Rent a house to buy a house?

mercman1969

Wondering if this is possible to do
We currently live in a property that has a mortgage on it
We would like to move to another area but the properties are a tad more expensive in the new area

Is it possible to rent our property out and then to rent a new property in the new area?

I realise that it is still going to cost us more money possibly - but we got a very good 10yr fixed with nationwide 2 years ago and do not want to surrender nor add to our current mortgage as now got a 2 year old to consider

Regards

spinks

You would have to get permission from your current lender to let the property but would have thought it unlikely they would allow it on that mortgage.

dolce_vita

mercman1969 wrote: »

Is it possible to rent our property out and then to rent a new property in the new area?

In a word, yes.

PasturesNew

mercman1969 wrote: »

Wondering if this is possible to do
We currently live in a property that has a mortgage on it
We would like to move to another area but the properties are a tad more expensive in the new area

Is it possible to rent our property out and then to rent a new property in the new area?

I realise that it is still going to cost us more money possibly - but we got a very good 10yr fixed with nationwide 2 years ago and do not want to surrender nor add to our current mortgage as now got a 2 year old to consider

Regards

The whole point of fixed mortgages were to help people to budget. And so by taking out a 10 year fixed term mortgage you were saying that you were going to be there long-term. So what changed?

10 year fixed deals are taken out by people who don't believe their circumstances will change for at least the next 10 years.

Personally I think you'd be storing up all manner of trouble for yourself - and should your current mortgaged house be empty (happens between tenants and before you find the first one) you'd be paying for TWO houses.

Why not either take the hit of paying the redemption charge, or see if you can transfer the mortgage to the new area and buy a smaller house?

fc123

mercman1969 wrote: »

Wondering if this is possible to do
We currently live in a property that has a mortgage on it
We would like to move to another area but the properties are a tad more expensive in the new area

Is it possible to rent our property out and then to rent a new property in the new area?

I realise that it is still going to cost us more money possibly - but we got a very good 10yr fixed with nationwide 2 years ago and do not want to surrender nor add to our current mortgage as now got a 2 year old to consider

Regards

We have done this (though it was to relocate for work)
Get permission to let from mortgage company, appoint an agent who will charge around 10 - 15% of rent in fees + VAT.
Also detach yourself emotionally from your current home.

PS; I hate renting but I love where we live...the bit I hate are the 3 monthly inspections when I have to hide the illegal cat.

It makes life more complicated but it is pretty straightforward....post agAin if you want any more info

spinks

fc123 wrote: »

PS; I hate renting but I love where we live...the bit I hate are the 3 monthly inspections when I have to hide the illegal cat.

Do you allow the tenants in your house to bend the rules to suit themselves. If it has been stipulated that no pets allowed then it is rather unfair on the landlord that you should have a cat. I thought you would see the logic in that being a landlord yourself.

speedtwin

Get rental valulation done on your property by 2-3 agents (get their rates at the same time)

If you find a place to rent try to haggle the price down a bit

pickles_pink

Why don't you port you 10 yr fix to the new property?

You say that you do not want to add to this mortgage but surely it would be better to get a "top up" rather than be liable for rent (+the associated fees), landlord costs and a mortgage.

In addition "Top Up" products are usually free of "arrangement/booking fees and you may even find one with a free valuation.

obviously if the move is temporary and you hope to return the matter may be different.

Good luck with what you decide.
x

mercman1969

Thanks for all the advise. We would love to top up but in last 4 years have,

Started a business
had a child - now 28 mths
Wife had to give up her career and good salary to work in the business - that in itself would not be a problem, however daughter has been really poorly and hence wife hardly in the business so no salary - hence why we do not want to top up the mortgage

Would love more info fc123 - we wish to move as we need to be in an area to allow daughter to go to the school we want her in - so more or less a relocation

Regards

fc123

spinks wrote: »

Do you allow the tenants in your house to bend the rules to suit themselves. If it has been stipulated that no pets allowed then it is rather unfair on the landlord that you should have a cat. I thought you would see the logic in that being a landlord yourself.

Just found out out my tenants have illegal DOG!!! And it's probably scratching up my maple floors!! But they pay rent on time, keep place in good order...no I am not happy but am stuck between rock and hard place at the moment....
PS my cat is absolutely beautiful, clean gorgeous looking ginger...almost like an accessory off a house !!!!!! type prog....so don't start picking on me perleeeze.

But as hubby is a carpenter we have done a dodgy thing re cat flap...but I'm not telling...this part of the site is SOOOO judgemental!!:D

fc123

spinks wrote: »

Do you allow the tenants in your house to bend the rules to suit themselves. If it has been stipulated that no pets allowed then it is rather unfair on the landlord that you should have a cat. I thought you would see the logic in that being a landlord yourself.

Just found out out my tenants have illegal DOG!!! And it's probably scratching up my maple floors!! But they pay rent on time, keep place in good order...no I am not happy but am stuck between rock and hard place at the moment....
PS my cat is absolutely beautiful, clean gorgeous looking ginger...almost like an accessory off a house !!!!!! type prog....so don't start picking on me perleeeze.

But as hubby is a carpenter we have done a dodgy thing re cat flap...but I'm not telling...this part of the site is SOOOO judgemental!!:D