Stepping off the ladder. And getting back on

Beta_Block_Party

Any general advice/opinion appreciated...

I have a mortgage which is about half the value of my house.

I am considering selling my house, banking the equity and renting for a while.

I then intend to buy again when ready, perhaps in 6-12 months time.

The house I would buy would require a bigger mortage than I currently have. My deposit (the equity) would cover around 30-40% of the house price.

I'm employed and my circumstances are unlikely to change.

Is coming "off the ladder" a risky move? Is there a possibility I would not be able to get a mortgage again?

EmmG_2

What is your rationale? Do you hope to achieve a much more affordable mortgage than you currently have with the low LTV %? If so, what is the justification for hopping off the ladder for 6-12 months? Do you think your equity is likely to do better in savings account than in 'bricks and mortar'?

Oh dear, I'm terribly sorry - in proving that questions are much like amoebas, I answered your two questions with four questions.

To give more declarative responses:

Is coming "off the ladder" a risky move?

Of course!

Is there a possibility I would not be able to get a mortgage again?

With an income and a deposit, you should be able to.

However, I remain curious on my original points.

Goldiegirl

It's a risk, because no one can tell what house prices will do.

If they suddenly go up sharply, you might get back on the ladder at a lower point than when you got off.

Renting shouldn't have an adverse affect on your ability to get a mortgage, as long as you make sure you are on the voters roll, keep up to date with all your payments and make sure you have proof of your address etc.

Thrugelmir

Why pay rent? Why not continue to pay down the mortgage.

dimbo61

Selling and then renting and then buying all cost money!
But having a large deposit, cash buyer with Mortgage approved by your lender can put you in a strong position when you do go house hunting!
Unless you are living in London where prices continue to rise I do not think house prices are going anywhere.
It can be very stressful selling and buying at the same time with the chance your buyer might pull out at the last minute.
However renting can have problems as well.