Remortgage or Sell to buy 2nd property

Catbells

I own my house - value about £850k.  I'm 65.  I would like to buy a small second home.   The family could use it  and I could rent it out for 6 months of the year  - National Park £24k income.  Would it be better to remortgage my house to do this or sell my house outright?   I could buy a small flat nearby where I live now in London if I sell completely  -  I've lived here for 40 years and have friends here.   Keep thinking I might be too old to be thinking about doing this but I also want to help my son who has a chronic illness.  

lika_86

What's your ultimate aim? It sounds like an expensive plan to me to sell up once you take into account the sale and purchase costs on a place in London, second home stamp duty and the associated costs to maintain a home you don't live anywhere near and the costs in order to let it out. If you were to remortgage, what's your plan for repayment? Income from letting out the second home? You'd have to convince a lender that the income would be there to cover your mortgage and that it would be sufficient to cover your monthly payments (remember you will be taxed on rental income). Your age may be an issue for a lender, although some will lend over retirement age if there is income there.

Catbells

I haven't thought through much of this idea - hence coming here and thank you for pointing out the pitfalls.  My ultimate aim is not financial but to help my son who is virtually housebound in a built up area of London. However I don't want to put my pension at risk.   I  a have a large pension sum which I\m drawing down on annually, which might (?) persuade a lender to lend me the balance after I've remortgaged my home.  Yes  the income from the second home would be used for repayments.  I don't know how much tax is payable on this income so will need to find that out. Trying to balance out the pros and cons financially while keeping the ultimate goal in focus too.