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OK so the next option in our moving house saga

10 replies

OrmRenewed · 05/04/2010 12:42

Has anyone rented out their exisiting house and bought a new one? How does it work? Is it a good idea?

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Fimbow · 05/04/2010 12:46

When we were trying to sell our house about 3 years ago, we were given the option of a "let to buy" mortgage. Just trying to remember now how it worked..

OrmRenewed · 05/04/2010 12:48

Aha! Thanks fimbow. Will google that,

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Fimbow · 05/04/2010 12:48

explanation

Fimbow · 05/04/2010 12:48

We didn't take it up as we managed to sell.

bronze · 05/04/2010 12:49

We have but only with financial support from the inlaws. It was very stressful and though we desperately need to sell again (dh going to work away til we do) I would never do it again

OrmRenewed · 05/04/2010 12:50

Great fimbow, thanks.

Will show DH as he is sceptical

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MillyMollyMoo · 05/04/2010 13:18

Is it in your long term plan of action ? And do you have 25% equity in the current property and 25% to put down as a deposit on the new one.
And most importantly are you prepared to be a landlord, what if you have voids can you cover both mortgages, what about repairs ?

Ihatebeingfrugal · 06/04/2010 00:39

We did this 3 years ago and still have tenants in our old house.The main difference now is that the deposit is much higher than it was then. Basically we remortgaged on a buy to let mortgage. We paid off the existing mortgage, and took a chunk of equity to use as deposit on our new house. This was obviously when house prices were higher and pre credit crunch!We were lucky as the tenants moved in a week after we left the old house and are still there.Originally we had letting agents to collect rent etc. but have managed the property ourselves for the last year. If you get good tenants it really doesn't take much time or effort to run it. The problems occur when rent isn't paid or is paid late, so always best to have a contingency to cover a couple of months rent.It helps if you have electrician/gas/plumber contacts if repairs are needed. You are also responsible for buildings insurance and you will need to have a corgi (it's not Corgi now but I can't remember the new name!) gas check yearly. Hope this helps

kickassangel · 06/04/2010 00:55

look into this carefully - 18 months ago we were going to do this, had it all arranged with our existing mortgage co, paperwork signed & they had agreed it.

then we phoned up to confirm figures & they had decided to pull ALL buy-to-let mortgages off the market, even those that had been approved, and we therefore couldn't do it - even though we had over 95% equity on the house.

mortgage co.s are being vv difficult nowadays - it may have improved since we tried to do it, but you may need a specialist broker to look at products that are off the high street.

good luck!

OrmRenewed · 06/04/2010 10:43

Thanks everyone.

It is just another option. We need to look at all possibilities.

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