To sell or not to sell

subarurocks

We have a repayment mortgage on a flat we let out, approx 95% LTV left, fixed period ended in jan, also have a second property in which we live, this is fixed for 3 years and 85% ltv. The rent from flat is 725 per month and current repayment is 650, with variable interest at 4.89%. We are worried as to the news of interest rates hikes on the way and would make our repayments really high. We dont have great savings to get a fixed deal. What would you recommend. should we sell the flat now or wait and see how the rate go.

Jenniefour

Would you be able to afford to contribute towards the mortgage if needed? And have you put possibilities into a mortgage calculator? Part of the difficulty right now is how hard it is to sell, with flats being harder because of the first time buyer mortgage squeeze. So if you sold would you be willing to take a loss on it - with so little equity and the expenses of selling ityou may not be able to recoup enough money to come out on top. And you might be wiling to take a hit on sale to have peace of mind and certainty. But the expense and uncertainty of keeping it, like increased service charges, some work needing to be done in flat or a void period, might make selling it a more attractive option.