What to do???

Noi123

Hi all,

Need some aDvice please....

I have a house that's worth £425-£450000 our mortgage is £210000. We were thinking of selling the house in Surrey and moving to dorset, this would mean all our debts paid off and could buy a similar property for £250-£275000. The main reason for selling is that while we can afford the mortgage on the current property, our debts are making life hard at the moment. If we had a spare £50k lying about to pay all debts off we would be ok! Sonthisnis option 1.
Option 2 which I woul: prefer to do but my income is only 25/30k would be to put extra money on the mortgage to pay the debts off and rent our house out, we can get stupid money for renting where we are! I would want to still buy another property in dorset but would have no deposit. I am 55yrs old so I would only be able to get a mortgage until I'm 67 or until our government decides we should all work until 90! Just really after some advice please... Many thanks

grifferz

Is it an option to remortgage your house only for enough to clear your debts? You say you have ~£215k of equity and less than £50k of debt. £50k loan secured against your property with a term of 10-15 years?

I don't think you can hope to remortgage your home for enough to buy a whole new property in Dorset and then switch your home to a let. Don't forget that your lender will probably require you to switch to a BTL mortgage with a higher rate, then there will be landlord insurance too..

In either of your scenarios you are no longer living in your Surrey property so what is the issue with taking advantage of the much higher property prices in Surrey to take your first option, sell for a nice profit and clear your debts and live happily in Dorset? Is the BTL dream that essential for you?