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Advice from a Broker please


daveeo0

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Hi, Im putting together a 12 month plan for a strong mortgage application next year - what is a brokers best advice regarding Equity vs Cash available?  This property unlike my others would be for a primary residence, not investment.  Im a high rate tax payer.

 

I have two options based on my goals -

  1. Hold my current property equity, saving as much on the side as possible towards deposit
  2. Sell some equity to contribute to a deposit (currently own 3 properties without mortgage)

 

Any help or advice appreciated! Thanks in advance

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The cost of borrowing will be cheaper on your residential than on a buy to let property.

 

However, a lot of people feel less comfortable with debt against their home than they do with debt against investment property.

 

So the correct answer really depends on your personal attitude towards it.

 

EDIT* Tax wise, you cant off set the interest on your residential home. But if you own your buy to lets in a LTD company then you can continue to off set the interest cost. (That is being phased out if you hold them personally.)

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