Any ideas

TT9

Madstuthe1st wrote:

tesuhoha,

I can understand the position you are in, but I going to go against most of the advice on here and say that moving house isn't a problem. I think you should wait for the extension tho. I would never rent as this is just throwing money away. As an idea would you consider a interest only mortgage? I had one a few years ago as I knew that I would only be in the house for a year and repayment would of been a waste of money.

My wife and I were in the same sort of position money wise last year, but ours came from having a huge wedding and then a baby. We moved house, had only been in that one 6 months. We wanted to extent and sell within a year, but have decided that we are going to stay a little longer and save the money for the extension.

:eek:
My goodess, I'm surprised you're allowed out of the house on your own.

In two sentences you 'will never rent' then suggest 'an interest only mortgage'. :mad: .

AN INTEREST ONLY MORTGAGE IS RENTING FROM THE BANK !!!!!!

Chortle_2

Madstuthe1st wrote:

I would never rent as this is just throwing money away. As an idea would you consider a interest only mortgage? I had one a few years ago as I knew that I would only be in the house for a year and repayment would of been a waste of money.

To my mind an IO mortgage is effectively renting - just from the mortgage company rather than a landlord Don't really get your logic there Madstuthe1st!

climbgirl

To be honest, you've left it a bit late to ask for advice as backing out at this late stage when your offer is accepted and you've already paid for the legal fees, survey fees etc isn't really an option!

The short term mortgage is great though, paying it off in 9 years is very smart. I'd hold fire on the improvements, I'm assuming the house is liveable! Focus on the debt first, don't take on more debt to do up your house, that can wait.

People say that renting is 'dead money' but that's not automatically the case! You need to crunch the numbers and it's not an easy thing to do but you need to consider your length of mortgage, interest paid, deposit etc. Sometimes you are better off renting for a while and saving for a much higher deposit so you can take out a smaller mortgage and pay less in interest over a shorter term. That's very oversimplified, but you get the idea.

tesuhoha

Chortle wrote:

To my mind an IO mortgage is effectively renting - just from the mortgage company rather than a landlord Don't really get your logic there Madstuthe1st!

Repayment mortgage already set up, over 9 years.

alecpr

I only get your debt at 27K+"High ammount"... your total says 179K?

In your case considering your habit of spending on 0% cards I would not be stoozing to raise cash, it only puts temptation in your way. I've added the Egg money to the debt and balanced it with savings of the same ammount. I'd recomend using those savings to pay cards which run out of 0% offer first.

Taking mid points for your variable incoming, you are running at about +£10 per month, I would suggest this is going to change quite dramatically when all those 0% offers come to an end, at a conservative 14% per anum you will add £300 per month to your outgoings. Your outgoings don't include car/house maintenance, insurances etc etc etc. On top of that you talk about moving house (increasing outgoings by £230 per month and debt by £34K).

I don't think anyone can offer much in the way of advice becasue as has been mentioned above I don't see the light bulb moment. Until you start to seriously question what you are spending on and why you are doing it, no amount of advice is going to help.

Once again I'd agree with the posters above, look at the amount you are spending on your kids, not only are you putting yourself in to debt but you are allowing them to go through the early part of their lives with no appreciation of the value of money, you could well be leading them in to the same situation as you find yourself.

Look at your incoming compared to your outgoing, it isn't healthy or sustainable right now, why on earth would you be considering buying a new house!?! I realise you may not be in an ideal area, but I'd consider renting before risking a new purchase in your current financial situation - Edit: you have already commited... in that case spend as little as possible on improvements. Increase the mortgage to pay for the debt you have racked up on the cards.

Getting out of debt is leaving the "I want" mentality behind and replacing it with a "Do I need?" one.

Madstuthe1st

I know Interest Only can seem like renting, but it depends on your situation. It was another suggestion, maybe something they hadn't thought about. You get the house you want, and change to a repayment at a later date.

I did it 3 years ago, knew I'll be there for only a year. Wasn't sure if I would keep it to rent or sell, so went for IO. There was a risk, but one worth taking in my option.

I'm not saying this is a good way, just another way.

Tondella

tesuhoha wrote:

It wouldnt cost us anything in labour to do the improvements, and he will do it gradually like he did this place. Also, he gets everything at trade price, being in the building trade. I'm going to suggest to him that we pay off debts first. But yes youre right about the move but some people move several times in their lives. We have been here since 1987.

It will cost you your OH's lost earnings, why not draw up a list and prioritise what work needs doing when, that way you can release/find funds for each piece of work one at a time.

tesuhoha

Oh I SO dont knowwhat to do now. Im going to go to town and pay my OHs cheque into the bank and think about it.

livilou

take 5 hun, we've all bombarded you with advice, go have a break and have a think and then maybe sit down with hubby and have a chat.

maybe look at the two scenarios, draw up a list of pros and cons for both - i..e moving or not moving. what difference it will make to your debt free date, hubbies health etc.

go buy yourself a nice big cream cake to have with a cuppa when you come back!!!

take care
x

tesuhoha

Thanks I really do appreciate all the advice. You have certainly given me a lot to think about.