Should we go into rented?

[InTheCludgie]

We have just found a buyer for our house this week and they offered a better price than we hoped for, which is fantastic. We're looking to move from this 2 bed to a 3 bed within our current area as our kids (DS13 and DD8) are settled in schools here. Kids are sharing and desperate for their own rooms.

However, where we live is highly in demand due to the good schools and houses can go for silly money at times due to that. We've so far lost out on five houses, two as other buyers were more procedable and other times as our offer wasn't the highest one.

I'm currently a student and graduate in May next year, should get a job quick as the area I want to work in struggles to recruit. We're limited in what we can borrow atm due to my student status but we have a deposit of about 210k due to two lots of inheritances.

We're not getting pressure from our buyer yet but we're debating if going into rented would be an idea. However, two things are stopping us - we have a fixed rate of 1.19% which our lender has agreed to port (£87k left on mortgage, borrowing an extra 13 k on top of this), we will lose that if we end up renting and there are still three years on it. Also, we have a cat and I know most landlords aren't keen on pets.

The upside would be we don't lose the good offer on our house and we become more attractive to vendors. We would have a bit of a bigger budget next year too by the time the rental term is up. WWYD?

Rentals are usually 12 months but I found alot of landlord who would break at 6 months. So if you do find somewhere and break before the 6 months you still owe the rest of the rent.

Your ported mortgage might still be valid after 6 months

You could call a few local estate agents and ask whether many they have on their books have a 6 month break clause.

I know some people who have moved in with fam for a short time whilst they found their next house when there was a gap between selling and buying but not sure if possible here. With some banks you are allowed to sell and pause your mortgage and then port your old lower rate when you buy the next place if within 6 months or something like that, so worth double checking the terms and conditions!

Most rentals I find are 12 months term. Ideally you find a house to buy, otherwise I guess rent, as house prices are dropping so you might save money by waiting a while to buy. So many variables to factor in. I’d do a spreadsheet!

@Tryingtokeepcalmandcarryon staying with family is a no-go I'm afraid. But the porting hold sounds interesting, I'll look it up.

So we are viewing a house later today and another one on Wednesday, I hope one of them will be the one for us.

Had a call from my solicitor to say that my buyer is remarketing her flat, her own buyer couldn't get the mortgage they wanted. Not ideal but guess it gives us a bit of extra time while they sort things out at that end.

OP you should just be aware, that as your buyer’s buyer has fallen through, you will no longer be considered proceedable… waiting for someone new to buy theirs is the same as waiting for someone to buy yours.
so don’t be disillusioned if you still get your offers rejected… you will only be considered as ‘proceedable’ once the bottom of the chain is complete and solid. Good luck!

I’ve just had my own chain fall through , as my buyer’s buyer pulled out…. We were about to go into rented (we have to be in the new area out of necessity), and then the day after I paid my rental deposit we sold and got a new buyer! Murphy’s Law!
but so much happier to be buying than renting…

Just an update...my buyer has managed to secure a new buyer, FTB which is fab. We planned to offer on the house we viewed on Monday however someone got in there with a very high offer which they accepted.
We viewed another house last night and have put a note of interest in on it. It looks likely to go to sealed bids as someone else has also put a note of interest in. No other properties on atm so hopefully something comes of this one.

Ah that's good news, good luck!