Hi theboycj, Some good points have been pointed out here. If it's a question of whether to retain your current property to move home, London property price increases year on year make having a second investment property very worthwhile. Say property prices rise 5% over 2016- a 5% increase on two properties that you own is double capital appreciation on just one. Yes it can be a headache if you don't find the right tenants, but there are insurances out there to protect you. 10 years ago we were saying that property prices can't go much higher but then they did. 5 years ago we were still saing the same, but then they did! Although house price increases seem to have slowed down, I'm confident they will continue to go up. And if you do get the right mortgage product, you will be able to achieve reasonable side income from the rent too. In my opinion a much better deal than selling to minimise mortgage payments, however if the goal is to be mortgage free at some point and to have minimum risk, then selling to fund your new purchase is probably the most suitable option. Regarding the B2L stamp increase, the increase will only apply to purchasing a B2L, so if you are buying to move home, it shouldn't be classed as a B2L and therefore you wont be affected by the increase. If you stayed where you are, released equity on your home to by a second property to let out, then it would. Downside that will affect you either way is the government's proposal to limit tax relief on mortgage interest. I'd say speak to a few mortgage brokers to see what works for you. M
