Need to Move to Bigger Place but Cannot Afford

BuilderBob_2

I have been a mortgage owner for over 2 years now and for that 2 years I have been paying interest only. I still owe £109.000 on the mortgage and Im currently fixed in at 6.99% for the next 5 years. It is a 1 bed flat. In Dec me and partner had baby and desperately need to move to a bigger place of at least 2 bedrooms.. Trouble is mortgage broker has told me that I need at least £13,000 deposit and that was at a time he thought my place was worth 100.000 but recently we found out its worth between £90.000 - £95.000.

Ideally I would like to sell my current place and carry everything over to the new mortgage I think I'd be looking at a value of £125.000 in todays current market that Id need to move up to. Saving isnt going so well and was hoping to do most of my borrowing either by putting it on top of the mortgage or a loan from somewhere else??? Or is this bad? Any advice appreciated on where to go and what to do?

Thanks Lee & Hannah and Baby Lily.

andys15

Sorry to be the bearer of bad news, but you have no chance whatsoever. You are asking if you can get a greater than 100% mortgage and you would struggle to get a 95% one.

beecher

Selling up probably isn't an option either as your lender will want the £109,000 back. Your best option is probably to focus on saving up enough money to pay off your mortgage, and then go into a rental property until you can save up at least a 10% deposit. The only other option is renting out your property and renting a 2 bed property but I can't see how the sums could work out on that one.

ILW

The title of the thread actually sums things up very nicely.

BuilderBob_2

Thanks guys. I have been on to the broker who got me the deal and he has advised me of the same as someone has already said. I would basically need the 20,000 shortfall plus 15% deposit which is unachievable. So Im thinking rent this place out and me rent also.
Trouble will be top rent on this is £530 per month and the mortgage is £640 per month so Ill have to pay the shortfall, which is still better than the 20.000 plus debt I would have / need. Right?

My current property is leasehold too, so I would have to continue paying that as the landlord or would the tennant pay? I have no idea about the rules on renting sorry, forgive the ignorance. What things are the renters responsible for paying other than rent?

Would appreciate thought on all of this post please.

Thanks in advance.

treliac

Sad to say, but you seem to be in a worse position than a family on benefits, when the council would provide you with adequate accommodation. It seems so discriminatory.

I wonder if there are ever situations when councils would provide for growing, employed, families, who are unable to afford homes with the number of bedrooms they need. (Especially now the govt has issued this new definition on living in poverty.)

diable

You have a one bedroom flat so you will either have to manage with the baby in your room or in the living room and have to tough it out for the next few years until your circumstances change.

bacardi.

why not buy a sofa bed, put the baby in the bedroom and you and your partner have the lounge. Not ideal i know but is it a option?

poppy_f1

i have no such advice however if possible why not have a massive clear out - the amount of stuff people accumulate over time and keep can be amazing in finding space when its gone
I've just done it specially with clothes that no longer fit or i know i will never wear again, same with things like books and cds, these were either chucked or given to the charity shop (wouldnt have made much selling them anyway) and selling them at say a car boot sale is also an option
even things like boxes, i went thru a stage where i kept the boxes from everything i bought now most of them are all gone again it frees up some space

i didnt have the space issues you seem to have but as tesco says every little helps