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Quick question re. BTL

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thenap80
thenap80 Posts: 421 Forumite
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in House buying, renting & selling
I have a house that I rent out. It is worth approx 300k and I own outright (not mortgaged)

I want to buy another place - seen a place for 250k.

My question is do I take out a brand new BTL mortgage on the new property, or as someone advised me, mortgage the 300k house I already own and let, and take 150k from that (plus 100k deposit I now have) for buying the new place.

I don't see how it would make any difference? In both instance I'm estimating the LTR ratio would be less than 60 percent.

What is normal practice in this scenario?

Thanks :)

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  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    thenap80 wrote: »
    I have a house that I rent out. It is worth approx 300k and I own outright (not mortgaged)

    I want to buy another place - seen a place for 250k.

    My question is do I take out a brand new BTL mortgage on the new property, or as someone advised me, mortgage the 300k house I already own and let, and take 150k from that (plus 100k deposit I now have) for buying the new place.

    I don't see how it would make any difference? In both instance I'm estimating the LTR ratio would be less than 60 percent.

    What is normal practice in this scenario?

    Thanks :)

    Deja vu

    https://forums.moneysavingexpert.com/showthread.php?t=5803165
  • thenap80
    thenap80 Posts: 421 Forumite
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    Pixie5740 wrote: »
    Deja vu

    https://forums.moneysavingexpert.com/showthread.php?t=5803165

    Didn't get an answer last time matey!
  • The_Earl_of_Streatham
    The_Earl_of_Streatham Posts: 161 Forumite
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    thenap80 wrote: »
    Didn't get an answer last time matey!

    That sort of attitude is unlikely to get you one this time either.
  • anselld
    anselld Posts: 8,282 Forumite
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    The advantage of remortgage the existing is that you have cash in bank to buy the second. That can open up some properties that would be difficult to purchase with a mortgage (renovation, auction, non-standard construction, etc).

    The disadvantage is you have money sat in bank costing interest whilst you look for your second purchase.

    If your second purchase will be a normal mortgageable property then it makes no difference (as alread stated in the other thread).
  • 00ec25
    00ec25 Posts: 9,123 Forumite
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    thenap80 wrote: »
    Didn't get an answer last time matey!
    really? I rather thought you got several in depth answers, including....

    thenap80 wrote: »
    What I do struggle to get my head round though is why is it best to do it this way - tat is to say, why not just take out a new mortgage on the second property I would buy?
    kingstreet wrote: »
    You're right.

    It makes no difference, whatsoever.
  • thenap80
    thenap80 Posts: 421 Forumite
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    The_Earl_of_Streatham wrote: »
    That sort of attitude is unlikely to get you one this time either.

    Attitude? Excweez me? Bacon powder? It was a simple reply my friend!
  • dimbo61
    dimbo61 Posts: 13,716 Forumite
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    You need to talk to your accountant or see one if you don't have one already
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