Sell or rent?

claireybee

Hi,

I apologise if the details I give are a bit vague, it's all hypothetical speculation at the moment! My partner has a flat that he has owned for five years, he bought it for 80k. His ltv was 90% so took out a 72k mortgage. It is very likely that the flat is now in negative equity, although not dramatically so.

My question is this. We would like to buy a house together as the flat is too small for us and our fifteen month old son. We have 15k saved for a deposit and are on a combined income of £48500 before tax. Should we aim to get consent to let from the current mortgage provider and keep the flat, renting it out to my brother who would cover the cost of the mortgage and council tax/bills and try to buy a house in addition to this. Or should we aim to improve the cosmetic features of the flat and sell it for the best price we can get before looking for our next house? Would a mortgage company even consider giving us a mortgage on a house whilst he currently still has a mortgage on the flat?

Thanks in advance.
Claire.