To Sell or Not to Sell?

Posted on 12 March 2011 by Susan Sanders


My husband is 50, self employed, I am a painter so do not have a fixed income. We currently have 3 properties more by accident than design.

House 1: £305k Interest only, value £345k (bought for £355k 2008). About to become vacant after being rented for a year.

Originally our main residence.

House 2: £115k IO mortgage, £190k value, bought 5 years ago. We'd rather not sell, it'll rent easily & is likely to go up in next couple of years with local changes.

House 3: £80k IO mortgage, £100k value, bought many years ago, equity used to put down deposit on House 1. (oh dear).

No repayment vehicles in place as we hoped to switch to repayment as income increased once I return to work full time. We now need to move to same size property as house 2, but in a more expensive area.

We are worried about cost of mortgages without a repayment vehicle in place and not sure if we'd be better just to sell House 1 and clear that debt although unlikely we'd ever get deal again (given husband's age, employment, deal 0.5% above BoE base rate and totally flexible.)?

Susan,

I agree that it will be difficult to replace the mortgage that you have on House 1 and whilst your Lender is happy for the property to be let I would try and leave it alone. Whilst it would be nice to keep houses 2 & 3, you may find it makes more sense to sell these and use the equity towards the deposit and costs.

I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 and tell the consultant the date and title of your question. They will be able to look at your situation and advise you accordingly.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

You are currently offline. Some pages or content may fail to load.