Continue with BTL purchase or pull out?
Property Investment

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7 Posts
1 year ago

Have discovered insurance problems on a BTL property purchase I’m almost ready to exchange on, and along with expensive refurb, and an agreed (in March) sale price that is now higher than other comparative properties, I’m thinking of pulling out of the purchase. The problem is of course, the hikes in interest rates mean I’ll be making much less profit if I buy a different property now. Like others I’m spooked with all the current uncertainty and don’t know if I should

a)continue with the original purchase on the basis that I have a 5yr mortgage deal at 2.5% (although will have the worry of overstretching myself financially and the insurance/lease issues which could make it difficult to sell on), or

b)go with a £10k cheaper property on a rate of 5% fixed for 2yrs but make half the profit but with more peace of mind, or

c) pull out altogether and wait to see if house prices reduce to a point where they mitigate the hikes in interest rates.

This will be my fourth BTL, 2 don’t have mortgages but are worth much less, they are supposed to be a pension plan but even that looks dubious at the moment!!

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