Hi, We are thinking of buying another property soon but we are not sure if we want to sell my husband's house which we currently rent out or keep it and not have to worry about selling at the moment. It is all paid off so no mortgage and value I imagine at around £130.000
So I was wondering if we would still need a deposit if we are going for a new mortgage or if our assets would suffice?
For most standard mortgages you will need a deposit for the new home that you are purchasing. One possibility is that you could remortgage on your current property in order to release some funds that you can apply as a deposit to your new place. You might be able to find a mortgage lender that will lend 100% on the new property in return for taking security on your existing property however this is less common these days and you will need to go through a mortgage broker to find a lender that will do that. Happy house hunting!
If you are renting out, it makes sense to take as much capital as possible on a decent mortgage term out of your rented property, because you will be able to offset the interest part of your mortgage against the income from the rent, which means a lot less tax. It doesn't make sense really to hold the debt on your main property.