To sell or rent?

Virtual_Chrissy_Wissy

We have just renegotiated our mortgage and have decided to go on BMR (for now) @ 2.5%. As we are long standing customers of our lenders we can go back on to a fix at any point. We have 48K debt remaining. We are now in a quandry as we have approx 240K in savings to put down on a new place and are not sure whether to sell our current house (in an unfavourable market but obviously good for buyers) or rent it (with an extra landlord rate of 1.5% on top for that part of the debt deemed as buy to let). There is also the aggro aspect to this of having a nightmare tenant at some point. The portable product means we can put the new property on it but at a rate to be decided at the time of moving. Any advice would be most appreciated! I would imagine that in our areas of choice we would be lucky to get a decent 3 bedroom property for £300K.

Thrugelmir

and are not sure whether to sell our current house (in an unfavourable market but obviously good for buyers)

Good for sellers that can realise the equity now as well. Nothing to suggest that house prices will "boom" again in the near future.

opinions4u

Virtual_Chrissy_Wissy wrote: »

We have just renegotiated our mortgage and have decided to go on BMR (for now) @ 2.5%. As we are long standing customers of our lenders we can go back on to a fix at any point.

Assuming they have a suitable fixed rate available. They don't have to have.

We have 48K debt remaining. We are now in a quandry as we have approx 240K in savings to put down on a new place and are not sure whether to sell our current house (in an unfavourable market but obviously good for buyers)

What makes you think it will be more favourable in the short to medium term?

or rent it (with an extra landlord rate of 1.5% on top for that part of the debt deemed as buy to let). There is also the aggro aspect to this of having a nightmare tenant at some point.

I think the "aggro" potential will make your decision for you! Personally I'd sell.

The portable product means we can put the new property on it but at a rate to be decided at the time of moving.

That's an odd portable product? Not sure I understand it.

Any advice would be most appreciated! I would imagine that in our areas of choice we would be lucky to get a decent 3 bedroom property for £300K.

It's cheaper up north!

getmore4less

Virtual_Chrissy_Wissy wrote: »

We have just renegotiated our mortgage and have decided to go on BMR (for now) @ 2.5%. As we are long standing customers of our lenders we can go back on to a fix at any point. We have 48K debt remaining. We are now in a quandry as we have approx 240K in savings to put down on a new place and are not sure whether to sell our current house (in an unfavourable market but obviously good for buyers) or rent it (with an extra landlord rate of 1.5% on top for that part of the debt deemed as buy to let). There is also the aggro aspect to this of having a nightmare tenant at some point. The portable product means we can put the new property on it but at a rate to be decided at the time of moving. Any advice would be most appreciated! I would imagine that in our areas of choice we would be lucky to get a decent 3 bedroom property for £300K.

Long standing counts for nothing and portable means potentialy portable, you will get reassessed for any new house/lending.

sell/rent depends on the yield that is the key point missing from the post.

Whats the gross ield likely to be on a sensible valuation(net proceeds if you sold).


You have £240k saved so need at least another £60k + costs say £10k will thisbe an issue on salary mutiples? (probably not)

So you will be lookng at around £120k total lending if you rent, much less if you sell.

Depending on the value of your cuurent place you may be able to offset mortgage interest upto that full value against the rental income.

missile

I would suggest for you it is swings and roundabouts. What you loose on your current house you save on the next purchase. I do not regard the property I live in as an "investment".

By all means try buy to let, but please do not underestimate the potential risk or overestimate the potential return. In my view it is not as profitable as it once was. I have only one BTL property left and wqill sell that as soon as I can.