Fair Rents (Scotland) Bill or Artificial state manipulation of free market rent?10:34 AM, 6th November 2020
About 3 weeks ago 36
I would really appreciate some input having read though the “Advice” articles here.
I currently own my own home outright without a mortgage. I was thinking of remortgaging to release some equity which combined with a small pot of cash I have available could be used as deposits on two small BTL properties (in the region of £140-£150k each). I have actually had a mortgage agreed in principle by my bank in order to do this, being totally upfront about what I am remortgaging for. The LTV is low, circa 35% and they have no problem with it.
My question relates specifically to whether to have this remortgage aspect on a capital repayment mortgage or interest only? I was intending to have the remortgage element on capital repayment and any BTL mortgages on interest only (BTL mortgages would have LTV of close to 60% in order to take advantage of good rates I have been offered, again by my bank).
Having now read your article I am now doubting this approach is correct, I was wondering that your thoughts were?
My goal if that is helpful is focussed on longer term, pension planning planning.
Any steer would be gratefully received.
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