Consent to let / interest only / second mortgage???

Hmmmm....

Hi guys,

My flat has been up for sale for 18months now with only one offer so far a good £10k too short.. We simply cannot afford to sell at less than our current mortgage balance.

So, we are seriously considering letting out our property to allow us to move on (only living in a one bedroom flat and have an 18month old boy so just not an option any more to stay here!!)

A mortgage advisor told us we should speak to our bank who currently provide our mortgage to ask if they would give us 'consent to let' on an interest only basis as we cannot afford to move to a buy to let mortgage. And in turn, this would allow us to get another mortgage - but would it all work?? Is this the only way we can go??

Any advice or suggestions would be much appreciated - have you been here or done this??!!

CloudCuckooLand

Are you already IO ? If not, the current basis but with a consent-to-let amendment might be more likely. Getting IO at all, may be difficult.

If you are, whats your Loan to Value ? Higher than 80% may struggle. They like to have some equity to play with, should the worst happen. I'd guess its 90% or worse, not selling within £10k...

If repayment, changing to IO might improve your finances to a point where you can take on another mortgage, but more likely I'd expect them to want to make it proper buy-to-let, to fully free up your income for the 2nd mortgage.

Where will your deposit come from for the new place ?

If you cannot afford a change to buy-to-let, how will you afford to purchase another property ?

Time to visit the DFW forum to trim expenditure etc...