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Should we keep or sell?
taxl0ss
Posts: 4 Newbie
My wife bought a flat in 2006 (before we met) on a 30 year mortgage with Halifax. We bought our house together in 2008, got permission from Halifax to let the flat and have rented it out since then making no profit but covering the repayment mortgage with maybe a small loss.
We have recently come to the end of the agreement period and Halifax have offered us a 30 year repayment mortgage with permission to let fixed for 3 yrs at 5.59% :eek:. Because the price has fallen some £16k since the flat was bought, the mortgage is 95% LTV restricting our choice of lender to basically Halifax!.
This new mortgage means we'd be losing £70 per month after collecting rent from our tenant but still slowly repaying the capital over the years.
I don't have a massive problem covering this loss of money but in the back of my head I'm thinking this isn't a viable investment long term, no matter how much we try to make it work. My current thinking is to try and repay a lump of the capital after 3 years and get a BTL mortgage.
What's everyone's opinion on our situation? I'd be grateful for any advice.
We have recently come to the end of the agreement period and Halifax have offered us a 30 year repayment mortgage with permission to let fixed for 3 yrs at 5.59% :eek:. Because the price has fallen some £16k since the flat was bought, the mortgage is 95% LTV restricting our choice of lender to basically Halifax!.
This new mortgage means we'd be losing £70 per month after collecting rent from our tenant but still slowly repaying the capital over the years.
I don't have a massive problem covering this loss of money but in the back of my head I'm thinking this isn't a viable investment long term, no matter how much we try to make it work. My current thinking is to try and repay a lump of the capital after 3 years and get a BTL mortgage.
What's everyone's opinion on our situation? I'd be grateful for any advice.
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