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  • FIRST POST
    • thenap80
    • By thenap80 13th Oct 18, 9:12 PM
    • 363Posts
    • 13Thanks
    thenap80
    Quick question re. BTL
    • #1
    • 13th Oct 18, 9:12 PM
    Quick question re. BTL 13th Oct 18 at 9:12 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, 10:13 PM
    • 13,750 Posts
    • 19,902 Thanks
    Pixie5740
    • #2
    • 13th Oct 18, 10:13 PM
    • #2
    • 13th Oct 18, 10:13 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, 12:32 AM
    • 363 Posts
    • 13 Thanks
    thenap80
    • #3
    • 14th Oct 18, 12:32 AM
    • #3
    • 14th Oct 18, 12:32 AM
    Didn't get an answer last time matey!
    • The Earl of Streatham
    • By The Earl of Streatham 14th Oct 18, 7:08 AM
    • 138 Posts
    • 280 Thanks
    The Earl of Streatham
    • #4
    • 14th Oct 18, 7:08 AM
    • #4
    • 14th Oct 18, 7:08 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, 7:21 AM
    • 6,275 Posts
    • 6,088 Thanks
    anselld
    • #5
    • 14th Oct 18, 7:21 AM
    • #5
    • 14th Oct 18, 7:21 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, 7:44 AM
    • 8,029 Posts
    • 7,758 Thanks
    00ec25
    • #6
    • 14th Oct 18, 7:44 AM
    • #6
    • 14th Oct 18, 7:44 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, 9:51 AM
    • 363 Posts
    • 13 Thanks
    thenap80
    • #7
    • 14th Oct 18, 9:51 AM
    • #7
    • 14th Oct 18, 9:51 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, 11:50 AM
    • 10,253 Posts
    • 5,561 Thanks
    dimbo61
    • #8
    • 14th Oct 18, 11:50 AM
    • #8
    • 14th Oct 18, 11:50 AM
    You need to talk to your accountant or see one if you don't have one already
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