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Renting questions
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phil999_2
Posts: 228 Forumite
Hi
I am shortly to migrate to the US with work and plan to rent my 2 bed house. Currently I have a repayment mortgage with abbey on 5 year fixed till 2013 and they will allow me to rent.
With paying a letting company and the rent it would be very close to the coat of my mortgage (80k) the house value is around 160k.
Would I be better off changing to an interest only mortgage would this be an option for me? Would it be cheaper?
In the US I should have more disposable income so I am not concerned about paying off the mortgage in the end just making sure it doesn't cost me monthly in the short term.
Any thoughts on what options I have would be great fully appreciated. My mortgage payments at the are £600 the rent would be between £700-£775
If this is in the wrong feel free to move
Thanks
Phil
I am shortly to migrate to the US with work and plan to rent my 2 bed house. Currently I have a repayment mortgage with abbey on 5 year fixed till 2013 and they will allow me to rent.
With paying a letting company and the rent it would be very close to the coat of my mortgage (80k) the house value is around 160k.
Would I be better off changing to an interest only mortgage would this be an option for me? Would it be cheaper?
In the US I should have more disposable income so I am not concerned about paying off the mortgage in the end just making sure it doesn't cost me monthly in the short term.
Any thoughts on what options I have would be great fully appreciated. My mortgage payments at the are £600 the rent would be between £700-£775
If this is in the wrong feel free to move
Thanks
Phil
I have finally acknowledged my debt.....
0
Comments
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An interest only mortgage will obviously be cheaper, and give you some 'cash in hand' from the rent. Remember, you cannot calculate your budget based on 12 month rental income - 10 is sensible to allow for gaps between tenants, tenants who default etc. There's tax too. And there's always unexpected expenses, so some extra cash held in reserve and alloacted to the property is wise.
Speak to the lender about the interest only option.
More advice here.0
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