My wife and I are thinking of buying a new home and we’re not sure what to do with our respective buy-to-lets
Q I rent my house out to a friend for £600 a month. My mortgage for the property is £623 a month and I have nine years left on it with £63,000 outstanding. The house is worth approximately £120,000 so I have £57,000 in equity.
I am looking to buy a new home with my wife for around £130,000. She too, owns a property worth £115,000, pays £450 a month for her mortgage and has about £20,000 in equity. We don’t know whether to sell both properties and buy a new house, or alternatively rent one of them out. But we think owning three houses could be too risky.