Selling house in 2017. Keep current one?

firely2327

I became a first time home owner in March, having moved to Wales for a two year contract. Having rented for 12 or so years and on short term work contracts, I finally secured a permanent job and was in a position to purchase. It made financial sense for the two years, dead money renting and all that.


That's the easy part. I've taken leave from my permanent job (Manchester) and come to a job in Wales for two years, hence the house. I'll go back to Manchester or thereabouts in 2017 and will want to purchase a 'permanent' home there. So the question is this. Can or indeed should I keep my Wales home and let it, while also purchasing in Manchester? It's mortgaged, though the amount isn't huge and even if interest rates go up significantly I should be able to cover it with rental income alone. Financially of course it would be best to sell the Wales home, but I'm concerned that it may not shift as quickly as I want it and moving to rented accommodation in Manchester, even for a short period, is absolutely NOT something I will or even could do. Plus, coordinating two houses and jobs simultaneously (and solo!) both places is a huge task that I don't want to cram into one short space of time again. I can afford a deposit for Manchester thanks to a temporary change in finances, though I guess if interest rates rocket between now and then I'd have two high-interest mortgages around my neck. Where I live in Wales has a good rental market thankfully, but again another hassle of paying agents or private letting...


Any thoughts from fellow homeowners appreciated. Thanks/diolch.

marksoton

Well for a start the house in Wales would require the lender to allow you to let, and probably at a higher rate than you're paying now on a residential mortgage.

You say you can afford a deposit for Manchester but if funds are tight you might not meet affordability criteria for the new mortgage.

Probably worth a bit of number crunching and if plausible a decent broker. Especially considering your vague employment status.

firely2327

Thanks. Just to clarify, my employment status, while unusual, isn't vague. I've technically two jobs, the first (permanent one) being effectively on hold until I return to Manchester and of a lower income than the one I have in Wales, though still a respectable salary. In fact it was the Manchester job and salary that was used for my current Wales mortgage. I've thus a guaranteed (as much as any job can be) employment income for a mortgage term and beyond.


You're right though, can't tell what it will be like until closer the time re interest rates and the mortgage criteria may be difficult to meet.

Thrugelmir

firely2327 wrote: »

I've technically two jobs, the first (permanent one) being effectively on hold until I return to Manchester

What guarantees can you have that a permanent position will still be open to you in 2017?

firely2327

What guarantees can you have that a permanent position will still be open to you in 2017? A legally binding contract is what guarantees it. They cannot give me position to anyone else on a permanent basis.