new future together

resi

Dear all
I am at a bit of a loss as to what to do next.
when I moved into my cottage it was perfect for me as it was small and cosy. unfortunately, or very much fortunately, now my partner has moved in and we are crammed!

we have decided to start looking what is available with an idea to move to a bigger place.

I own my place with a mortgage with remaining £34000 to pay. Mortgage is with the Cooperative Bank. it is a fixed rate for 5 years ending 2013 (silly I know but it seemed a good idea at the time...)
as it is in a university town I could rent my cottage for £550 a month.

I also have about £7k savings, this was from sale of previous house and what is remaining from paying off maximum allowed each year on the mortgage.

My partner owns no property but has about £30k savings.

what advice have you got for our future together (house wise!) should i rent my place or should i sell?

the properties we are considering are in the region of £170k. is something we can afford?

I earn about £23k whilst my partner only about £16k.

help and advice welcome.

many thanks, Resi

RobHolyhead

Hi,

Didnt want to read and run!

Based on your wages a bank will willingley lend you both 5 times your wage and 2.5 times your partner wage, atleast that was what the maximum was when i baught my house so you should be looking at housed around 155k putting down a mimimum 10% diposit of 15k which will eat away at your savings!

When it comes to selling or renting i thaught about renting but the strain of being responsible for the house your renting and a new house was too much for me, all you need is the boiler to go in the house you rent out and then you have a £1000 bill to foot! theres also travel to collect the rent, repairing any damage any tennents make, your basically soley responsible for the state of that house. Things you mite stall on if you were living there have to be done immidiatley as you have a right to keep the house in good shape for your tennent!

Its a lot to mull over personally i decided ageinst it!

Rob

getmore4less

resi wrote: »

Dear all
I am at a bit of a loss as to what to do next.
when I moved into my cottage it was perfect for me as it was small and cosy. unfortunately, or very much fortunately, now my partner has moved in and we are crammed!

we have decided to start looking what is available with an idea to move to a bigger place.

I own my place with a mortgage with remaining £34000 to pay. Mortgage is with the Cooperative Bank. it is a fixed rate for 5 years ending 2013 (silly I know but it seemed a good idea at the time...)
as it is in a university town I could rent my cottage for £550 a month.

I also have about £7k savings, this was from sale of previous house and what is remaining from paying off maximum allowed each year on the mortgage.

My partner owns no property but has about £30k savings.

what advice have you got for our future together (house wise!) should i rent my place or should i sell?

the properties we are considering are in the region of £170k. is something we can afford?

I earn about £23k whilst my partner only about £16k.

help and advice welcome.

many thanks, Resi

Whats you place worth?
Whats the interest rate and the follow on rate?
Whats the exit penalty?
Is it portable?
IS the lender known for giving concent to let?

Do you like where you are What space is it you are lookng for?

can you create space, loft ,garage, garden room

resi

getmore4less wrote: »

Whats you place worth?
Whats the interest rate and the follow on rate?
Whats the exit penalty?
Is it portable?
IS the lender known for giving concent to let?

Do you like where you are What space is it you are lookng for?

can you create space, loft ,garage, garden room

sorry did not receive an acknowledgement of your reply!

so: the current house is worth £130k and mortgage left is 34k
interest rate is 4.6% fixed til 2013 not sure of follow on - but huge i am sure
exit penalty was 5k
yes moved to here last time i moved
yes i can rent as mortgage is little...
no can't expand as all expanding has been already done

where i live is convenient for work but very few property coming up also we have access problems which is gettin to my nerves i admit...
and i am looking for a min 3 bedroom house in a newer area closer to my partner's family. what i look for there is about 230k.

thanks for the reply!
ttfn, R

Annisele

So: between you you have savings of £37k, equity in your house of about £85k (taking into account redemption penalties/selling costs plus a dose of pessimism), and a joint salary of £39k, and you're looking for a new property in the region of £230k.

If you sell your house and buy another, you'd need a new mortgage of around £108k, which should be do-able with your joint salary.

If you *don't* sell your house but buy another anyway, you'd need a new mortgage of around £193k - five times joint salary - which you might struggle to obtain. You'd also still have to pay your old mortgage, which might be a problem if you get nightmare tenants.

Is it an option to let out your current house, and rent a larger one with your partner?

dimbo61

5 year fix at 4.6% is not silly but good planning
Taking on 5X salary in todays climate is not a good idea so how about selling up and taking old mortgage to new property and borrow the rest at 3.99% (5 year fix from Coop)
See a good solictor to draw up agreement as who put what share into new property ( just in case)