Poor house purchase decision

tyllwyd

About whether to overpay mortgage or build up savings - personally, since you say your job is not as secure as you'd like, I'd probably keep more of it as savings at the moment, because that is more flexible if your circumstances do change. You can always pay it into your mortgage in the future when things have settled down, but it is difficult to go the other way and get the money back out again when it's gone into the mortgage.

blizeH

Thanks twllwyd - I think you're definitely right on that. I'm going to concentrate on savings from now on and not worry about the mortgage (unfortunately I've already paid a little bit off, but not enough to make a huge impact)

I was also thinking that realistically, due to the circumstances I'd probably need to move in quite a short period of time - that means selling my house before I move is pretty much out, and therefore buying a place in London is pretty much out too any time soon. I'll need to find a place to rent in London for a year or so maybe, and if I like it, then think about buying, and in the mean time try to sell my house... glad to have things clearer in my head now though so thank you very much guys. Savings -> rent a place in london -> sell my house -> buy a house in london (if I like it there of course, which I think I shall!)

blizeH

Just thought though, if I rented it out, it'd be for 6 months right? Meaning I'd be back in a similar position of having to rush through and try and sell my house, and buy another in a short time, hmmm!

How's this for a plan?

Save up as much money as I can -> Put house on market -> Rent place (or even just a room somewhere?) -> Sell house -> Use interest towards rent, eventually buy house.

Any particular gaping flaws in that? I really am quite clueless unfortunately... sorry

GDB2222

blizeH wrote: »

Just thought though, if I rented it out, it'd be for 6 months right? Meaning I'd be back in a similar position of having to rush through and try and sell my house, and buy another in a short time, hmmm!

How's this for a plan?

Save up as much money as I can -> Put house on market -> Rent place (or even just a room somewhere?) -> Sell house -> Use interest towards rent, eventually buy house.

Any particular gaping flaws in that? I really am quite clueless unfortunately... sorry

Seems a fairly good plan. Your house is going to be costing you several £,000s a year to keep empty. Plus you will be paying rent in London. Plus you are going to have problems with insurance if the house is empty. So, a better plan is to stay living there until you've sold it. You might want to price it pretty keenly so it sells in what is currently a rather difficult market.

You could rent it out until sold, but tenants are not necessarily cooperative about viewings etc.

hazyjo

Have you got a mortgage deal at the moment? You'll incur penalties if you back out early*. Also, can you rent it out only 6 months after buying it? I'm not sure... If they'd have originally given you a BTL mortgage, maybe. If not, probably not as surely it'd be seen as a bit of a fiddle, to get a 'normal' mortgage first and switch it within 6 months?

Questions, questions... as I've said before, I'm no expert, but these are things I'd be considering in your shoes.

Also, if you sell you house now, don't forget some lenders won't lend on something that's been owned for less than a year (or so, sometimes 6 months, I believe) by the current owner.

Jx
*You might not incur penalties if you move the same size mortgage (or more) somewhere else. Is it transferrable?

WalkinX

If it's an ok commute to London then I'll take it off your hands for a knock down fee

blizeH

Thanks GDB - staying there until the house is sold may not be an option, depending on my circumstances with the potential place in London... kinda complicated and hard to describe, but I'll see how it goes. I didn't realise leaving it unoccupied would be such a problem but thinking about it yeah, from an insurance point of view not good!

And thanks hazyjo - reckon it's worth me contacting my mortgage lender (I somehow got onto very good terms with the girl who got me the mortgage and we quite often exchange emails back and forth!) just casually what my options are with regards to if I wanted to end the mortgage early if I sell the house, or transferring it to another place in London, or potentially if I wanted to rent it out even? Or would that just raise alarm bells from there end and give me grief?

blizeH

Quick bump before I contact my mortgage advisor!

(also apologies again for a lot of my ignorance in all of this... cheers)