OK so we want to move. Terrible time to sell, great time to buy. We’ve been looking at some lovely houses in nice places, very cheap, mortgage would be almost invisible. Problem is, we have to sell our house and they’re just not selling. There are houses on our estate that have been up for sale for years, they’ve dropped prices, but they’re just not moving.

So I thought about renting our house out. Houses on our estate are being rented out quite regularly. Now the good thing is we own our house outright although it’s not worth very much, about £110k at current prices I reckon (valuer coming round today)

So i figure if we want to move quickly (and I do because I hate it), we could re-mortgage, interest only repayment, and rent it out. So say £70k or something. No idea what would happen with the rent but lets say the rent pays for that mortgage and breaks even.

Then we get a mortgage on a new house, say another £110-120k, try for a repayment mortgage but interest only could work too. We move quickly and get a nice house we like and continue for a few years until the property market picks up again and we can sell the original house. Pay of that mortgage and potentially drop our new mortgage some funds.

Does this sound realistic? I’m assuming some people here have done this. Tips, advice?

Obviously there’s the further option that the rental property turns out to be quite profitable and we end up leaving it rented for a considerable period. That sounds a bit too hopeful though.

Would your bank “mortgage you” for £190k? (120+70).
They will most likely take your ‘rental mortgage’ into account, and deduct that value from your overall lend value.

We rent out ‘our house’, and live in a rented place ourselves.

I did want to keep ‘our house’ that’s rented, and save up for another one to live in. However, our FA explained that the mortgage already on the ‘rental house’ would lower the ‘new’ mortgage we could get.

I’m probably going to sell up at a convenient time, and just have the one house TBH!

DrP

I think you need to speak to the bank.

My wife and I both own flats but we’re looking at buying a house. When she spoke to her bank about it, they seemed fine with the idea of selling one flat, renting out the other and providing us with a mortgage for a house.

We don’t even own either of them out right, so I’m sure you’d be in a better position than us.