General (main property discussion here) - Am I doing the right thing

Hi, I am in the process of buying a family home. I currently live in a flat which is in my name (single application). We have managed to get a mortgage for the new house on a joint application (up to £225k). I will be releasing some equity from the flat to purchase the my family home. At the end of this year my flat mortgage deal comes to an end at which point i want to change to BTL. Only problem I am encountering is my mortgage payments are not likely to exceed £720pcm with an outstanding mortgage amount of £146k on a flat worth £180k. Would it be advisable to keep both mortgages running as residential and not switching the flat to BTL? Thanks in advance. Jin

I had a chat with a guy about this a long time ago.

I will try to remember what he said and come back to you, sorry not to have been any more help at this stage!

Anyone else know?

Hi there, my advise would be to mortgage the flat for as much as possble and use this to put into your new purchase, reason been it's a tax advantage (always have a big mortgage on your BTL and the smaller mortgage on your residential.

When you have completed on both then just inform your lender of a change of circumstances and that you will need to rent the property out, most lenders will allow this and change it over FOC, others may charge.

Of course all the above is fine, but you still have to find the extra money for the BTL and if you have any void months this will also cost plus repairs.

Best advise is do not tie yourself into a new deal, in case you wish to sell later.

Alex M CeMAP,FPC

Hi there, my advise would be to mortgage the flat for as much as possble and use this to put into your new purchase, reason been it's a tax advantage (always have a big mortgage on your BTL and the smaller mortgage on your residential.

When you have completed on both then just inform your lender of a change of circumstances and that you will need to rent the property out, most lenders will allow this and change it over FOC, others may charge.

Of course all the above is fine, but you still have to find the extra money for the BTL and if you have any void months this will also cost plus repairs.

Best advise is do not tie yourself into a new deal, in case you wish to sell later.

Alex M CeMAP,FPC