My mortgage options only owned for 1 year

Atechnician

Hi I'm looking for advice on what my options are. I'm 24 and decided 2 years ago to buy my own place so I saved up for 1 year and bought a 3 bedroom house for 160k with a 5% deposit even though I was single and live alone. My reason was I would most likely need one in the future and thought why not get one initially to save moving later in life.

I could and can afford it but it is costing me a fortune which isn't really nescisary at this moment in time I have decided, also I'm hardly in the house (work) maybe been in it a total of 2-3 months in the past year which is mostly odd weekend or week at a time.

I still owe over 90% so I can't rent it out my mortgage company won't let me but it's killing me paying all this money for somewhere I hardly stay.

So how does selling your home to buy another work? I'm thinking of maybe selling my place and buying somewhere cheaper is this possible without losing out?

-bought house 160k
-5% deposit
-cost approx 10k in total for fees and deposit
-settlement figure £154,707.48
-30 year mortgage

I have a small street and 2 houses both 3 bedroom terraced with exactly same layout inside sold for 165k recently but my house is also 3 bedrooms but is end of terraced so only has a house on one side, has conservatory and detached garage whereas the other two don't am I right in assuming my house is worth at least 165k?

What's my options is it possible to downsize without losing out or suck it up for bit longer and rent it out then get somewhere else?

Atechnician

I also have a excellent 999 credit score of that helps

AnotherJoe

What about getting lodgers in ?

Atechnician

I did think about lodgers but I'm away a lot and means leaving house unattended with strangers I don't think I'm comfortable with that

getmore4less

^^^^^^^^

if you are never there lodger(s) are ideal.


rent a room limit £7500. £625pm tax free will cover the interest and share of the bills

if you have 2 lodgers then there are more complications regards PRR/CGT but they may not be a real issue if you keep the place longer term.


.......................
changing houses is expensive(don't include deposit) to get back to where you are you do it twice.

best only to do it if you have other reasons like the wrong location.

getmore4less

Atechnician wrote: »

I did think about lodgers but I'm away a lot and means leaving house unattended with strangers I don't think I'm comfortable with that

but you are still considering renting the place out, they will still be strangers and can trash the place and not pay rent and be difficult to remove.

lodgers excluded occupiers easy to remove.

A Mon-Fri lodger could work as they tend to have real homes to go back to .

Atechnician

I was thinking of renting out unfurnished and direct my mail somewhere else what's the stop lodger going through my stuff when I'm away?

What do people do for security of having a lodger in?

What rights do they have do I need a contract with them?

getmore4less

Even if you are there all the time unless you work from home and never go out someone can go through your stuff.

ever have anyone round for "special time" they could go through your stuff.

Most people just lock their !!!!!! collection away and get on with their lives when they have lodgers.

I guess you went from home to house and never did the renting/house sharing stage that most people do.

When you are away a lot where are you staying?

Atechnician

Newcastle but work offshore and in Aberdeen a lot. I have rented a room in the past but the owner never left the place, Then I rented a flat for a year then a house then bought a house.

I like th sound of mon-fri lodgers are they common?

AnotherJoe

I understand your concerns. If you have anything especially valuable or personal, store it in your bedroom or spare room and put a lock on that room. Your bedroom would be the obvious, with all your clothes in it anyway. I've rented holiday lets where there is one room that's locked presumably full of the owners personal stuff.

I don't know how common mon-fri lodgers are but they are certainly out there. Maybe if you tried that for a while it might also give you confidence for a whole week lodger, but as said, mon-fri also will most likely be home owners anyway and be less disruptive they wont have as much stuff, it's an alternative to a soulless hotel room.

A friend of mind did it for three or so years after he got fed up with Premier Inns (nothing wrong with those) but he just wanted the ability to use a cooker, sit in the lounge and watch tv rather than be confined to one room. He did it because his commute was just too tough to do every day.

getmore4less

OK offshore.

Anyone in the industry that needs somewhere to live/store stuff, you could offer better rates if they are there part time like yourself.

As Joe says Mon-Fri are often people with lives elsewhere live out of a suitcase and go home most weekends.

An offer to use the place at weekends with partner/family might be attractive to a relocator for house hunting.

Not sure about Newcastle but when I was looking in a student city for short term(3month) lodgings/house share there was very little they all wanted students/long term in the end I used AirBnB to find somewhere.