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Can I use my savings to put a deposit down for a second house and put rental in my current home?

06 April 2022

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Question by Mohammed

Hi,


I own my house outright can I use my savings to put a deposit down for a second house and put rental in my current home?

Mohammed


Answered by Joshua Gerstler

Hi Mohammed,

It's great that you are buying your second property.

If you are going to live in the new property then it makes sense to use your current property as a rental property.

If you wanted to, you could take out a Buy to Let mortgage on the current property and use the proceeds of this (along with your savings) to purchase your new home.

Alternatively, you could take out a Residential mortgage on the new home.

I hope that helps!

Josh

Answered by

Joshua Gerstler

Chartered Financial Planner

I have been working in Financial Services for over 16 years. I started out at Deloitte where I trained and qualified as a Chartered Accountant before moving to Financial Advice/Planning at The Orchard Practice in 2011.