Cash or Mortgage which is better?

by Readers Question

9:23 AM, 30th October 2015
About 5 years ago

Cash or Mortgage which is better?

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Cash or Mortgage which is better?

I rent out 7 properties in the UK and 6 have no mortgage. I am looking to increase my monthly income by buying a 2 bed cottage for 220,000 in cash to rent out for £850 to £1150 approx. cash or credit

My question is would it be the correct decision to use all that cash to buy a property to rent out. Also I live abroad and find it difficult to get any mortgage in UK.

Is it wise to buy rental property’s in cash therefore have no mortgages?

Many thanks


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Neil Patterson

9:28 AM, 30th October 2015
About 5 years ago

Hi Christopher,

Before the summer budget I would have probably said it is safer to borrow someone elses money, but now it is very different see >>

If you are an expat lenders will still offer BTL mortgages often at reduced LTVs, but it all now depends on your tax status and if you pay Uk taxes?

Mark Alexander

9:33 AM, 30th October 2015
About 5 years ago

The Budget announcement has rocked the confidence of a lot of investors but I am still an advocate of borrowing and gearing.

The Budget has made the structuring of holding the investment far more important though.

See our Advice and Tax sections.

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