How should I organise my property portfolio?

Posted on 8 June 2009

I own outright a house valued at 350,000 and I currently have a 2nd home value at £125,000 with an outstanding mortgage of £50,000. I would like to purchase another home as a 3rd home valued at £175,000. I have a cash deposit of £100,000 - would it make more sense to pay off the £50,000 on the 2nd house and £50,000 off the third or pay it all of the 3rd?

I can afford the repayments no matter the outcome but what would make more sense - pay off 2nd house fully or pay larger amount off 3rd?

It is very difficult to provide specific advice without going into a few further details.  For example, what is your income?  Are any of these properties going to be rented out, and, as such, need a buy to let mortgage?

The other factor is what is the purchase price of the third property and the subsequent loan to value.  As the best mortgage are currently for properties with a 60% LTV or less, it wold be beneficially to ensure you have mortgages that are less than these levels on any of your properties.

My advice would be to speak to an independent mortgage adviser and have a full and detailed review of your portfolio to decide the best way forward.  Sorry that I cannot be any more specific here.

Kind regards

Category: Buy-to-let, Remortgaging, Second properties

 

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