Buying new house; use equity or not?

gymguy2017

I have fully paid off a mortgage for a flat, which I am letting out to tenants.
I am currently living in another flat with my partner.
We are thinking about moving to another property, probably a new house.
I have some savings for a deposit.
How do I figure out if it is better to use the equity from the flat I now completely own to use towards my new place or whether I should use savings to pay the deposit that I can afford?
I have not a great understanding of this stuff, so any advice would be greatly appreciated!

Bossypants

This is really a personal decision to make. Some people will point out that borrowing is cheap right now and likely to remain so for at least a couple of years, so best to take a BTL mortgage on the flat and invest your cash to make the most of it. Others will say you can't beat the security of a mortgage-free property. Ultimately, when you can afford to do it both ways, it comes down to your own personal preference.

For what it's worth, in your shoes I would keep the flat mortgage free and use my savings for the deposit on the new place. Don't forget to allow for the higher stamp duty in your calculations, as you will be buying a second property.