HELP Flamming NR Redemption Costs Not happy

icecurtain

OK here is the dilemma…

Brought a house on residential mortgage which Northern Rock was happy, I am in forces so they let me rent it. I was posted away. (Small annual £100 fee)

Seen a house, I prefer due to increased family, but I must pay for it within 2 months.

I cannot sell original house as tenants are there for another 6 months.

If I sell in six months, I will have to pay redemption penalty of £10K. As I really want to transfer the mortgage. It is a 15 year Fixed at less than 5%.

What are my options because if the tenant left and I have not sold and I’m holding both properties, I cannot afford both mortgages?

My preferred options are:-

• Transfer in NR mortgage to my new house and get another mortgage short term (If that’s possible.) NR says no but spoke to a call centre.
• Get a temporary mortgage until the other house is sold then transfer the NR mortgage. (If that’s possible.) Will have to have little set up and redemption costs.
• Find some rich who really likes forces personnel who would cover the gap!
• Pay the 10K
• Keep both house and hope that is sells for the right price in the future. Nothing will go wrong and I will always have a tenant until the mortgage is paid off
• To hell will the new house just squeeze in.

Suggestion or solutions would be most welcome as I am confused a little..

david29dpo

Option 6. You have tenants and a redemption penalty to consider.

DVardysShadow

Pay your tenants to move on immediately, put the house on the market for a quick sale and hope.

Full of risk. Tenants may want a high price to move, you then lose rent and you may fail to sell or have to take a hit on your selling price, or with a low selling price you attract a wannabe buyer who doesn't quite have the financial clout to pull it off.

icecurtain

Thanks anyone else have any Ideas

poppysarah

You say sell house like it's as simple as just putting a sign out and voila! it'd be sold. It might take forever.

sell when you get the chance and see where life takes you.

Running_Horse

Is it possible to keep tenants in and use the rent to pay towards the new house? Someone at work has done this and now owns two houses.

bdl1brick

Prior to 2008 it would have be simple to just port the NR mortgage to the new place and then get a new no penalties BTL mortgage for the rental place. At the moment though I understand its impossible to get a no penalties BTL mortgage so you will need to pay out quite a bit when redeeming mortgage and you are going to need quite a bit of cash for deposits.

I'd have a word with the tenants and see if they are looking to move sooner or if they are planning to stay on. Get the place on the market as soon as you can based on what they say then find something else buy once you have agreed a sale so you can port the NR deal to it.

icecurtain

Thanks I have put things in motion to sell.