Can anyone give me some property advice please :-)

charlie2000

Hi.

I am currently looking to rent my 1 bed flat out so myself, my husband and 2 year old son can rent a bigger place, as i dont think we will be able to get a mortgage with our current situation.

We do not have much of a deposit, i have a 95% interest only mortgage and looking at other properties in my area i will not get enough equity to move, also my husband has just finished his iva so we have money to save now but we need to get out asap as my son needs his own room and a bed, which we cannot fit in out flat at the moment.

VIGILANT22

What is your question?

beecher2

I'm not sure what you're asking to be honest.

charlie2000

Sorry i just wanted some general advice on what the best thing to do with my property. Not a specific question as such.

VIGILANT22

Husband recently discharged fom IVA...Wont qualify for a remortgage/new mortgage for some time.
Consent to Let...depends on lender particularly as LTV is so high
Rent out property...What happens in a month if you have no tenant/no rental income... but still need to pay the mortgage as well as your rent
95% mortgage....possibly in negative equity now

You need to think things through and see realistically what options are open to you..pls dont bury your head in the sand & feel no help is available....agencies like CAB & Shelter are there to support you.....

beecher2

Personally speaking, I'd sell the flat.

TrickyDicky

Sell the flat, rent somewhere bigger.

What happens the month when the tennents refuse to pay the rent or the boiler breaks down? thats alot of money you're going to have to stump up to get things fixed!

VIGILANT22

yes...but if this is a 95% IO mortgage...(she states she has insufficient equity to move) the OP could very well be in negative equity

Dan_1976

They should look into selling before renting. If they own the property they will not get social housing help so its either sell and rent then apply for help or rent out and rent privately.

Saying that we have assumed they need assistance, they may earn more than enough to sell or rent out and go private.

VIGILANT22

As husband has just come out of an IVA, can't imagine funds will be plentiful..

Dan_1976

Why not, know somebody who is about to enter one and he earns a lot of money.

IVA's are not about what you earn but what you owe. People who earn good money can be as reckless with credit as people who dont.

I know bankruptcy is different but there was a saying that only the rich go bankrupt.