Selling & Renting vs Staying & Risking

DaiJoA

Hi everyone

I posted on here the other day about us being refused porting for our mortgage with Northern Rock - it is still going through the IFA at the estate agents but not looking very likely, and we've decided that even in the unlikely event of us being granted porting only (and not extra borrowing), we'd be fools to move and put the moving fees onto credit cards as we already have £4k credit card debts. Obviously the ideal is we get portability and £5k extra, but that looks about as likely as winning the lottery.

Anyway, this now opens up a new can of worms - do we keep ours on the market and sell, pocketing around £9k after ERC and agent commissions, rent in our desired area for around £670-700 and save hard to get back on the ladder....OR stay here until three years time when our 5yr tie-in with NR ends, leaving us with a £127k mortgage and the risk that no-one will re-mortgage us, meaning we'd be stuck with NR and their horrendous high monthly payments?? who knows what the climate will be like then?? Do we take the risk of drowning in three years or get out now?

Obviously no-one has a crystal ball but I'd really appreciate some advice on this!

also...anyone know if the miracle did happen and we got portability, we'd have to pay an ERC to NR in any event?

beecher

From what you posted on the original thread, I would sell and rent in your desired area. You sounded as if you couldn't possibly stay where you are for 3 years because you hated the area. I think you'd feel better making that positive move now, rather than wondering what was going to happen for the next 3 years.

DaiJoA

The area is still a concern but as my mum lives there we can get our son into the school from her address, so that doesnt really come into it other than the logistics of getting him there from here if we're still living here, my main worry is if we do stay here will we be forced into carrying on with a ridiculously high mortgage with NR?

also it is a lot easier to buy a house if you are in rented, and we'd have nine grand as a base to save on.

I'm leaning more towards selling and renting - what do you think the chances of getting NR to waive their ERC would be, considering they are relieving themselves of a £132k 'asset'. I know we signed up for 5 years etc and the ERC is there for a reason, but it doesn't seem really very fair that they've got what they wanted, freed from us, AND £4k of our equity!!!

I guess we've just got to accept that having our own house isn't everything.

beecher

DaiJoA wrote: »

I'm leaning more towards selling and renting - what do you think the chances of getting NR to waive their ERC would be, considering they are relieving themselves of a £132k 'asset'. I know we signed up for 5 years etc and the ERC is there for a reason, but it doesn't seem really very fair that they've got what they wanted, freed from us, AND £4k of our equity!!!

I wouldn't think you'd get the ERC waived, but if someone has heard of anyone getting it waived, I'm sure they will post here.

Owning your own house definitely isn't everything, and you're probably better judging what you can afford by what banks are willing to lend now, rather than what NR were willing to lend then.

Good luck in deciding what to do - only you can know whether you want to wait it out for the next 3 years, or rent. I'd imagine there would be a lot less stress involved in renting though.

silvercar

The area is still a concern but as my mum lives there we can get our son into the school from her address,

:rotfl: :rotfl: :rotfl:

Unless you get caught out before the first day of school and the LEA withdraw the place!

DaiJoA

My IFA is off sick today so I decided to ring NR myself, unsurprisingly they're sticking like concrete to thier wonderful terms and conditions, so it looks like if we do decide to leave here and rent, we'd walk away with about £9k after all the fees, which I suppose is a pretty good base to build a deposit for another mortgage in a years time on. I really feel like telling NR where to stick it, but we've still got to decide firmly on if we are going to rent - my husband doesn't want to, but he doesn't want to stay here particularly either especially with the risk that in three years time we'd be forced to stay with NR for our mortgage at about £1100 a month! and because of our son starting school in 3yrs that's all really bad timing to try again to move - really don't want to have to move in with my mum again just to get him in!

So I think in the end we're going to leave this on the market and see what happens.

I'd certianly NEVER recommend NR in the future!!