I am currently living overseas and I would like to buy a house as we are settled and wanting to stay. I own 2 properties in the UK, and would like some advice on these. Property a (London) has 10 years left and about 75k owing. Property b has about 50k equity, but the rental income currently covers the mortgage on both properties. I would like to know whether it would be best to sell property b and overpay the mortgage on property a, or sell property b and use as a deposit for new house, or keep both properties? reading this back I have confused myself, but hope someone has some good advice.
The higher the deposit you can generate on the new property at the moment, the lower the interest rate you will probably be offered. If you have enough cash to put down, keep both properties. If you don't have the cash to put down & if Property B isn't costing you any money, it would make sense to sell Property A and use the capital generated as deposit on the new place.