Too much equity – best way to increase incomeMake Text Bigger
We (husband and I) currently own two let properties.
One is worth around £170,000 – with no mortgage on it – currently let for £675 per month gross.
The second is worth around £160,000 with a £63,000 interest only mortgage – repayable in about 10 years and lets for £560 per month.
Both sets of tenants have been in place for over ten years.
We also own our own house which is worth approximately £250,000 and we currently owe £55,000 on a capital and repayment mortgage (interest rate 1.25%) with a drawn down facility where we could access a further £55,000.
We also have around £75,000 in savings at various rates from not bad (in an Equity ISA wrap) to rubbish in the Nationwide (2.5% in regular savings) and 3% in Santander 123.
We are looking to increase the value of what we own and provide an increased income.
However, we are retired and need our income guaranteed due to low pensions.
As we are in our 60’s would we be able to get a new buy to let mortgage?
We are thinking about buying a holiday rental property in Dorset – does anyone have any experience of this type of letting?
Two bedroom houses in our home town start from about £160,000 to £170,000 so would require a large injection of cash and a mortgage.
Should we look at properties further afield?
Any advice would be most welcome.
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