sammye Posted October 22, 2010 Report Share Posted October 22, 2010 Hi everyone, I hope everyone is ok. Just trying to get some advice on what is best to do? Wonder if anyone would be kind enough to pass on some of their wisdom. I bought a one bedroom Flat 2 years ago for £112,000 and gave a 5% deposit at a fixed rate of 6.9% for 5 years mortgage over 35 years. I know it was a very poor rate but at the time I had no choice really. My mortgage payments are £690 a month plus a maintenance charge of about £35 a month. I moved out a couple of months ago and now rent via the council for £648 per month and I have moved in with my Dad so that I can save, hopefully about £1,000-£1,500 a month. Being a newbie to mortgages and the like I'm not sure what it would be best for me to do, now or at the end of the mortgage and just wondered what you guys would do in my position? Cheers Link to comment Share on other sites More sharing options...
Mortitia Posted October 23, 2010 Report Share Posted October 23, 2010 Mmmmm a difficult one to advise on! I would take a guess that the value of your flat will increase in the coming years and so will the rent but in the meantime you are losing money. Can you up the rent to the council and unload the management charges onto them? Or could you get more by renting out in the private sector? Only you can decide if selling up will get you the price you paid or more (or maybe less) but then you will have fees to consider to add to your costs. If it wasn't crippling me I would hang on til better times and re-mortgage as soon as I could to a better deal. At least you are on the ladder! Not a very positive answer for you I'm afraid. Mortitia Link to comment Share on other sites More sharing options...
sammye Posted October 25, 2010 Author Report Share Posted October 25, 2010 Mmmmm a difficult one to advise on! I would take a guess that the value of your flat will increase in the coming years and so will the rent but in the meantime you are losing money. Can you up the rent to the council and unload the management charges onto them? Or could you get more by renting out in the private sector? Only you can decide if selling up will get you the price you paid or more (or maybe less) but then you will have fees to consider to add to your costs. If it wasn't crippling me I would hang on til better times and re-mortgage as soon as I could to a better deal. At least you are on the ladder! Not a very positive answer for you I'm afraid. Mortitia Oh no that is really great advice thanks alot Mortitia, I really appreciate you taking the time to reply. Its pretty much what I was thinking of doing I mean its not crippling me at the moment so perhaps its a case of better the devil you know. Cheers for the advice very helpful Sam Link to comment Share on other sites More sharing options...
jaynemoore Posted October 27, 2010 Report Share Posted October 27, 2010 Hi, some advice available here too:- www.lettingexpert.com Link to comment Share on other sites More sharing options...
sammye Posted June 14, 2011 Author Report Share Posted June 14, 2011 Just thought it was worth me updating my position. Shortly after posting I started overpaying on my mortgage and overpaid 10% last year and have nearly overpaid 10% this year. So means I am making a slight profit of about £100 on the flat. It seems my mortgage provider Bank of Ireland needs to raise £4.3bn by end of July so it may be that I can get out of the early repayment charge of about £5k.... because I was overpaying I will be able to get a better rate and can remortgage so should make £300 - £400 a month on my property... (not a fortune but a much better position than before). Link to comment Share on other sites More sharing options...
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