request interest only while selling property

S

sunnywalk

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I am considering selling my house as I am changing jobs to a different part of the country. I have tracker mortgage with ulsterbank and I am 10 years into my mortgage I believe the house is currently out of negative equity. I was considering discussing with ulsterbank their moving house offer (keep tracker for 10 years) as I have to move quickly for new job and will have to pay rent in new location. Do you think bank would agree to interest only until house is sold and I have found new property?
I did consider hanging on to property and renting it out.. esp as house prices rising, have looked into it, but the horrendous tax ( higher rate taxpayer), loss of ppr status and risk of troublesome tenants puts me off a bit!!
Interest only until I sell property would help financially.. i have a good history, never being behind on payments. Took a 6 month repayment break last year due to health reasons but that was an"allowable" break and was in the terms and conditions. Do you think bank would be ok with it?
 
sunnywalk said:
Do you think bank would agree to interest only until house is sold and I have found new property?
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Not an option that any bank would consider unless your financial circumstances were such that you could not afford to meet the repayments in which case you would need to submit a Standard Financial Statement to the bank.
 
44brendan said:
Not an option that any bank would consider unless your financial circumstances were such that you could not afford to meet the repayments in which case you would need to submit a Standard Financial Statement to the bank.
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Thanks Brendan for your quick response.

Full repayment mortgage and rent is a stretch especially as house could take a few months to sell. If I did submit a financial statement would that affect my credit rating in getting a mover mortgage?
 
While I acknowledge that the additional rent payable until your property is sold will effect your cash-flow I'm not sure that UB will be enthusiastic about a further request from you to take a payment break. It should not effect your eligibility for a mover mortgage at the same level of loan facility. However, I'm not familiar with the criteria for a UB mover mortgage and there is a possibility that it could turn out to be a negative factor.
 
I don't know the ub mover mortgage rules but the constant advice these days is sell and buy. the market is way too fraught to consider the buy sell option
 
Rent won't cover mortgage esp with costs, tax and loss of trs. However rent after costs would easily cover rent in new location.. something to think about.
I would want to be certain I could get a future mortgage before selling as I know the rules have changed so much since 2005!
 
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