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Holiday Cottage
fauves
Posts: 10 Forumite
Evening all.
Looking for some advice regarding a mortgage / house purchase and thought this would be the sensible place to ask..
To give you a general idea:
- we own our main residence with a roughly 50% mortgage, interest only, 25 year term.
- we have enough savings invested to live off each year with some left for growth (we have been living off it for 5-6 years comfortably)
- we own one holiday cottage outright that pays approx 20k per year (will likely use this for extra income or to help pay off the main residence mortgage)
We have a decent sum of money also that we would like to use to purchase either one or two other holiday letting properties. We were advised to look into offset mortgages by our financial adviser. However, as we will be able to use a large portion of the income to pay off any mortgaged amounts, do you think it might be worth taking out a larger buy to let type mortgage and paying it off quite quickly with the income generated by the holiday let? I ask as we feel we are in a good position to take some risks and probably expand a bit.
If anyone had any insight that would be most helpful and I can clarify any further details if necessary.
Many Thanks
Looking for some advice regarding a mortgage / house purchase and thought this would be the sensible place to ask..
To give you a general idea:
- we own our main residence with a roughly 50% mortgage, interest only, 25 year term.
- we have enough savings invested to live off each year with some left for growth (we have been living off it for 5-6 years comfortably)
- we own one holiday cottage outright that pays approx 20k per year (will likely use this for extra income or to help pay off the main residence mortgage)
We have a decent sum of money also that we would like to use to purchase either one or two other holiday letting properties. We were advised to look into offset mortgages by our financial adviser. However, as we will be able to use a large portion of the income to pay off any mortgaged amounts, do you think it might be worth taking out a larger buy to let type mortgage and paying it off quite quickly with the income generated by the holiday let? I ask as we feel we are in a good position to take some risks and probably expand a bit.
If anyone had any insight that would be most helpful and I can clarify any further details if necessary.
Many Thanks
0
Comments
-
You can't use a BTL mortgage to buy a holiday let but need a special holiday let mortgage which some banks & building societies offer.
Unless you have substantial savings I can't see any point in an offset mortgage as the interest rate is always higher.0 -
Hi,
If you think Brexit might cause a recession or house price drops then I would sit tight and plan to buy after prices fall. Or at least until you feel that they won’t fall.
Our house is in Cornwall and in 2008/09 prices fell quickly and recovery has been slow. People will always need homes but they don’t always need second homes or holiday lets. If you buy now and prices do fall substantially it could take a long time to recover your original investment value.
Perhaps you are not concerned about this if you intend to hold the property long term? Recovery of our house price has taken about ten years.
If Brexit had serious financial consequences it could even affect bookings/prices of the let on a weekly basis.
Tlc0
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