sell? Or buy to let

Jadedlion

Right having trouble making big choice of whether to sell flat or keep it and borrow additional funds for new home I'll give you some figures can you give me your opinions on what's best for us. I've had so much differnt advice that I'm totally confused about what to do

Right flat with home report value of £115,000 outstanding mortgage of £65,000

Want to purchase new home for £150,000

So was thinking borrow additional £20,000 on flat for deposit on new home I.e for a new mortgage of £130,000 and move flat mortgage to buy to let for £85,000

Or should we hold off and try to sell incurrent Market where at most I think we would get £105,000 at very most but as we want to buy bigger home now while good deals can be had should we rent??

Any thoughts, words of wisdom greatly appreciated

silvercar

Can you get a BTL mortgage with only 25% deposit? I bet the rate would be high.

On top of that you would be looking for a residential mortgage with LTV of over 85%, again you will pay a high rate to do that.

Have you money aside to pay both mortgages if a tenant can't be found immediately or falls behind with the rent.

Do you have enough income to justify a mortgage of 130k and will the rent cover the payments on the BTL mortgage and leave enough aside for maintenance, gas certificates, insurance etc.

Remember you will be maintaining two properties.

If the answer to all my questions is "yes" then its worth considering, otherwise I would sell the flat.

theartfullodger

And only go ahead if you are confident that house prices won't drop & you can cope with serious increases in interest rates...

You know what happened last time a Conservative Government came in??

Cheers!

Lodger