Owning your own home

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Howard
Guys halp.

I have two properties (YOU MONSTER)

Let-flat, balance £210,000, 4% variable because I tried to sell it but it went tits up
Resi-flat, balance £110,000 2.5% fixed until 2019

Plan:
- Borrow additional £210,000 against resi-flat and pay off Let flat mortgage at 1.9 fixed 5yr
- Sell let flat at a suitable time i.e. 6 mo without incurring ERCs
- invest remaining equity in something (BITCOIN)
- Port mortgage to new property around 2019/20
Lender will let me do this.

Is there something I'm missing? It seems like a good way of:
- getting certainty on finance costs for five years through brexit
- borrowing a sizable amount at a great rate
- stop hemorrhaging cash by being on variable rate on Let-Flat
What am I missing?

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NickCJ in reply to @Howard

You will probably pay more tax as you have less interest to deduct on your BTL. However, this exemption is being phased out anyway so you might not care.

Other point is that now all of your debt is recourse to your home, meaning if things go tits up you are properly shafted.

Also, what will you do with proceeds of BTL sale? You will likely have ERCs on your new resi mortgage if it's a 5y fix.
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aggi in reply to @Howard

Where are the two properties? If they're in different parts of the country then keeping two may be more of a hedge against property price fluctuations.

I assume you've considered the CGT implications of selling the rental property. It may be worth "living" there for a while before selling it.

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