General Mortgage Advice

Darcy1980

Hi,

I am seeking some general mortgage advice or is it re-mortgage advice.

What options are available if someone has 2 properties (me and my partner's houses) valued at approx £100,000 each, both mortgage-free.

A savings pot of £30,000

Interested in purchasing a new property at approximately £180,000

in regards to the situation above, what would be the best way to purchase the new property? 

Would it be best to sell both properties and then purchase the new property and be happy mortgage free? Or would it be possible for mortgage providers to allow us to use the 2 properties as equity and not sell, and rent the 2 properties to fund the monthly mortgage payments?

Would be interested to know peoples thoughts on this and or, what other options or terms maybe available.

Many Thanks
S

ACG

There is not really enough information. 
But you could potentially:
Take out a mortgage on the new property for around £160k (keeping money back for the stamp duty). 
Take out a (presumably buy to let or more accurately let to buy mortgage) against one or both existing properties. 
Sell the existing properties and buy for cash. 

Difficult to say which you would be best doing as it depends on your income(s), your preferences and so on. 

Darcy1980

Thanks for response..incomes are low 20k each. 

Darcy1980

ACG said:

There is not really enough information. 
But you could potentially:
Take out a mortgage on the new property for around £160k (keeping money back for the stamp duty). 
Take out a (presumably buy to let or more accurately let to buy mortgage) against one or both existing properties. 
Sell the existing properties and buy for cash. 

Difficult to say which you would be best doing as it depends on your income(s), your preferences and so on. 

As mentioned incomes are not huge amounts, however preference would be to rent the 2 properties and take a mortgage on the new property. I had never thought about only let to buy on one of the properties, i guess that would depend on how much equity required to secure the new property.

ACG

Its very difficult to say what you should do. All 3 seem like they could be available to you. But all comes with pros and cons. 

I have been a landlord, I would never do it again... And I did it when income and CGT implications were more favourable than they are now. 

You really need to sit down with an experienced broker and probably an accountant.