Update - results of Ebay sale!

Bumbelina

It's been a while since I posted, but some of you may remember that hubby and I had just put a load of stuff up for sale on Ebay - books, PC games, bike gear, clothes etc and it made £550! We were absolutely gobsmacked. That has basically wiped out our overdraft and paid for christmas.

We've also decided to move house because we're in a bad school catchment area for high schools, although our eldest daughter is still only 8 so there's no urgency, but we would like to move sometime next year.

We should get about £140k for our house and are looking to buy for about £170-£180k. We have a mortgage and secured loan totalling about £90k so have a decent deposit, but we were wondering whether it would make sense to pay off our car finance (about £7k) which is on a high APR, using some of the equity when we sell. That's costing us about £200 a month, so we probably wouldn't be worse off in terms of our montlhy outgoings even though we'd have a bigger mortgage. Also, our secured loan is on 6.9% so if we got our new mortage on a lower rate we'd be better off again, even though the total amount of the borrowing would be more.

Does this make sense, or am I missing something? Our main problem is likely to be that we are both self-employed and we've been advised by a mortgage broker that we'll probably need to self-certify and won't get the best rate of interest - probably about 5.5%. Maybe I should post about this on a different site because it's not really about getting debt free!

Anyway, as always your comments would be welcome.

southernscouser

Bumbelina wrote:

It's been a while since I posted, but some of you may remember that hubby and I had just put a load of stuff up for sale on Ebay - books, PC games, bike gear, clothes etc and it made £550! We were absolutely gobsmacked. That has basically wiped out our overdraft and paid for christmas.

We've also decided to move house because we're in a bad school catchment area for high schools, although our eldest daughter is still only 8 so there's no urgency, but we would like to move sometime next year.

We should get about £140k for our house and are looking to buy for about £170-£180k. We have a mortgage and secured loan totalling about £90k so have a decent deposit, but we were wondering whether it would make sense to pay off our car finance (about £7k) which is on a high APR, using some of the equity when we sell. That's costing us about £200 a month, so we probably wouldn't be worse off in terms of our montlhy outgoings even though we'd have a bigger mortgage. Also, our secured loan is on 6.9% so if we got our new mortage on a lower rate we'd be better off again, even though the total amount of the borrowing would be more.

Does this make sense, or am I missing something? Our main problem is likely to be that we are both self-employed and we've been advised by a mortgage broker that we'll probably need to self-certify and won't get the best rate of interest - probably about 5.5%. Maybe I should post about this on a different site because it's not really about getting debt free!

Anyway, as always your comments would be welcome.

You will probably be better off posting this in the mortgages thread.

But well done with the ebay sales. :T

skintchick

CAn you post more info on the car finance, and the mortgage you'd be getting and what you've got now? Then we will know what we're dealing with.

black-saturn

Good on you with ebay. Ebay was responsible for getting me out of debt and I am forever grateful to it :j :T

bluezone

good for you. Well done

Bumbelina

Thanks for your replies - I'll go to the mortgage thread with this one