Should I rent or sell?

[want2findout]

I recently moved in with my partner and have since put my house on the market. The plan was to use the profit made on my property (approx �35k after clearing some debts!) and use this to go halves on my partner's property therefore minimum outgoings and a chance to save for a bigger and better house in say 2 to 3 years time.

I accepted an offer on my house approx 4 weeks ago but the sale has fallen through. I am now wondering if it would be worth me holding on to my house and renting it out? The house is on the market for �92,500. I have approx �45k left on the mortgage. I have been been advised that I could get approx �450 per calender month. My mortage repayments are currently �307 per month although it is now time to remortgae as I have come to the end of the fixed rate term.

If I was to rent the property what would be the best option with regards to mortgage? interest only or repayment?

I would appreciate any advise.

Thanks in advance

[fairline]

Almost certainly the property will be worth more in 2 - 3 years time, therefore rent it out. remortgage on a new fixed rate deal and make some capital repayments to reduce the amount owing. Get a tenant in asap. That way someone else will be paying the mortgage, your equity will be increasing and you will have saved the selling costs. Use a reputable letting agent. Try www.martinco.com

[want2findout]

Thanks for that.

[WendyS]

Don't know how long you've known your partner, but are you 100% sure this relationship will never break up, because unless you are pretty certain about it, you could be very foolish to leave yourself without a fall-back property in which to live, especially if property prices keep rising. So I'd keep the house and rent it out so you still own a rising investment..
If I were in your shoes I'd go for a repayment mortgage so you know every year how much you are paying off. If you go for interest only and are relying on some kind of with profits endowment property to fund it, if the stock market doesn't perform you could be left with a large deficit at the end of the loan period.