B
Bogliving
Guest
We're likely to make a permanent move overseas later this year, but like a lot of people have a mortgage and are in negative equity. We've contacted our bank who have asked us to complete a financial review form and propose some options for how to handle the mortgage whilst overseas. Just wanted to ask for opinions on our options.
Details are:
Details are:
- Tracker mortgage, owe 260k, house probably won't sell (rural area) and if it did it might get around 180-200k.
- Current repayments are about 1,200 pm (capital and interest). We wouldn't be able to afford this when overseas (and paying rent ourselves).
- Very few renting in our area so likelihood of steady rental income to cover mortgage is remote.
- Maximum rental would be about 600 pm which would cover an interest only mortgage of about 500 pm. However tax on the rent income and fee to a local agent would bring the net rental income below the interest only mortgage repayment so we would probably need to add to this each month.
- Interest only term likely to be no more than 6-12 months after which we're back to square one.
- We'd prefer to sell and repay the deficit between the sale price and the mortgage (assuming the bank will agree) over time, but local estate agents are not optimistic as there are very few houses selling, even those that are priced to sell.