IP2, no PPOR

I would suggest IO for your loans, especially investments. You should save the same interest anyway if you have the offset (unless you are tempted to spend).

You should be bale to apply for a loan increase too.

Banks will take into consideration you living at home, some banks will assume you pay a small rent others may not.

Hope you can keep on saving. I have tried to cut down my spending by not buying all the useless garbage i used to – I have even bought clothes and never worn them!

Hi cappy

The boys have certainly as expected given you good advice to date.

Even though you may live at home and pay no board or rent most lenders will factor something in as expense and this will effect your borrowing capacity.

Cheers

Yours in Finance

I think Richard might be posting from the otherside of the world (Europe) at present.

If it is not too late, you could do some research around the area similar to the type of property of your IP1 particular previously sold properties that are superior (e.g. good quality) but similar features (e.g. 3 bed rooms). Then, do another research of inferior properties (e.g. same features properties but sold less). In addition, if you've done some reno in your IP1, include this into your research and put everything together into a nice folder, label it with and present it to the valuer. Explain to the valuer the logic behind your research. Spend at least couple of days doing your research then provide him or her lots of research findings.

You see valuers usually have a lot of properties to value on a given day. Often time, they don't have enough time to do a thorough research..hence they provide conservative valuation on properties besides getting sued if they getting wrong incase it foreclosure. The research materials you supplied them helps to paint a clear picture of what are properties sold in your area and it might give you a reasonable value of your IP1 which helps nicely to form a deposit for IP2.