Relocation and Mortgage help?

clairembs

Hi - I wondered if anyone can assist me with our current dilema. My husband has started a new job that is 100 miles from our current home and has been trying to commute but it has become apparent that we need to look ot move to keep us all sane.

We have found an area that we would like to live but due to timeframes (School, work) the time it would take us to buy and sell is not workable. We therefore have considered renting in the new location and renting out our place. The only problem we have is that we currently have a mortgage with Clydesdale at a very competitve tracker rate, which we do not want to loose.

Can anyone give me some guidance on options that we have that we have not considered. I had thought about buying in new location and putting our current home on a buy to let but the figures do not work.

Salary - £65,000 and £35,000
Savings £40,000
Current mortgage - £260,000
Current value of home - £350,000

Thank you for your help.

kingstreet

Ask Clydesdale if they would consider giving you consent to let?

If they will, you can plan a little more confidently.

clairembs

Thank you kingstreet - Unfortunatley, will not give us this option. This may be due the fact that a few years ago they had to pay off the shortfall that had built up when they calculated our monthly repayments incorrectly.

kingstreet

You'd lose the Clydesdale rate, but you could remortgage the current property onto a BTL product. You are just within the 75% loan to value limit (£262,500 on £350,000) set by most lenders.

You'd need the rental income to exceed the monthly mortgage interest payment by 25%, assuming a rate of perhaps 6%. To justify a £260k mortgage, that means you'd need to generate a rental income of £1,625 each month. Feasible?