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letting out our flat - mortgages.
chocoholic1_2
Posts: 31 Forumite
We are relocating due to jobs in 5-6 weeks. Due to the current climate we were planning on letting our flat and renting a new one in Chester, with the intention of selling up in 12 - 18 months, when we have a secure contract.
We have an appointment to see the bank tomorrow about changing the mortgage to buy-to-let. The mortgage advisor rang today to give me a few details, he said there would be a fee of £1000. We would be switching from the standard variable rate of 3.5% to a fixed rate of 5.09%. It would be fixed for 3 years with a penalty if we leave before then.
What do we do? The rent we would get wouldn't cover that increase (although we do have savings). We don't want to let it for 3 years, and the £1000 fee seems extortionate.
I feel trapped by the bank. It's foolish to sell at the bottom of the market without buying somewhere new, (and we would sell at a loss given the work we've had done). We can't buy somewhere new without a permanent contract. And now renting looks like a rubbish idea too.
My OH wants to leave the flat vacant for 6 months, possibly taking a mortgage holiday, or just sell it anyway. I'm not convinced this is a good idea.
And do we need to tell the bank?
Help me please!
We have an appointment to see the bank tomorrow about changing the mortgage to buy-to-let. The mortgage advisor rang today to give me a few details, he said there would be a fee of £1000. We would be switching from the standard variable rate of 3.5% to a fixed rate of 5.09%. It would be fixed for 3 years with a penalty if we leave before then.
What do we do? The rent we would get wouldn't cover that increase (although we do have savings). We don't want to let it for 3 years, and the £1000 fee seems extortionate.
I feel trapped by the bank. It's foolish to sell at the bottom of the market without buying somewhere new, (and we would sell at a loss given the work we've had done). We can't buy somewhere new without a permanent contract. And now renting looks like a rubbish idea too.
My OH wants to leave the flat vacant for 6 months, possibly taking a mortgage holiday, or just sell it anyway. I'm not convinced this is a good idea.
And do we need to tell the bank?
Help me please!
0
Comments
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chocoholic1 wrote: »
And do we need to tell the bank?
Help me please!
Yes you do, but if you don't and then just arrange for your post to be re-directed, then the chances are they will never be any the wiser.
( I am not suggesting you do this, but many do and get away with it all the time )0 -
chocoholic1 wrote: »We are relocating due to jobs in 5-6 weeks. Due to the current climate we were planning on letting our flat and renting a new one in Chester, with the intention of selling up in 12 - 18 months, when we have a secure contract.
We have an appointment to see the bank tomorrow about changing the mortgage to buy-to-let. The mortgage advisor rang today to give me a few details, he said there would be a fee of £1000. We would be switching from the standard variable rate of 3.5% to a fixed rate of 5.09%. It would be fixed for 3 years with a penalty if we leave before then.
What do we do? The rent we would get wouldn't cover that increase (although we do have savings). We don't want to let it for 3 years, and the £1000 fee seems extortionate.
I feel trapped by the bank. It's foolish to sell at the bottom of the market without buying somewhere new, (and we would sell at a loss given the work we've had done). We can't buy somewhere new without a permanent contract. And now renting looks like a rubbish idea too.
My OH wants to leave the flat vacant for 6 months, possibly taking a mortgage holiday, or just sell it anyway. I'm not convinced this is a good idea.
And do we need to tell the bank?
Help me please!
Sell up and move on. Its a lot less hassle in the longer term.0 -
I was in a similar situation where I needed to rent my house but the fees attached were daft and my mortgage company had already hinted that they wouldn't allow me to. In the end I redirected my post and rented it anyway.
For me it was either this or get it repossessed.
As it happens it worked out for me and everything is ok. It is a risk though.
If you can sell it really is the best option in the end, at the very least the one with less headaches attached to it.:rotfl:0
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