To remortgage for buy to let deposit or whole amount

corrado999

Hi all
After some advice from you knowledgable good people .

I’m 39 years old and due to the rising market and good luck with previous houses i have a bit of equity and want to do somthing with it rather then just wait until I’m retired and sell my house to enjoy the money.

My house is worth circa 500k with a remaining mortgage of 175 giving me 325 k equity approx

I live in a booming town of north essex where property’s are at a premium and has a good rental scene

I have toyed with the idea of property development but for the time being i have decided to buy a property to buy to let to see if i can handle the stresses and strains of having a family and full time job whilst dabbling in this area

My question is ..

I’m planning on buying a property for 150-200k and rent it out with the plan on selling or renting it when I’m retired for extra income.
If i want a buy to let mortgage do i remortgage for the deposit only then take out a new mortgage with 25-40 percent deposit or do i remortgage for the whole amount to buy a property for 150k-200k outright?
I know it is dependant on mortgage costs and a million things , income, disposable income, costs, rental yield and on and on

I have some knowledge but no knowledge at the same time!

I have equity and want to make it work for me , maybe there’s a better plan you guys could advise me on

As well as equity i have some extra income every month to put towards mortgage payments

I currently over pay 300 pounds per month off our current mortgage to reduce the debt quickly. Maybe its a pipe dream to use the equity ?, should i just pay off my mortgage with my money?

Should i pay for independent financial advice? Does this cost much?

Sorry rambling now any advice appreciated and sorry if this is posted in wrong forum
Have a great weekend

dimbo61

The mortgage world has moved on in the last 24 months.
Tax on rental property has changed.
Getting a BTL mortgage is more difficult.
If you have a good income anything is possible.
Start doing your own research

Thrugelmir

corrado999 wrote: »

I have equity and want to make it work for me , maybe there’s a better plan you guys could advise me on

Then downsize in property size to release the equity. Using the equity to leverage with more debt comes with risk. There's no guarantee that yoour venture will be profitable.

I currently over pay 300 pounds per month off our current mortgage to reduce the debt quickly. Maybe its a pipe dream to use the equity ?, should i just pay off my mortgage with my money?

Certainly nothing wrong in doing this. Not neccesary to take undue risk to financially secure ones future. You've still a mortgage of £175k to repay. As interest rates slowly rise then you will be paying more interest. Reducing your your mortgage as quickly as possible will do you no harm.