bishbosh
Member
Registered: 25th Sep 06
User status: Offline
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I want to rent out my house in the next year or so and move on - theory being it'll be a retirement fund.
What is the procedure and what do I need to bare in mind? i.e. Insurance etc
Also, do I need to have a decent amount of equity available and do the repayments need to be lower than the rental value?
Any help would be appreciated
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Colin
Member
Registered: 4th Apr 02
User status: Offline
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Where are you going to stay?
Technically you should switch the mortgage to a buy to let.
If the equity's not there and your not bringing in more than the repayments then its probably not a good idea!!
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bishbosh
Member
Registered: 25th Sep 06
User status: Offline
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Im just thinking of moving on to a new house - the equity is there, im just currently paying 1200/mth over 12yrs. the house would fetch £500/mth.
so i would need to switch the mortgage to a 25-30yr to bring it down.
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Cosmo
Member
Registered: 29th Mar 01
Location: Im the real one!
User status: Offline
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You're going to need something like 25% deposit to get a BTL mortgage, and they'll want to see that the rental value is worth more than what the monthly cost then becomes.
Plenty of mortgage calculators out there to give you a basic idea of what the mortgage would cost you.
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