Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • thenap80
    • By thenap80 13th Oct 18, 10:12 PM
    • 329Posts
    • 12Thanks
    thenap80
    Quick question re. BTL
    • #1
    • 13th Oct 18, 10:12 PM
    Quick question re. BTL 13th Oct 18 at 10:12 PM
    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
Page 1
    • Pixie5740
    • By Pixie5740 13th Oct 18, 11:13 PM
    • 13,163 Posts
    • 18,978 Thanks
    Pixie5740
    • #2
    • 13th Oct 18, 11:13 PM
    • #2
    • 13th Oct 18, 11:13 PM
    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
    Originally posted by thenap80
    Deja vu

    https://forums.moneysavingexpert.com/showthread.php?t=5803165
    • thenap80
    • By thenap80 14th Oct 18, 1:32 AM
    • 329 Posts
    • 12 Thanks
    thenap80
    • #3
    • 14th Oct 18, 1:32 AM
    • #3
    • 14th Oct 18, 1:32 AM
    Didn't get an answer last time matey!
    • The Earl of Streatham
    • By The Earl of Streatham 14th Oct 18, 8:08 AM
    • 132 Posts
    • 257 Thanks
    The Earl of Streatham
    • #4
    • 14th Oct 18, 8:08 AM
    • #4
    • 14th Oct 18, 8:08 AM
    Didn't get an answer last time matey!
    Originally posted by thenap80
    That sort of attitude is unlikely to get you one this time either.
    • anselld
    • By anselld 14th Oct 18, 8:21 AM
    • 5,923 Posts
    • 5,656 Thanks
    anselld
    • #5
    • 14th Oct 18, 8:21 AM
    • #5
    • 14th Oct 18, 8:21 AM
    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
    • By 00ec25 14th Oct 18, 8:44 AM
    • 7,091 Posts
    • 6,796 Thanks
    00ec25
    • #6
    • 14th Oct 18, 8:44 AM
    • #6
    • 14th Oct 18, 8:44 AM
    Didn't get an answer last time matey!
    Originally posted by thenap80
    really? I rather thought you got several in depth answers, including....


    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?
    Originally posted by thenap80
    You're right.

    It makes no difference, whatsoever.
    Originally posted by kingstreet
    • thenap80
    • By thenap80 14th Oct 18, 10:51 AM
    • 329 Posts
    • 12 Thanks
    thenap80
    • #7
    • 14th Oct 18, 10:51 AM
    • #7
    • 14th Oct 18, 10:51 AM
    That sort of attitude is unlikely to get you one this time either.
    Originally posted by The Earl of Streatham
    Attitude? Excweez me? Bacon powder? It was a simple reply my friend!
    • dimbo61
    • By dimbo61 14th Oct 18, 12:50 PM
    • 10,046 Posts
    • 5,424 Thanks
    dimbo61
    • #8
    • 14th Oct 18, 12:50 PM
    • #8
    • 14th Oct 18, 12:50 PM
    You need to talk to your accountant or see one if you don't have one already
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,699Posts Today

9,733Users online

Martin's Twitter