Stuck - Need some advice

krs77

Hi All


We currently let out our house in Liverpool due to re-locating, we would really like to sell but with an outstanding mortgage of £67k and a current value of approx. £70k it doesn't seem worth it.


Basically we are stuck on a SVR with Santander of 4.74% and they won't offer us a new deal as we are letting the house out, we cannot afford not to have a tenant in there as we can't cover the mortgage ourselves but we really want to sell.


With regards to getting another mortgage after selling I'm not sure what advice you could give also as we don't have a particularly good credit record and wouldn't have a deposit and no way of saving as we are currently paying to rent the house we are in!


I think I know what the answers will be but would appreciate anyones expertise on this.


Thanks in advance.

Pixie5740

I'm assuming that you have consent to let from Santander. I doubt you'll get a BTL mortgage as you don't have enough equity in the property. Are you making any profit letting the property out? Do you have any money set aside for void periods or repairs or gas safety certificates (if applicable)?

I imagine having no deposit would be a bigger stumbling block to getting another mortgage than your poor credit history. If you go over to the Debt Free Wannabe board and post a staring of affairs then you'll get suggestions on how to make your budget go further so you can start saving.

theartfullodger

krs77 wrote: »

.................. we cannot afford not to have a tenant in there as we can't cover the mortgage ourselves .....

In that case you shouldn't be landlords. Tenants do not always pay rent (nor do agents): Large repair bills happen.

Gas safety cert? Permission to let?? Landlord insurance?? ALL rent declared to HMRC & any relevant benefit agencies??

Suggest you sell up& move on.

Chanes

Personally, I'd take a hit on the property and be done with it.

A clean slate will let you focus on going forward instead of this looking over your shoulder at what you left behind.

Life is too short.

AdrianC

You've got next-to-no equity in the property.
You're barely covering the mortgage with the rent.
You've got no spare cash.

Can I ask a daft question here?
What happens if/when you get a void, or a bill for maintenance, or the tenant owes rent, or the tenant does a runner leaving you with a trashed mess?

SELL! Now, while you can at least cover the sale fees...

Joskat

Take the hit - sell. Start afresh with a clean slate and clear mind.

Mossfarr

Have you asked your mortgage provider if you can switch to an interest only buy to let mortgage? If not then perhaps this is something you should consider. It would certainly ease your financial situation until you are in a better position to sell.
You should make an appointment with the financial advisor at your bank to discuss your options. This is usually a free service, I have found their help invaluable.
good luck
mossfarr

krs77

thanks to all, I knew what the answer would be but just wanted confirmation really!


As to the post from the unhelpful person, no, we shouldn't be landlords and neither do we want to be, I think we are classed as an accidental landlord, and yes, for your information we do have landlord insurance, permission to let, and have an insurance which covers any boiler repairs and gas safe certificates, so think maybe you should think and ask these questions before you answer with patronising answers.


I thought this forum was for help not to be shot down everytime I post something, people are so quick to assume without finding out the facts firstly!

alexcazacu01

Hello,

I already switch my account to halifax last year, they pay me the £100.
Can I switch to another bank after one year with halifax or I will need to pay back the £100?

Thanks!