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new home: port or pay off
Dgardiner
Posts: 4 Newbie
hi
I'm in a position to pay off remaining mortgage <50k on current property (lucky but due to sad inheritance...) and rent out whilst moving to second property I've had an offer accepted on,
brokers and financial advisors have advised me this is high risk and that I should also get 2 mortgages, one buy to let IO and second one on new property.
This makes no sense to me
-is it not better to pay off mortgage (Its got no ERC) and get new one for new property?
-can I not use new value of existing property as deposit or is there a ceiling on this?
-if I have to get BTL and new mortgage what's the proportion of equity that I can port to new mortgage? this percentage seems an inconsistent mystery according to google and the broker
any help gratefully received as think I'm being a bit simple about the whole process
thanks
I'm in a position to pay off remaining mortgage <50k on current property (lucky but due to sad inheritance...) and rent out whilst moving to second property I've had an offer accepted on,
brokers and financial advisors have advised me this is high risk and that I should also get 2 mortgages, one buy to let IO and second one on new property.
This makes no sense to me
-is it not better to pay off mortgage (Its got no ERC) and get new one for new property?
-can I not use new value of existing property as deposit or is there a ceiling on this?
-if I have to get BTL and new mortgage what's the proportion of equity that I can port to new mortgage? this percentage seems an inconsistent mystery according to google and the broker
any help gratefully received as think I'm being a bit simple about the whole process
thanks
0
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