Fixed term mortgage ending - what to do with house?

Hi folks - I am looking for some guidance / thought / help on how to handle my case. I am a high rate tax payer with a personal BTL (previous main residence). I am caught on the wrong end with fixed term mortgage coming to an end in 6 months time. With the current BoE rates increasing weekly, when i come to mortgage renewal, i will struggle to break even on financials. The options i can forsee are:

  1. Increase the rent - if i am going this route, i was planning of letting the tenants know personally and give them as much notice. I will have to increment the rent above 10% to make the numbers work. Has anyone done this and is it legal to increment the rent >10% when fixed term ends?
  2. Sell the house - just started off on BTL route and my plan was to have this as a retirement income. wouldn’t want to go down this route ideally
  3. Convert to furnished holiday let - any insights from anyone who has done this? is it possible to rent to same tenants as FHL ? As i am reading more, i am learning that this is a more tax efficient route .
  4. Any other suggestions?
    I am fairly new as a landlord and is still reading out. Appreciate if anyone can guide or help with some suggestion on how to approach the issue pls.
    Thanks a lot.
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I can understand that this is a really difficult situation. Being a landlord is a long game not a get rich quick scheme. Consider if you can make a loss for a longer gain down the road. There are more things to consider like the likely costs of maintenance/EPC work over the next 5 years. Look at you 5 or 10 year plan for each of the options. We can’t answer the situation for you. - Personally we are selling one and keeping the property that we love but changing the model. Be wary of a model where you just factor in an inc in the rent.

Do you mind me asking what model are you changing to? Holiday lets?

We have had 3 students in our property which made it a licenced HMO (in our area) Model changed to have a single household so no licence and we will spend 100% of the next 2 years income on double glazing and insulation- ie we will pay no tax. However there are also other considerations for us. It would not make a good Holiday Let and the 5 year plan included the potential that one of our children may wish to move in. Each case is very different.

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