Anyone buy another house and rent the other one (-ve equity)

bingobangobongo

I was wondering if anyone here had bought and moved into another house while in negative equity on their current house and rented it out (a so called 'reluctant landlord').

If so - how did you find it? Are you glad you did it or is the rented house a burden round your neck?

I realise everyone's view will be subjective but I am hoping for some first-hand experiences on this so I can weigh up whether this is an option i.e. renting out my property which is probably £45k -ve equity and buying a new, more permanent home...

BitterAndTwisted

You're in debt and you're wondering whether it's a good idea to acquire even more?

hazyjo

If you have money for a deposit, which I presume you have, why don't you clear some of the current mortgage with it, maybe even eliminating the negative equity?

Jx

Caveat_Mortgagor

BitterAndTwisted wrote: »

You're in negative equity thanks to borrowing heavily against a depreciating asset and you're wondering whether it's a good idea to take on yet more exposure?

Hope you dont mine me amending your quote B&T to make it more direct.

Re-arrange the following words to make a well know sentence....

for - glutton - punishment

bingobangobongo

If we used the money to wipe out the negative equity, then we wouldn't have any money to move house.

If we buy a new house, we would be stuck with the current house which we would rent out and try and make overpayments to clear the debt - but lets face it, with £45k -ve equity it would be years before we could sell.

I was just looking to hear from anyone who had first-hand experiences of doing this. Regardless of the sense of it or lack thereof.

DTDfanBoy

A few years ago you probably could have managed it, but these days I doubt you'll be able to remortgage your current property with negative equity. The majority of decent lenders will be looking for no more than 85% LTV for a BTL mortgage.

pinkshoes

bingobangobongo wrote: »

I was wondering if anyone here had bought and moved into another house while in negative equity on their current house and rented it out (a so called 'reluctant landlord').

If so - how did you find it? Are you glad you did it or is the rented house a burden round your neck?

I realise everyone's view will be subjective but I am hoping for some first-hand experiences on this so I can weigh up whether this is an option i.e. renting out my property which is probably £45k -ve equity and buying a new, more permanent home...

It's an impossible scenario.

You would need 25% equity to get a Buy-to-let mortgage for starters.

You would be best off using the cash you've got to pay off the mortgage, save up some more money, THEN move.