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New BTL mortgage or Additional Borrowing from residential mortgage?

We have a residential mortgage + additional borrowing for 2 properties. We live in one and rent the other. Only £45k left on mortgage (total). We want to buy a new flat to rent it out. Is it better to take a new BTL mortgage, or should we just do another additional borrowing? What's the advantage or disadvantage with either? Thanks.

Comments

  • Too little info to make useful comments. If you're comfortable doing so, please share -

    Property 1 (Resi) - value and o/s mortgage
    Property 2 (BTL) - value and o/s mortgage
    Property 3 (future BTL flat) - value
    Are you buying in your name or through a limited co.?
    Cash that you can put as deposit?
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    Whichever's cheaper, once income tax is taken into account - assuming you aren't planning on putting whichever property at risk by not keeping up with the repayments.
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