Borrowing against one house to buy another

kingstreet

For what purpose are you purchasing the additional property? What will be the use of the current property?

Tirian

user1977 said:

Tirian said:

silvercar said:

Nearest category is a re-mortgage, though technically you don't have a mortgage so it is just a mortgage, but as it doesn't involve moving, that is what I would choose.

None of the sites let you put in zero as the current mortgage balance for a remortgage ..

Which sites are you talking about? This is what the first one I tried (Nationwide) gives you:

I was using comparison sites ... I actually bank with Nationwide already so good to know they have a better system!!

Tirian

Flugelhorn said:

chrisw said:

Mortgage the BTL to keep it separate from your personal finances.

may not be a BTL, I did this for a holiday home

;

Exactly this - there is an existing rental property that was residential initially and then let out under permission to let, which I would sell to cover the cost of this purchase.  I don't particularly want to mortgage it as it will just add complication when selling it.

The new property is intended to be a holiday home, and I wouldn't necessarily be letting it out ... depends how much work it takes to manage all of that, because I won't have time to take that on.  Either it would have to be fully managed or else not let out.

I suppose if fully managed worked financially and helped cover some costs, while still allowing us to use it often enough then I might do that.  But I haven't really looked into that side enough to know 

The property I was looking to take the mortgage against is my own home.

Tirian

kingstreet said:

For what purpose are you purchasing the additional property? What will be the use of the current property?

1) Holiday home
2) Family residence

The intention would ultimately be to pay down the cost of purchasing the holiday home by selling a property that is currently rented out, but I'd prefer not to link the transactions as that will make everything more difficult and add unnecessary risks...

Hoenir

Tirian said:

The new property is intended to be a holiday home, and I wouldn't necessarily be letting it out ... depends how much work it takes to manage all of that, because I won't have time to take that on.  Either it would have to be fully managed or else not let out.

Holiday lets come under their own set of tax rules.