Posted on 9 April 2013 by Graham
I have a property worth £180000 with a 49000 mortgage on it, I could clear the mortgage this August, I would like to let to buy and buy another property for £250000,I earn 39000. Would it be better to clear existing mortgage or use the 49000 as a deposit. Does this sound possible.
It does indeed sound possible. There's a lot more information that I'd need before I can say a definite 'yes', but with the initial details you've supplied it looks feasible.
With regards to the £49,000 if you're going to capital raising to provide the rest of the deposit for your new home, then I'd probably say to hang on to the money and clear the exisiting mortgage with your new Buy To Let one.
If you'd like to get some more detail on what's available to you, then let me know and I'll arrange for one of our consultants to contact you.
More than mortgages, talk to me about:
Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance
General Insurance | Valuations | Conveyancing | Wills | Home finders
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.