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To Sell or Not To Sell
FoxtrotEchoGolf
Posts: 2 Newbie
Hi everyone, first time poster, long term lurker!
I would like to pick your brains on whether to sell my current property or not.
My current property was bought for £90k five years ago (right at the peak of house prices!) and is fully owned by myself. I reckon it would fetch around £80-85k if I were to sell it now, and that if I were to rent it out it would bring in around £400 PCM.
I would like to buy a new house for around the £180k mark and the question is, should I sell the current property to put down as a deposit and accept the loss of £5-10k or should I rent it out?
Do lenders accept rental income when applying for a mortgage as it is not guaranteed income and can my current house be used to secure the mortgage?
Other bits: My credit history is good (no CC debt/loans or missed payments), I could get a mortgage for around the £120k mark (from salary earnings) and I have savings of around £40k that could also be put towards a deposit.
I look forward to your wise words!
I would like to pick your brains on whether to sell my current property or not.
My current property was bought for £90k five years ago (right at the peak of house prices!) and is fully owned by myself. I reckon it would fetch around £80-85k if I were to sell it now, and that if I were to rent it out it would bring in around £400 PCM.
I would like to buy a new house for around the £180k mark and the question is, should I sell the current property to put down as a deposit and accept the loss of £5-10k or should I rent it out?
Do lenders accept rental income when applying for a mortgage as it is not guaranteed income and can my current house be used to secure the mortgage?
Other bits: My credit history is good (no CC debt/loans or missed payments), I could get a mortgage for around the £120k mark (from salary earnings) and I have savings of around £40k that could also be put towards a deposit.
I look forward to your wise words!
0
Comments
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I'd sell it. Being a landlord is hard work. Yes mortgage lenders do accept the profits from lettings.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
Unless you really want to be a Landlord, sell.
Keeping it on as a rental because you lost £5 or 10k smacks of playing on at the 1 arm bandits after you know you have spent more than you ought. To me it is just too much of a hassle to be a Landlord for however long it takes to make that money back. If you sell it and plough the lack of debt money into another property, you are selling and buying low.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
you will make more than your £5k loss on the bigger property.Sealed pot challange no: 3390
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DVardysShadow wrote: »Unless you really want to be a Landlord, sell.
Keeping it on as a rental because you lost £5 or 10k smacks of playing on at the 1 arm bandits after you know you have spent more than you ought. To me it is just too much of a hassle to be a Landlord for however long it takes to make that money back. If you sell it and plough the lack of debt money into another property, you are selling and buying low.
The reason that I'm considering keeping my current property is because it is my first house, in my home town rather than any depreciation of the property, and that selling it means a break of ties to the area as I'm looking to move 400+ miles away due to work.0 -
sell it if your moving that far away - not worth the hassle0
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