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BTL, 2 yr mortgage deal ending, trying to sell house - options, help!

snickpan
Posts: 168 Forumite

Hi all, I've tried for a year to sell my HMO to fellow landlords with no luck (other than stupid low offers), so now going to sell to 'real' people, should open up to a potentially bigger group of buyers - so I've turned the 2 downstairs bedrooms back into a lounge and a dining room, make it look like a house, not a hostel. So I've lost £1300 or rental income from those two rooms, and my 2yr BTL deal is about to end, meaning the payments will shoot up. Before I approach The Mortgage Works, what options might I have, if I start to run short on money?
Thoughts so far: skip a couple of payments and take the 'late' fines on the chin when I sell and pay off the mortgage. Ask for some leniency, ie warn them I may not be able to make every payment, see if they offer a couple of months payment holiday with interest added to the loan (or something). I don't think I can sign up for another 2 yr deal as it would lead to early repayment fines once the house is (hopefully) sold. Maybe just get a bank loan to tide me over, and swallow any repayment fees
I might survive, but I'm planning ahead. I have some savings, but I also have to tackle the kitchen and garden!
Thoughts so far: skip a couple of payments and take the 'late' fines on the chin when I sell and pay off the mortgage. Ask for some leniency, ie warn them I may not be able to make every payment, see if they offer a couple of months payment holiday with interest added to the loan (or something). I don't think I can sign up for another 2 yr deal as it would lead to early repayment fines once the house is (hopefully) sold. Maybe just get a bank loan to tide me over, and swallow any repayment fees
I might survive, but I'm planning ahead. I have some savings, but I also have to tackle the kitchen and garden!
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Comments
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If you're planning to miss some payments then the general advice is to speak to your lender first before you stop paying. They will be more accommodating to your situation if they know about it in advance. Like I say this is the general advice, since I haven't been in this situation before I don't know whether it's true that they'll be nicer to you if you're upfront.
I agree that you shouldn't' sign up to another 2 year deal. Your current lender should be able to offer you a lifetime tracker or similar that allows unlimited overpayments. Will be cheaper than going on the Standard Variable Rate at least.1 -
Excluding the hassle factor, which must have some value, what would the loss be between the “stupidly low offer” and all your costs in preparing for a sale on the open market that didn’t happen for another few months?I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.1
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Do you have tenants in the other rooms? It could be off putting to view a property with those tenants in situ. Buyers who want to move quickly are going to wonder how long it will take to get rid of the tenants. Tenants also understandably don’t have any interest in making the property look good for viewers.I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.1
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silvercar said:Excluding the hassle factor, which must have some value, what would the loss be between the “stupidly low offer” and all your costs in preparing for a sale on the open market that didn’t happen for another few months?0
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silvercar said:Do you have tenants in the other rooms? It could be off putting to view a property with those tenants in situ. Buyers who want to move quickly are going to wonder how long it will take to get rid of the tenants. Tenants also understandably don’t have any interest in making the property look good for viewers.0
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El_Torro said:If you're planning to miss some payments then the general advice is to speak to your lender first before you stop paying. They will be more accommodating to your situation if they know about it in advance. Like I say this is the general advice, since I haven't been in this situation before I don't know whether it's true that they'll be nicer to you if you're upfront.
I agree that you shouldn't' sign up to another 2 year deal. Your current lender should be able to offer you a lifetime tracker or similar that allows unlimited overpayments. Will be cheaper than going on the Standard Variable Rate at least.0 -
Your HMO/former HMO and affordability situation sounds like a house that should be sold at auction.0
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snickpan said:silvercar said:Excluding the hassle factor, which must have some value, what would the loss be between the “stupidly low offer” and all your costs in preparing for a sale on the open market that didn’t happen for another few months?I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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HobgoblinBT said:Your HMO/former HMO and affordability situation sounds like a house that should be sold at auction.0
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snickpan said:HobgoblinBT said:Your HMO/former HMO and affordability situation sounds like a house that should be sold at auction.
Sounds like it's not actually worth £650k thenpoppy101
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