Mortgage Debate ;opinions pls

PaisleyPPL

Hi folks ,

Having a wee debate here between my partner and i ,looking for some extra opinions ,so heres the dilemma :

We are looking to move as we are graduating from uni this year (wooohhooo).Our debate is over whether to sell our property(and boogie on outta here ) or to rent the place out (whilst still booging on otta here lol) >When giving your thoughts pls be aware we havent got much cash and to be honest have been abit foolish in the past with cash ,we have pretty bad credit ratings but have no debt (other than mortgage stuff) and are current with NR with a together mortgage (i know iknow stupidty at its worst ). So Here goes

Our Current Situation :

Mortgage :£48,831 Unsecured Loan :£11,652 paying about £427 (including insurances ).

Have spoken to NR today they've said if we want to sell we can keep secured loan with them at a rate of 9.79% .Recent property sales in our area have been from £58,000+ .

My plan :Sell the place ,keep the secured loan ,either refinance later or over pay loan .By doing this we can then rent somewhere else when me move ,no hassel no fuss ,this time save for deposit and buy another place when we have about 20-30k saved up .

Partners Plan :Rent place out (assuming we get consent to let ,to me abit ifffy whether they would agree) ,move to rented accomadation when we relocate ,hope to god we can find someone to rent out quickly ,and sell in a few years .However this means staying on NR's SVR rate ,as we probably are not gonna be able to re-mortgage

So there it is folks ,hope i explain everything ok ,personally i wanna jump ship ,and set up somewhere else no ties ,he wants to hang on to the old place hopin to make alittle cash

wot to do ????????????????????????????????????????

_Andy_

Personally I'd sell up. Things to think about if you're renting it out would be - what happens if you've got no tenants; how are you going to finance maintenance of the property etc.

PaisleyPPL

well that is one of my worries altho ,as we are relatively debt free i.e no credit card or other debts (excluding mortgage ) we would probably be able to find the cash ,but would leave us pretty skint as we will be on graduate salaries ,especial as it is looking like rent in dublin will be around 900 euro a month

getmore4less

What sort of rent can you get for the place?

PaisleyPPL

rent is around the £400 mark in our area ,its only a small 1 bed place ,10mins walk from uni

getmore4less

£400pm on a £58k house is a gross yield of 8.2% which is ok(ish) normaly you would want around 10%.


Presumably if you keep the mortgage the rate on the unsecured loan will be lowere efetivly adding a bit to the yield.

I think it is worth investigating further but do think carefully about becoming landlord especialy if you plan to move away.

Lender may not be happy to give concent to let which may make it a non starter.

Gorgeous_George

I'd sue the uni. You cannot sell the place and keep a secured loan. What would it be secured against?

I like my Landlord's duties but please do not think for one minute that this is an easy option. One bad tenant could cause lots of hassle - and you could be bankrupt.

Somewhere near £460 per calendar month would make it interesting. You could probably use the unsecured loan in addition to the mortgage for tax purposes (to offset income) but you'd need to confirm this with a qualified tax adviser.

GG

PaisleyPPL

sue the uni ??????:cool:

i must have written that wrong sorry its an unsecured loan lol