OK so house prices are low, exchange rate is crap... is there a worst time to sell up and take your cash to OZ?
I've been doing a few sums and have a Plan B, not sure if its a great plan B, and it certainly wont suit everyone, but here goes
House worth £300K, but in current market would probably sell for £250
mortgage is £150K
exchange rate is 2
if sold now could expect AUD$200
if sold when markets were back to normal could expect AUD$375
Re mortgage house with IF interest only offset mortgage at £210K, putting £60K in offset account, meaning you only pay interest on £150K, which is approx £850 PM, with mortgage being paid from offset account.
rent out house for £900PM, paying 15% agent fees, means you get £765 paid into the offset account... yeah this is less than the interest, but you are only out by £85 pm
Rent house for 3 years, budget for a loss of £4K, hope for economy to improve by then and sell house bringing money into OZ ($375), if everything improves before then, sellup and pay the penalty fees, it will still be better than you will get now.
If you need cash for OZ then take it out of the offset account, this will increase the interest you are paying, but note that you will be paying interest at UK rates not the higher OZ rates, note the IF account has 24 hour phone and internet banking, so you can manage it from Oz.