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Paid off current Mortgage. How do I buy another one?

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    Paid off current Mortgage. How do I buy another one?

    Recently paid off the only mortgage I had. Own it fully now. Its value increased by around 50%-60%. Want to buy another, rent it out until retirement. Not sure where to start. Haven't approached banks yet but trying to gather as much information as possible, gone through plenty of Googling. As Some/many here probably would have done it, just thought of seeking your views, experience etc.

    #2
    What do you mean where to start? You do the same as everyone else on the planet that owns a house. Plan forward, find a property, get a BTL mortgage, buy the house and rent in out. Which bit are you struggling with?
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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      #3
      Originally posted by northernladuk View Post
      What do you mean where to start? You do the same as everyone else on the planet that owns a house. Plan forward, find a property, get a BTL mortgage, buy the house and rent in out. Which bit are you struggling with?
      He's struggling with us not swooning that he's paid his mortgage off ...... he's somehow missing that we're all contractors/ex-contractors and most of us paid off our mortgages years ago and so are hardly impressed by this.
      I am what I drink, and I'm a bitter man

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        #4
        Originally posted by BigDataPro View Post
        Recently paid off the only mortgage I had. Own it fully now. Its value increased by around 50%-60%. Want to buy another, rent it out until retirement. Not sure where to start. Haven't approached banks yet but trying to gather as much information as possible, gone through plenty of Googling. As Some/many here probably would have done it, just thought of seeking your views, experience etc.
        Raise capital on your existing property so that you can buy a second property with cash. You will have a much better a cheaper choice. I would suggest a mixed use property with residential above.

        "A people that elect corrupt politicians, imposters, thieves and traitors are not victims, but accomplices," George Orwell

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          #5
          Originally posted by BigDataPro View Post
          Recently paid off the only mortgage I had. Own it fully now. Its value increased by around 50%-60%. Want to buy another, rent it out until retirement. Not sure where to start. Haven't approached banks yet but trying to gather as much information as possible, gone through plenty of Googling. As Some/many here probably would have done it, just thought of seeking your views, experience etc.
          Bear in mind if you take out a BTL mortgage any interest incurred on the BTL cannot be offset against profits. This changes your numbers significantly. If your planning to finance the purchase its sometimes better to buy via a SPV LTD company though probably not for one property. You need to think ahead as doing it wrong at the start can be expensive to fix down the line. But if your looking to purchase a few using some of the equity in your own house then givingg the SPV a large loan allows you to get started with mutliple purchases straight away and also means you have a mega loan owed to you which means money can probably be extracted for years with no costs other than corporation tax.

          It pays to get some proper advice on this before you jump in.

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            #6
            Originally posted by Paddy View Post

            Raise capital on your existing property so that you can buy a second property with cash. You will have a much better a cheaper choice. I would suggest a mixed use property with residential above.
            Kebab shop?

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              #7
              Originally posted by BigDataPro View Post
              Recently paid off the only mortgage I had. Own it fully now. Its value increased by around 50%-60%. Want to buy another, rent it out until retirement. Not sure where to start. Haven't approached banks yet but trying to gather as much information as possible, gone through plenty of Googling. As Some/many here probably would have done it, just thought of seeking your views, experience etc.
              Being a landlord myself I think I understand your question. You can remortgage your house, release equity to buy another house however best speaking to a broker who understands your circumstances.

              It may also be best that you speak to an accountant to get the property structure correct i.e Ltd company or personal etc.

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                #8
                I did mine some years ago by remortgaging my own home to generate a lump sum. I said it what to buy a holiday home. Then with the cash I bought a 2nd house which I rent out. I found this to be cheaper and easier than getting a BTL mortgage on the rental.
                First Law of Contracting: Only the strong survive

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                  #9
                  Get a good broker to advise you.
                  A broker that understands contractors is your best bet here.
                  In terms of property class, returns are a bit better with mixed commercial stuff. IME.
                  Do chat to your accountant about how to structure the investment.
                  My advice would not be to lump in your ltd co.
                  Former IPSE member
                  My Website

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                    #10
                    Originally posted by ladymuck View Post

                    Kebab shop?
                    Sofa store cut out the middleman!
                    Always forgive your enemies; nothing annoys them so much.

                    Comment

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