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What would you do?
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moneybunny123
Posts: 538 Forumite
This is quite a long and complicated scenario.
We have 2 properties - one is our home (mine and hubby's); the other is currently my home (well, only MY name is on the mortgage) and we rent it out. The house is only 75% owned by me though - it was bought under a shared equity scheme, and when I couldn't sell it the developers granted me permission to rent it out. However, I've just had it valued and the developers have come up with a very affordable settlement fee for their 25%. (I will, however, be putting hubby's name on the mortgage too though for because I doubt the bank will lend me a further amount due to me now only working part time).
OUR home (the one we live in) is currently on the market. We have an offer on it and, should it all go through in the next month or two, we will be sitting on quite a bit of equity that we intend to put in the bank until the home that we want to live in is built (but this wont be for another year).
Meanwhile, until our new home is built, we'll move back into the house that I rent out (that also has a lot of equity - which is why we also want to sell this house too). Therefore, we intend to move back into that, do it up, then sell it on as quickly as possible.
We could use the equity from our home to pay off the developers (assuming the sale of our home all goes through on time). If not, and the buyers pull out, the way I see it is I either go to the Halifax (my current lender on the rented house) to borrow the money I need to pay off the developers - OR i borrow from elsewhere, pay off the Halifax (including their Early Repayment Charge) and husband and I continue with that mortgage until the 2nd (rented out) home sells. The problem with staying with the Halifax are their extortionate interest rates. (I am booked in to see them later this week, and will weigh up whether it's cheaper to stay with them, or move elsewhere and pay the ERC)
But our biggest dilemma is this: Do we pay off the entire mortgage on our 2nd (rented out) home as soon as we can (i.e. when our 1st home sells), or do we continue to pay a mortgage knowing that we can transfer it to our next home when it's built? Hubby is very scared of interest rates rising before our next home is built, and if we get a mortgage now and tie in for 5 years, we'll be ok.
We're really not sure what to do for the best.
We have 2 properties - one is our home (mine and hubby's); the other is currently my home (well, only MY name is on the mortgage) and we rent it out. The house is only 75% owned by me though - it was bought under a shared equity scheme, and when I couldn't sell it the developers granted me permission to rent it out. However, I've just had it valued and the developers have come up with a very affordable settlement fee for their 25%. (I will, however, be putting hubby's name on the mortgage too though for because I doubt the bank will lend me a further amount due to me now only working part time).
OUR home (the one we live in) is currently on the market. We have an offer on it and, should it all go through in the next month or two, we will be sitting on quite a bit of equity that we intend to put in the bank until the home that we want to live in is built (but this wont be for another year).
Meanwhile, until our new home is built, we'll move back into the house that I rent out (that also has a lot of equity - which is why we also want to sell this house too). Therefore, we intend to move back into that, do it up, then sell it on as quickly as possible.
We could use the equity from our home to pay off the developers (assuming the sale of our home all goes through on time). If not, and the buyers pull out, the way I see it is I either go to the Halifax (my current lender on the rented house) to borrow the money I need to pay off the developers - OR i borrow from elsewhere, pay off the Halifax (including their Early Repayment Charge) and husband and I continue with that mortgage until the 2nd (rented out) home sells. The problem with staying with the Halifax are their extortionate interest rates. (I am booked in to see them later this week, and will weigh up whether it's cheaper to stay with them, or move elsewhere and pay the ERC)
But our biggest dilemma is this: Do we pay off the entire mortgage on our 2nd (rented out) home as soon as we can (i.e. when our 1st home sells), or do we continue to pay a mortgage knowing that we can transfer it to our next home when it's built? Hubby is very scared of interest rates rising before our next home is built, and if we get a mortgage now and tie in for 5 years, we'll be ok.
We're really not sure what to do for the best.
0
Comments
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What rate of interest do you pay on the mortgage for property no 2?0
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I'm currently paying 5.09%.0
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