Going BR - but keeping house

Jubbly1868

HI,

I know I should look through all the threads but could some kind soul save my frazzled mind.

Got £26k debt on c.cards - all non secured. Neg equity on hse of approx £11k - mgage payment of £968 & all SOA's we've done for CCCS, CAB, etc have shown we have a monthly outgoing deficit of between £100-200.

So been advised to go Br, surrender house and start again in rented. Initially shocked, we adjusted to idea until we started looking for rented accom.

We have 5 dogs and we are only being shown dives basically. I know I should see it as down-sizing and punishment for making so many mistakes with money in the past (as some of my family are viewing it which isnt helping but another story!), we are now wondering if we should try and keep our house somehow.
We have only missed Jan's mgage payment but because we are on fixed rate int-only until May 2010, are we being totally unrealistic. I know we will have accrued lots of interest etc from missed payment so is it even stupid to consider it.
Sorry OH and I are so down heartened by the few properties we have been shown that we are willing to consider anything. I darent ring the lovely CAB Advisor who has been helping us as she is likely to have a breakdown but just wanted some opinions... OH and I soooo confused which is leading to a very stressed unhappy household and the poor doggies are walking on egg-shells, as am I around sleep deprived and very grumpy OH.
Cheers guys, just tell me we are stupid to consider keeping house and I'll shut up!!! Lisa

RAS

Welcome

other will be along but it would help them to know how much a rental of a similiar house would be locally?

Also what is your current fixed rate?

Jubbly1868

Hi RAS,

There is no doubt that rental is cheaper - if we can find one to take the dogs. The properties we are looking at are ranging from £450 - £750. The initial one we applied for was £700 but CAB advisor said we'd be able to make a case for cost on grounds of diff with dogs, my health probs, and various other savings.

Just checked mgage paperwork and on Int-only Fixed rate of 5.77% until June 2010.

Thanks for replying so quickly. Head so pickled. lisa

Lensman_2

You have a fairly stark choice here.

1. Reduce your outgoings and/or increase your income by £200 a month to keep your mortgaged home.

2. Or find a rent - obviously of lesser quality.

The advantage of option 1 is that you can give it a go. If it is not working after 6 months you still have option 2.

I am sorry if I appear to be harsh to you Lisa, but you need to get your head on straight. Once it is, this stuff will be mere detail. Well, mostly mere detail anyway.

All the best.
Jim

Jubbly1868

Thanks Jim. Not harsh just the realism that we need. I know it is not supposed to be/nor is the 'easy' option that perhaps I make it sound.

OH is really worried that come end of mgage fixed int' term, the gamble is that we may not be offered such a good deal, or have to go to repayment (at about £1400 at current rate) which we just couldnt afford - especially if we want extra pennies to allow for pet insurance, decent dog food, decent human food etc!

Apart from slight raise in my medical pension, no sign of any forthcoming rises in our income so Option 1 not really an option!

Cheers for the head-clearing...