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Buying Off-Plan and Using Equity


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H all,

I hope everyone is well.

Just some quick feedback please. 

There is a new homes development going to take place just down the road from where I live and I am thinking of buying one of the new houses. Development has not started yet. The developer is Gleeson Homes. I want to reserve via off-plan. The cost of the new home is in the region of £150,000.

I have my own property valued at around £115,000, no mortgage and also money in cash around £50,000.

I would like to keep my current property to rent out once moving into the new home. I just wondered the 'cheapest' and 'best' way to go about doing all of this. Would it be to take some equity out of my current home and put this towards the new home ? I know I need to speak to a broker. I was thinking of possibly paying at least half the purchase of the new home via equity and the remainder on an interest only mortgage.

I have read numerously, that for off-plan you would likely need to put down a 10% deposit and you should really be offered between a 5-10% discount from the developer as well for purchasing off-plan.

Any feedback most welcome. Thank you

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