Buying new house renting our old house

Sallys_Savings

This question may sound really silly but I havent a clue about buying/selling/renting/mortgages.

We brought our house 22 years ago ( three years left on our mortgage :j )

We now wish to sell our house to buy my fathers house (as hes moving). We really want to make a move really quick otherwise my father loses the bungalow he wishes to buy. (He has decided that if he loses this bungalow he will not move). However everytime we find a buyer for ours its falling through

A friend suggested to us that perhaps we could rent our home out that we have now and get a new mortgage for my fathers but then someone else suggested to do the opposite............to use the funds from our house to pay for my fathers and then take out a new mortgage for the house we have now.

Our house was valued at £158,000 and my fathers £170,000.

I am finding this all so confusing ...nobody would guess that when I worked pre children it was accounts lol

I hope you all can understand what I mean.
If anyone could give us a few options we would really appreciate it.
Many thanks

joepubli

Get a mortgage on your current house and use the money to buy your father's house. That way the intereest you pay on your house can be offset against the rental income. Otherwise you will py tax on the rental income.

Hope it help
Joe

herbiesjp

There could be a couple of ways of achieving your aim here, but it would need a lot more information about your individual circumstances.

I would suggest having a word with a whole of market adviser who would be able to listen to your exact situation and come back with schemes to suit your individual scenario.