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Buying a 2nd home
moneypenny2k
Posts: 1,128 Forumite
I have a house currently valued at £200k with a mortgage of £106k. I currently earn approx £40k.
I am thinking of buying a flat valued around £250k, I'm not sure whether to borrow against the equity in my house to fund the deposit on the new place and rent out the house to cover the mortgage on the house, possibly to my son and his family. Then I'd live in the flat on my own and pay the mortgage from my salary.
Or... should I just sell the house and buy the flat?
Firstly, is this a good idea? Opinions welcome and secondly, where can i get some good advice regarding mortgages/loans etc
I am thinking of buying a flat valued around £250k, I'm not sure whether to borrow against the equity in my house to fund the deposit on the new place and rent out the house to cover the mortgage on the house, possibly to my son and his family. Then I'd live in the flat on my own and pay the mortgage from my salary.
Or... should I just sell the house and buy the flat?
Firstly, is this a good idea? Opinions welcome and secondly, where can i get some good advice regarding mortgages/loans etc
0
Comments
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MFW - the light from the end of the tunnel is shining down on me . . . . .
£57K of my house still belongs to the bank, on target to clear 2015 but I'm hoping to get there much sooner.
Looking forward to celebrating :beer:
Congratulations to thefunkygibbons on becoming mortgage free and thanks for the inspiration along the way :T0 -
Errr not sure if I should be saying thanks, or if you're taking the mick out of me... I'm considering my options, asked for opinions, not sarky comments.0
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Sounds like you would be extending yourself a lot, with your own home at risk if it all goes pop.
What are your objectives? To benefit from the capital appreciation of the properties? Don't forget CGT will have to be considered when you sell the one that isn't your home.0
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