cant sell my house but want to move, whats options?

hartlepool_jono

Ok guys bit about me, i (me, wife 3 kids) have been living in current house since approx 2007, is now worth maybe 20k less than i payed for it, however i have been making overpayments when i can, and now have maybe 50k in equity. i also have a buy to let which i bought in december last year, put down 25%, this is rented out.
we have seen a house which we want, and have ours on the market, but with no luck selling, dont really want to reduce house further if i dont have to, my question is whats my options, apart from the obvious dont move, if i got consent to let on my current house, where would this leave me getting a new mortgage and what type would be open to me and how much deposit would i need? i could probably rent current house out and cover the repayment mortgage on it (based on 10 months rental) i know really need to speak to mortgage advisor, just wondering if anyone has any views on this. i could have maybe 10% deposit without taking equity from either my btl, or current house. any thoughts welcome?

amcluesent

As you're already in the BTL business, letting your current property must be an option as you know the score.

hartlepool_jono

yeh i think i would prefer to go down that road, its just i dont know what kind of mortgage i would be able to get on new purchase, would this be residential, also wondering if i could switch my current mortgage to btl when it is time to remortgage, as i would have enought equity in house to do that

brit1234

hartlepool_jono wrote: »

we have seen a house which we want, and have ours on the market, but with no luck selling, dont really want to reduce house further if i dont have to,

You will have to drop the price if you want to sell it, its probably overpriced.

A 10% deposit could become very costly with mortgage rates set to rise this year with the euro crisis

Loopgames

LO? You what?!

Loopgames

hartlepool_jono wrote: »

Ok guys bit about me, i (me, wife 3 kids) have been living in current house since approx 2007, is now worth maybe 20k less than i payed for it, however i have been making overpayments when i can, and now have maybe 50k in equity. i also have a buy to let which i bought in december last year, put down 25%, this is rented out.
we have seen a house which we want, and have ours on the market, but with no luck selling, dont really want to reduce house further if i dont have to, my question is whats my options, apart from the obvious dont move, if i got consent to let on my current house, where would this leave me getting a new mortgage and what type would be open to me and how much deposit would i need? i could probably rent current house out and cover the repayment mortgage on it (based on 10 months rental) i know really need to speak to mortgage advisor, just wondering if anyone has any views on this. i could have maybe 10% deposit without taking equity from either my btl, or current house. any thoughts welcome?

Surely it depends on salary and value of place you want to buy.

Also maybe it is worth keeping your current mortgage and moving it with you to your new home whilst getting a btl one for your current home. Speak to your lender.

Lovelyjoolz

Loopgames wrote: »

Also maybe it is worth keeping your current mortgage and moving it with you to your new home whilst getting a btl one for your current home. Speak to your lender.

What Loop says. If you have the equity to do it, take out BTL mortgage on current home and move your current mortgage to a new property. You need to speak to your lender to
a) make sure that the equity is sufficient to do that;
b) ascertain how much you will be able to increase your current mortgage to

Do you have other cash as a deposit on the new property?
If not, can you sell your BTL property to release cash?

Also, you need to find out how much you could potentially rent out your current home for. The lender will want to know this before agreeing to the BTL.

hartlepool_jono

firstly thanks for replys,
however not sure what a L.O is?
as for being overpriced, it is cheaper than a lot of similar propertys in estate, it was valued at 239k and 244k (by 2 agents) in august last year which i thought was high but went with the lower, i have since reduced it by 30k. so i do feel it is priced correct. one of things that could be against it is we consented to next door building an extension which is full width, and half of which is 2 storey, we didnt realise how huge this would look, and really dominates our back garden. dont want to sell or take equity from my btl, as i have bought this as long term investment, and would probably like to get another by early next yr. my current morgage is bit under 150k and redemption period is up early next yr. if i could swap my mortgage to a btl on current property when it is up for renewal that would be great, and i would prob prefer to do this rather than sell anyway, so if we say value is 210 or 220k for btl purposes, my 140k mortgage (by renewal time) should be ok for a btl mortgage, just need to get deposit for new house, in heindsite i decided to upgrade our car in november and spent 35k on new x5, didnt get finance or anything though so tht was a plus, the car we had was perfectly ok aswell (and more economical!)

hartlepool_jono

rental should be 800-1000 per calendar month for my current property and am confident it would rent out straight away. so on a I.O mortgage repayments should be circa £500 at mo, leaving me with excess to bank, with my current btl i top up payments received so i have 1k going into seperate account which i dont intend to touch, will either use this to make further btl purchase or after 6 yrs clear btl mortgage for that property, though for tax reasons dont think thats most beneficial.

hartlepool_jono

also should be able to have circa 30k in savings by time renewal comes so would go towards deposit. hopefully will be in same job so getting mortgage wont be issue, as i am usually limitedd company, but currently working in norway and effectively paye, which will make lending easier.