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can't sell! should we remortgage buy-to-let or bridge???

(20 Posts)
MissChief Mon 05-Jun-06 10:52:15

our house isn't shifting and we're desperate to move into new area.
anyone got experience of either:
1)remortgaging their original house to release equity for new house (and new mortgage) & converting old mortgage to buy to let

2) getting open bridging loan (as we haven't yet sold) - I know these typically have health warnings attached!

Without going into huge detail, we have a high mortgage with around 30% equity in our current house. We also have a relatively high income. Our house would rent out for approx £1800 a month which should cover buy-to-let interest only mortgage payments but possibly not up to 125% as often specified.

any tips? anyone had experience of this?
TIA!

LIZS Mon 05-Jun-06 11:02:10

Don't have experience of this but are in a similar position of not having sold. Only thing I would say is if you plan to use an agent to let then take 10-15%(+vat) out of the rental income before you start. Also if it goes unoccupied you'll have to find that money, plus council tax (at 90%), water and utilities.

MissChief Mon 05-Jun-06 11:04:07

Hi Lizs - thanks, are you thinking of doing sth similar then or will you wait it out?

LIZS Mon 05-Jun-06 11:06:56

Depends if we find somewhere we can't afford to miss. We have rented ours out before but it is a hassle we could do without and we have about 60% equity tied up in it.

Pruni Mon 05-Jun-06 11:12:07

Message withdrawn

MissChief Mon 05-Jun-06 11:35:39

so pruni, have you got 2 "ordinary" mortages then?
sorry, if I'm being thick but thought this wasn't possible?

MissChief Mon 05-Jun-06 11:58:27

lizs - if you've got 60% equity it shouldn't be such a gamble to remortage etc should it?

Pruni Mon 05-Jun-06 12:01:09

Message withdrawn

LIZS Mon 05-Jun-06 12:02:22

No but it would cost more than we pay at present as we would have to pay a higher rate on a 2nd mortgage. Swings and roundabouts I suspect!

Orinoco Mon 05-Jun-06 21:17:48

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blueshoes Mon 05-Jun-06 21:49:23

Don't know if still just applies but when I was researching this 1-2 years ago, my mortgage adviser said Intelligent Finance would allow you to run 2 mortgages without insisting on buy-to-let ie they would let the first mortgage run in the background.

Orinoco Mon 05-Jun-06 21:58:15

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blueshoes Tue 06-Jun-06 09:03:16

Thanks for clearing that up, Orinoco. Being able to afford 2 mortgages, even "technically", is a big catch though, lol!

Beetroot Tue 06-Jun-06 09:06:17

what about renting yor house out and then renting somwhere else?

We were all ready to do this when our house sold and we had to be outwithin a month. But we rented for 6 months.

Beetroot Tue 06-Jun-06 09:06:55

or buying a smaller house that you can eventually rent out when your house has sold and you can move to a bigger one??

MissChief Tue 06-Jun-06 12:03:33

thanks -all food for thought. Beetie = you had to be out within a month ? muhst have been a nightmare!

Beetroot Tue 06-Jun-06 12:04:17

tbh, i was so releived to sell that i didn't mind. we just put most of it in storage and rented for 6 months

MissChief Tue 06-Jun-06 12:07:23

IKYWYM - right now I'd happilymove into a tent if it meant we;d sold! Glad it worked out anyway!
will check out diff mortgages now.

Beetroot Tue 06-Jun-06 12:08:21

moneysupermarket is meant to be good

essbee Tue 06-Jun-06 12:14:03

Message withdrawn

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