Property Solutions to Sell Your House Fast For Market Value
You should only sell your house to move if you have to, as it is possible to convert your mortgage to a buy to let and keep your house as an investment instead. You could also use the new buy to let mortgage to withdraw some of your equity for your deposit on your new home.
Mortgage lenders require the rental income to be 125% of monthly mortgage payments for basic rate tax payers and 145% for higher rate tax payers for interest only buy to let mortgages. But the interest rate used to calculate the mortgage payments is the stressed interest rate not the actual rate.
A mortgage stress test is calculated using the stressed mortgage rate to stress mortgage payments against monthly rent should interest rates rise. The stress test calculation takes account of interest rate cover ratio (ICR) which is 125% for basic rate tax payers or 145% for higher rate tax payers.
To calculate the minimum required monthly rent for mortgage rental cover, the formula is: The Proposed Mortgage Amount * Stressed Mortgage Rate / 12 * Interest Rate Cover Ratio (ICR) = Required Monthly Rent.
When a property is listed with no onward chain, it means that the person selling the property isn’t purchasing another property with the proceeds from the sale. This means the sale can complete faster, as the seller does not have to wait to find another place to move into before they can sell.
: You should paint your house before selling, which includes painting the front door, windows and any outside render for a first good impression and paint the interior of your house too. A fresh coat of paint sets a house off well and will make it look loved, plus the rooms will look bright and airy.
