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Sell Now and Rent or Hold on?
Matty0682
Posts: 119 Forumite
I am relocating (London to Wales) in Sept 2010 to start a new career. My dilemma is that I own a house and not sure what to do as I will be forced to sell anyway. I can either:
1) Sell next yr when I plan to move and buy in Wales
2) Sell now and incur an Early Repayment Charge on my mortgage of £6k (3 years tie-in period remaining), move into rented
With option 1, I will still be exposed to a falling housing market
With option 2, I will pay the £6k ERC, then move into rented accommodation until the housing market bottoms-out and re-buy (also increased flexibility)
I just wandered what everyone else would do (purely on a financial basis). Renting the place out is not an option
Thanks
1) Sell next yr when I plan to move and buy in Wales
2) Sell now and incur an Early Repayment Charge on my mortgage of £6k (3 years tie-in period remaining), move into rented
With option 1, I will still be exposed to a falling housing market
With option 2, I will pay the £6k ERC, then move into rented accommodation until the housing market bottoms-out and re-buy (also increased flexibility)
I just wandered what everyone else would do (purely on a financial basis). Renting the place out is not an option
Thanks
0
Comments
-
Will the ERC still be 6K in Sept 2010?
What the house worth, how much outstanding on mortgage? Whats your monthy mortgage payment. How much will you pay on rent per mnth? can you stand to rent a really small place to save money?0 -
Will the ERC still be 6K in Sept 2010?
What the house worth, how much outstanding on mortgage? Whats your monthy mortgage payment. How much will you pay on rent per mnth? can you stand to rent a really small place to save money?
The house is worth £250k, mortgage is £200k. Repayment mortgage is £1,150k PCM, interest is £850 of this. If I were to rent a similar place, it would cost more than the interest proportion, prob abour £1000 pcm.
The amount I would save by renting a cheaper place is nominal really. I am more concerned about the fall in the value of my house if I hold onto it until last next year.
I have 3 years left on my mortgage, so ERC still applies next yr.0 -
Put my house on the market yesterday. Still no idea what to do
0
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