private renting a house & renting ours out, can it be done??

kathy14

Hi all

Were in year 4 of our IVA, and its flown by!..Its a joint IVA and weve been good.

The thing is, i start university in September, and want to move closer to the area, quicker, easier and cheaper, and my son is getting in with bad crowds were we live....after just getting over cancer i want a fresh start....and to get my son away from these kids!! hes 13...(i know all teens are like this etc)

Anyway, my in-laws live in a nice village, not far from my uni, we was wonderin if we would be able to private rent out OUR house (which we have mortgaged) and WE private rent in the village??? Until were in a position in a few years to sell and buy new house in village (once released from IVA)

Weve found, the private rent is not much more than our mortgage.

Is this possible??? were desperate to move!!...it will be better for my health, for uni and my 2 little girls....and to get my son back on track, coz he is a good kid, just the wrong mates...(kids eh)

Am so desperate.....what do i need to do???

Nargleblast

Ask your IP - you have listed numerous reasons why you should take this step, you are in the fourth year of your IVA so are on the home strait, and it sounds feasible from a financial point of view - your mortgage will still be paid and you will still be able to pay your monthly IVA payment. Ask them, you have nothing to lose.

Charco_2

Be wary though that if your house you were renting out was o lie empty for a month or two you'd be in bother. Also, your mortgage provider would want to swap you to a "buy to let" or "let to buy" mortgage which would be a higher interest rate so dont tell them!

sharpee

Talk to your IP. It may be that they will give you 'Consent to Let' with a small fee.

I rented out my home, I have my Mortgage with Alliance & Leicester and they gave me Consent to let for a fee of £80 on my current mortgage arrangement.

Make sure you do the maths and make sure all the figures add up. Would you Manage the property or get in a Management Company (who typically charge 10% manangement fee plus around a months rent for finding a tenant)? Also who would you financially cope if the property was to stand empty for a few months?

It is possible, I've done it, but you carry the risk of having emtied periods plus additional costs.

Think it through and make sure your figures add up before you rush into it.