Bit of background – I’m in the final stages of buying a house, contracts exchanged, deposit paid, and completion next week. The house I’m buying is a very ‘practical’ choice, partly determined by it being the best option available on the market at the time when I needed to buy somewhere as the house I am currently renting was put up for sale.

However, my friend has just told me of a house that meets exactly what I was wanting and has just come on the market. I’ve been to see it and it’s lovely, not just meeting my practical needs but is also a house which I would love to come home to and live in for a really long time.

Which leaves me with a massive dilemma. Pulling out of the current house purchase is not an option due to the significant financial losses. But I could consider:
a) putting the house back up for sale as soon as I’ve bought it, and hoping to sell it in order to buy the house I love (expensive re stamp duty / solicitors fees etc and a lot of hassle)
b) renting the house out – this would mean changing the mortgage to a buy to let one and releasing a substantial amount of the capital in order to have funds for a deposit on the house I would like to buy.

Anyone else been faced with a similar dilemma? Got any experience of doing either of the above two options? Especially the change from it being my home to a buy to let in order to release funds to buy an alternative house?

Just changed our mortgage to BTL and has gone up 50-60 per month (£450 starting) for the privilege, need a better loan to value for BTL also

First rule of house buying sue – soon as you sign the paper work – stop viewing houses !

Itll only end in tears

Least financial burden to pull out surely rather than be stuck with a house. I would not buy a house that had only been bought recently – certainly not without knoking them down alot

If you can make the numbers work, BTL is an attractive option.
Do the sums.

What trail rat said, speak to your agent to work out what you’d lose.

Not completing after exchange would mean you were in breach of contract, it’s not really an option imo.

I also think you may struggle to change to a buy to let mortgage immediately after purchase, is there any possibility to explore buy to let mortgage options before completion rather than going ahead with existing mortgage and trying to change it?

Not completing after exchange would mean you were in breach of contract, it’s not really an option imo.

That’s not necessarily as expensive an option as people think though. Its worth discussing with your solicitor, but you would be liable for their costs associated with your breach (if that also meant they screw up a whole chain then it can build up though), but it may not be that ridiculous compared to stamp duty and resale costs depending on the house, the local market and how quickly they can resell.

Not sure if this is what you want to hear, but you made a decision in haste and it was the best decision at the time, you needed a place to live. (Nothing is perfect btw)

Move into the house, live there for a good year, there are many many houses on the market all the time. Don’t repeat the mistake and make another decision in haste that could leave you very exposed financially, for the “perfect” house. Which probably isn’t.

And what Trail Rat said about looking at houses, you have made your decision now have a rest from stress for a while and be happy in the house you have !

That’s my advice !

With mtg rates still low consider B2L and see if you can get the other house that way .
Even if you let out house #1 for mtg interest, plus say £80 the numbers should work out .
Allow for EE survey , insurance , gas cert , Smoke alarms , CO alarm( optional peace of mind ) , rental valuation letter , PAT testing , management fees or ‘find me a tennant ‘ fees.
Or dont tell your mtg supplier and rent it out anyway , although for tax reasons you will be better of with interest only .
Plus you will need to find another few thousand to cover house#2 stamp duty , solicitors fees , deposit .
In the big scheme of things as long as you can cover the stamp duty and solicitor costs , plus a few months of interest on #1 then buying #2 should work out .