Hi Everyone,
I'm trying to see if anyone else can maybe give me some fresh ideas with my problem! Everything I try to do seems to just present a new problem!
Ok so here is the background. I own a 2 Bed ground floor flat. Bought for £140,000 in 2006 it's now worth £120,000 if I'm lucky. Now we are looking to buy a house, I have saved up quite a bit of money for a deposit on the next place which is fine but it's what to do with the flat!
I could sell it but like most people I don't really want to put my hand in my pocket and pay £20,000 to get rid of something! I'm thinking of renting it out as it would quickly be rented but here is the next problem.
The mortgage company have stipulated on the application paperwork that you need to have a rental income of 120% of the interest part of the mortgage which is fine but they also require you to have a LTV of 60% which as you can see above is not going to happen. The mortgage is with NRAM. Does anyone have any experience with them in the rental applications and how likely they are to accept it?
You have to bear in mind when I start this next sentence that I hate this place!! More than you can ever imagine. Just because I can't get out of it.
I have considered just stop paying the mortgage and let them repossess the flat but then figured that would hurt my credit rating as I would default etc and they will still chase me for the excess money as well. It does say that if I rent out without their permission they will seek to repossess the place as well if they find out.
I assume this would mean you would be in breach of your mortgage agreement etc, but could they actually report anything on your credit report because you would still be keeping up with the repayments?!
Any thoughts on wha people would do would be great. And sitting and riding it out is not an option anymore! lol.
I'm trying to see if anyone else can maybe give me some fresh ideas with my problem! Everything I try to do seems to just present a new problem!
Ok so here is the background. I own a 2 Bed ground floor flat. Bought for £140,000 in 2006 it's now worth £120,000 if I'm lucky. Now we are looking to buy a house, I have saved up quite a bit of money for a deposit on the next place which is fine but it's what to do with the flat!
I could sell it but like most people I don't really want to put my hand in my pocket and pay £20,000 to get rid of something! I'm thinking of renting it out as it would quickly be rented but here is the next problem.
The mortgage company have stipulated on the application paperwork that you need to have a rental income of 120% of the interest part of the mortgage which is fine but they also require you to have a LTV of 60% which as you can see above is not going to happen. The mortgage is with NRAM. Does anyone have any experience with them in the rental applications and how likely they are to accept it?
You have to bear in mind when I start this next sentence that I hate this place!! More than you can ever imagine. Just because I can't get out of it.
I have considered just stop paying the mortgage and let them repossess the flat but then figured that would hurt my credit rating as I would default etc and they will still chase me for the excess money as well. It does say that if I rent out without their permission they will seek to repossess the place as well if they find out.
I assume this would mean you would be in breach of your mortgage agreement etc, but could they actually report anything on your credit report because you would still be keeping up with the repayments?!
Any thoughts on wha people would do would be great. And sitting and riding it out is not an option anymore! lol.