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what is the best way to fund a buy-to-let-mortgage is it to release equity on your own house or a mortgage?

07 Mar
 
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  1. whatevit

    March 7, 2010 at 8:57 pm

    The best way is dependent on degree of risk and carrying charges of loans.

    If you have an estate that has a lot of capital value. A mortgage against the home is your own money paying you to have an income producing property.

    If you are average below 75% ownership of equity in your home, then a mortgage on the property to let is the best course of action.

    You should pay the mortgage on rental property at twice the speed as a mortgage on a home. The sooner the rental property is mortgage free the sooner you are freed from mishaps that come with rental of income property.