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Buy before I sell?
tmm_aka_tracy
Posts: 112 Forumite
Hi everybody, (sorry its long)
My kids have grown up and fled the nest. Sad as it is, it does mean that I can finally move away from this area - I moved here when I got married, and then wouldnt take the kids out of school or familiar surroundings just because me and ex were getting a divorce.
I tried to sell my house in 2007 - just as things started to go bad. After a year on the market I decided to take it off and re group my thoughts.
I have an offset mortgage with RBS. The house (a large 4 bed terrace with a loft conversion) is worth no more than £110k. My 'facility / mortgage' is currently at £62.5K, but in reality, I am £37K ahead of guide. In essence, I can access £37K with much ease. I also have an ISA with nearly £10K in it.
With the prices of houses sort of stabalising, I am starting to look at houses in a part of Manchester which I would like to live in. I'm currently looking at houses up to the value of around £130K.
Assuming I bought at £130, I would have say £40K to put down as deposit, leaving a £90K mortgage for the new house. In the meantime, my current house would be at full facility at £62K. RBS have already done the first tests, and with my salary and income felt that there wouldnt be a problem with an extension to my facility. I would be mortgaged at appx £150K, with houses 'valued' at £230K.
I could rent out the old house, but the problem with this is I cant claim tax releif on the mortgate payments under an offset facility.
Alternatively, I could do this, put the house back on the market, and if I sold it even at £100K would be in a similar position to my current one.
I really like the idea of having two houses, so that if anything happens to me the kids could have one each (LOL). But I'm really unsure what to do. I definately do not want to put my house on the market and wait for it to sell before I make a move.
Do any of you lovely peeps have any ideas?
I've become a little risk averse while bringing up the kids on my own but think that my situation is so strong now that I could afford a punt on a calculated risk????
My kids have grown up and fled the nest. Sad as it is, it does mean that I can finally move away from this area - I moved here when I got married, and then wouldnt take the kids out of school or familiar surroundings just because me and ex were getting a divorce.
I tried to sell my house in 2007 - just as things started to go bad. After a year on the market I decided to take it off and re group my thoughts.
I have an offset mortgage with RBS. The house (a large 4 bed terrace with a loft conversion) is worth no more than £110k. My 'facility / mortgage' is currently at £62.5K, but in reality, I am £37K ahead of guide. In essence, I can access £37K with much ease. I also have an ISA with nearly £10K in it.
With the prices of houses sort of stabalising, I am starting to look at houses in a part of Manchester which I would like to live in. I'm currently looking at houses up to the value of around £130K.
Assuming I bought at £130, I would have say £40K to put down as deposit, leaving a £90K mortgage for the new house. In the meantime, my current house would be at full facility at £62K. RBS have already done the first tests, and with my salary and income felt that there wouldnt be a problem with an extension to my facility. I would be mortgaged at appx £150K, with houses 'valued' at £230K.
I could rent out the old house, but the problem with this is I cant claim tax releif on the mortgate payments under an offset facility.
Alternatively, I could do this, put the house back on the market, and if I sold it even at £100K would be in a similar position to my current one.
I really like the idea of having two houses, so that if anything happens to me the kids could have one each (LOL). But I'm really unsure what to do. I definately do not want to put my house on the market and wait for it to sell before I make a move.
Do any of you lovely peeps have any ideas?
I've become a little risk averse while bringing up the kids on my own but think that my situation is so strong now that I could afford a punt on a calculated risk????
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