Sell 'sale agreed' house now..impact on future mortgage?

[fun]

Our current house is 'sale agreed' with no contracts signed, just purchasers deposit of 5k paid.

We had mortgage in principle, but a glitch at the last stage is rendering that null and void, unfortunately. So we will have to pull out of our purchase.

Dilemma is whether to go ahead and sell our current house and rent in our desired location for now (reason being school for kids), or rent our current house out.

We don't have enough savings for new 20% rules..We have 15%.

So we are thinking of renting and saving the extra until we can buy again. My question is would it be better for us to have a track record of paying mortgage rather than rent? what do underwriters prefer? Or does it make a difference.

Luckily we are not in neg equity and would make a small profit (20k) if we sell.
we would also 'profit' from renting out current house as its on tracker and would generate about €200 over the balance of us renting.

Any thoughts? Tia

 

[liger]

Well I just tried 1 bank the other day. Money in the bank was treated just the same as when I told them we were sale agreed.

Also you need to sort out the glitch.

 

[Guideline]

What happened to render your AIP null and void?

 

[Brendan Burgess]

we would also 'profit' from renting out current house as its on tracker and would generate about €200 over the balance of us renting.

This is the Key Issue.

Had you permission to move your tracker to the new home? I presume you had.

I think you should stay where you are as your cheap tracker will allow you to build up your savings, buy the house you want, and retain your tracker.

The long term gain is huge, even if there are short-term downsides.

If you absolutely must move, you should rent out your house for two reasons
1) It is very profitable. - The rent you receive is paying the interest in full, and probably paying off the capital as well.
2) When you are ready to buy again, you will probably be able to keep your tracker.

Brendan