Remortgage or buy outright

[Bigeye74]

I potentially have enough money to clear a mortgage or buy a new house outright (with little left over).
I am interested in buying a house for developement. What do I need to consider in deciding wether or not to pay off the mortgage on a house and remortgage to finance a new buy or use that money solely as a deposit for a new buy.
Also where can I find the information that will guide me in making this decision?

[Count-A-Strong]

What experience do you have in developing? Will you be carrying out the works yourself of replying on tradesmen?

[Bigeye74]

The aim will be to do as much preparatory work as possible. After that the majority of the work will be completed by tradesman.
No experience in developing

[factor-fiction]

Maybe I'm not thinking straight today but I'm not totally clear about what you are asking. When you say remortagage I think you mean take out a mortgage for the new house. And when you say use your money as a deposit on a new buy do you mean 'deposit' or do you mean pay outright (as you said you had more than enough to buy it outright.
Paying off one mortgage and taking out another could result in unnecessary fees. You may also find that the rates for a buy to let mortgage (if that's what you are considering) are higher.
The best thing is to get some quotes

[bednobs]

it would also depend on how secure you feel in you job in this current climate

[Bigeye74]

I will have lump sum £xxx.
£xxx will pay off a current mortgage or buy outright a house at the very bottom end of the market leaving little to play with.
I am assuming that I will need to raise a working capitol for any renovation work on a new house.
If I remortgage to raise capitol am I going to be in a better position to buy a house for renovation or would I be better off trying to get a mortgage on the new house to raise the working capitol?

[factor-fiction]

Remortgage what? Why pay off a mortage and then remortagage the same property?
I still don't follow. Are you sure you mean REMORTGAGE?

[Bigeye74]

Remortgage - There is some equity on the house. Unsure if 'remortgage' is the right word.
My job is pretty secure for the foreseeable future. How would this affect which was I finance a new buy?

[factor-fiction]

I'm still not clear what you mean so I'll leave the thread for now and maybe come back later after maybe a few more posts have been added when things might be clearer for me

[Count-A-Strong]

From your replies I would say that you should stay well away from going into the property development Market. You seem unsure as to how you are going to finance the venture and you seem to be naive about potential costs.

[Bigeye74]

Well, I've one OK from it so far, but it been for security not to generate an income. As for naivety, we all we're once.
I don't understand the process of remortgaging a house I completely own. Does this allow me to spend the money as I wish? i.e buying and renovating a house. OR trying to get a mortgage on said house and using my savings to pay for the renovations.
What are the risks? Are they equal? Is one easier to do than the other?