Hi,
I am selling my rental property and will realise £200,000 pounds profit and a further £70,000 equity.
I am looking to buy an investment property where I have moved to. With my equity I can afford to buy prime area flat with no mortgage.
However, I have a lifetime mortgage traking the base rate + 1.99 so currently 2.5% until rates go up.
I can port the mortgage. Should I use the mortgage to obtain more leverage or just get out of the game and buy with no mortgage?
I am fully invested in non taxable UK stocks and shares accounts so I don't really have anywhere else to put the money other than property.
Port the mortgage, invest the rest, perhaps in another good rental. Obviously you need to make sure you get good ones.
For BTL, the rates I see are more like 5%, 7%. Base + 2 is great.
Now, I do believe there is likely to be a correction in the UK, but who knows. Heh, maybe take a punt in the US - port the mortgage, take some of the funds and buy a couple of much better, %age wise, places over Stateside.. It's fun (promise!).
Why do you care if you're paying 62% on more money? It's still more! Yeah you only get to keep 38% of it, but I'd rather have 38% of 20k than 100% of nothing!