Mortgage Vs Rent

Ben_Gunn

I had a trawl through the site and could find nothing on this one.

I currently pay an interest only mortgage of 140K. I have 17 yrs left. I am 48yrs old and its a bit of a struggle on my income.

I'm thinking of selling and renting instead. Renting would not save a great deal in cash out but at least I'd not be going red all the time.

Any thoughts?

lisyloo

What rate are you paying on your mortgage?

Have you considered remortgaging to get a better deal?

What repayment vehicle do you have?

Ben_Gunn

Cant remember the rate but it works out at about £740 / month. Can't remortgage yet as self employed with insufficient books so self certified. NO REPAYMENT VEHICLE!!! Mad I know but the only way back into the rat race after a costly settlement.

lisyloo

It's a very tricky one.

A lot of people think of rent as "dead money" but mortgage interest is also dead money as well.

You would need to compare rent and interest but also take into acount that in rented accomodation you have no maintenance bills.

A small number of people are now "selling to rent" because they feel that prices will fall.
No-one can be sure but it certanly looks like the housing market is changing.

Another thing you have to bear in mind is the cost of getting back into the market again - solicitors fees, stamp duty, estate agents fees etc.

Not an easy decision at all.