To sell or not to sell?

Paul_O'Kshields

My partner and I are renting, living on the south coast, after a relocation.

We have just had an offer of 173k accepted on a house.

Our combined income is (c) 45k.

We have 25K deposit.

We also rent out the flat we used to live in, which is in Glasgow, which is mortgaged for 63k and would probably sell for about 125k.

We have spoken to a mortgage advisor and have had so many different permutations and options put before us that both our heads are now spinning.

My worry is that with two mortages, we would be a bit stretched if things were to go in any way pear-shaped.

We cannot decide whether to continue to rent out the flat, or to sell it, to reduce the mortage on the place we intend to move into, to make it more affordable, (although it is technically "affordable" with the deposit we have and based on our income multiples, is this desirable?)

What would any of the wise heads on this forum do?

PS: sorry if any of this comes across as smug to people who may not have so many options and are thinking "Well, bully for you, mate." It is the number of options that is freaking me out.

lynzpower

I would definately sell the glasgow flat.

I am not an expert in these matters, but as far as I see it the less interest you pay to a mortgage lender, the more moneysaving you are. the higher the deposit, the less mortgage, the less interest you waste.

Additionally, if you can have your mortgage for a shorter term or over pay it too that would be great moneysaving.

just my opinion

seraphina

I'd sell the flat.

You're not close enough to do hands-on landlording, so I imagine you would either be spending a lot in agency fees or you might be in the situation of having to fly up to sort something out. Having that extra amount to chuck at your new mortgage would make a lot of difference, whereas I don't think the returns on the rental property would be that great.