Use of equity in buy to let

[RosieLeaLovesTea]

Hi all
I am thinking about needing to diversify and start investing. I have a buy to let Proprty and only £60,000 left on the mortgage. I was considering another buy to let but the tax burdens have increased and I am 40% tac payer. So there is no profit while paying off a mortgage.

Also I have approx £150,000 Equity in that house. So I won’t see the benefit of that money if I keep it long term and just receive the rental income.

I was thinking about remortgaging and taking a chunk of the equity and investing it elsewhere?

What would you suggest?

How old are you?

what other savings, and investments do you have?

Do you have children?

What long term financial goas do you have and when do you want to achieve them?

What you are asking is difficult to answer without more context of your situation

I am 43. 2 DCs aged 7 and 5. Work full time.
I have a local authority pension which I have been paying into for 20 years. I know I’ll get a lump sum with that.
I have approx 30k in savings - not doing much with it - Just in iSAs.
One buy to let property with approx £150,000 equity.

What are your long term financial goals?

Do you want to stop working full time before state pension age?

With two young children, do you plan to sae for university for them/property deposit/something else?

I assume as a 40% tax payer and in the local authority pension, that you have a relatively generous final salary pension scheme, so pension saving is less of a priority for you.

Do you intend to move to a new house sometime soon, or is the one you live in now perfectly suitable for the long term?

You need to sit down, and have a think about your long term goals and plans, when you will need large lump sums of money, when do you want to stop working full time, and so on. You don't mention a partner, is there one? What do they earn, what are their thoughts on things?

overall a lot of your wealth is in property, so it would make sense to diversify things and potentially reduce the risks you face. What you do, depends on your plans and goals, and timescales.