House and thinking

Feelingfoolish_3

This week has been an emotional one - so up and down its unbelievable.

My house - hard to pin an estate agent down to a quick selling price but

My thoughts:
If I choose to keep the house (if Im allowed) then my concern is rising interest rates which will inevitably happen and obviously I wont be able to apply for a decent product.

People (I trust) who I speak to say I should keep the house come what may but I am just not sure, I will happily rent, doesnt bother me but I just want to make the right decision.

Any thoughts anyone? Thank you in advance x

aero1

ooo dunno Feelingfoolish, I am in the very very same boat! Want to keep the house, but will doing so mean that cash is still a problem?? if renting will u ever get back on the ladder again??

So sorry I havent helped but know exactly where u are coming from, and hope next week is a bit better for you

skylight

I think the great British public seem to have a fascination with having to own your own home and therefore they get blinded a lot by it. Its not something so prevailant with our European counterparts. I know that you trust people who are talking to you about it, but are they blinded with the own a home at all costs perception or seriously looking out for you??

I think that I would look at myself now and where I would expect to be in say 3 years. As you said, interest rates are going to rise (they have to at some point!) and what if they rise more than the average 5/6% they were at a few years ago? Could you manage a 7 or 8 % increase (and before anyone says unlikely or not possible, no-one thought that 0.5% rates were ever going to happen!) What about the job front? How secure is that? At least if you rent and you are jobless, the rent will still be paid - a mortgage would not. Any chance of getting a lodger in to help with the mortgage of you were able to keep the place??


And lastly, what does your gut instinct tell you to do with it? Its usually right, before we let our hearts get involved!

Feelingfoolish_3

skylight wrote: »

I think the great British public seem to have a fascination with having to own your own home and therefore they get blinded a lot by it. Its not something so prevailant with our European counterparts. I know that you trust people who are talking to you about it, but are they blinded with the own a home at all costs perception or seriously looking out for you??

I think that I would look at myself now and where I would expect to be in say 3 years. As you said, interest rates are going to rise (they have to at some point!) and what if they rise more than the average 5/6% they were at a few years ago? Could you manage a 7 or 8 % increase (and before anyone says unlikely or not possible, no-one thought that 0.5% rates were ever going to happen!) What about the job front? How secure is that? At least if you rent and you are jobless, the rent will still be paid - a mortgage would not. Any chance of getting a lodger in to help with the mortgage of you were able to keep the place??


And lastly, what does your gut instinct tell you to do with it? Its usually right, before we let our hearts get involved!

Skylight - I so get what you are saying

My gut, which I usually rely on is saying let go, Im not bothered about owning my house, its on interest only anyway so effectively im renting, my only one big concern is that my son is in his last year of school and then will be doing a further 2 years at 6th form and i dont want to upset him. But.... as much as I love him I have to think of the future when he is off (credit card free as he tells me!) doing his thing. Just another decision I have to make although I dont want to fork out for the BI if I choose to let go.
My job, well we have a definite contract till 2012 after then who knows....

thanks for replying and you aero, it all helps xx

MicheH

Morning. I can't really help re. keeping your home v's renting. I just wanted to say that we have no option but to allow ours to be repossessed. MY DH's father is more upset that we will not have the 'status' of being homeowners than he is about bankruptcy.

I wish I could figure generations out. My generation is riddled with borrow borrow borrow, wahoo lets have everything we want all brand spanking new and my mam's generation is obsessed with plowing everything you have into a mortgage so you can say I own my own home.

How come paths attitudes have changed so much?

suziedarkness

Hi feelingfoolish,

I had my home repo'd 2 years ago due to a marriage breakdown. I had lived in the house for 20 years and was a difficult time but in hindsight was probably the best thing that could have happened as it was a noose around my neck that was pulling tighter with every interest rise.

You need to weigh up the pros and cons of staying put or renting and be honest with yourself. Half the fear is a change in routine and the uncertainty of what is to come.

I am in my second rented property since I lost my house and I am again facing homelessness and just had to register with the counil again. Unfortunately they have not been very cooperative but this time they have to do something as all my options have been exhausted.

Generally speaking renting can be expensive but there is help out there when you fall on hard times usually. when you are a homeowner noone wants to know.

At the end of the day skylight is right you must trust your gut instinct, it is always right.

Stay positive.

Suzie

lee316

Most peoples misconception is that they own the house. Unless they bought it for cash, they don't. Mortgage companies do. So effectively renting.
Our house belonged to the local council, until we bought it from them. Worst decision we ever made, and one that was the start of our downward spiral into debt.
Now it will get repossessed. We have come to terms with it, as it has proved to be nothing than a money pit.
We feel it is the right decision for us.

sparky25

Morning,

I think if you read some of my earlier posts you will see the struggle I have faced when it came to letting my house go. I'm still hanging on now.

My situation is slightly different in that I am a single parent with 3 children under 16. They're all settled where we live, my middle child started secondary school last September and the bus route is on our doorstep and he's loving the independence.

Fear has been my biggest issue. Not knowing where we would live, how long would it be for. The list is endless.

I totally agree with the idea that we Brits are consumed with the status that owning your own property gives you. I've overcome that. I am one of 3 children and I am the only one who owns.

When I look at the lives my brothers lead from rented homes, believe me, there is no comparison. They are living their lives, I'm not.

You have said yourself that you dont have a problem renting and your gut is telling you to let go. Think you're already answering your own question. As for your son, kids adapt. I think sometimes we dont give them enough credit for how adaptable they are.

At the end of the day, yes interest rates will rise and god knows by how much but I think I can safely say all these banks and building societies will be looking to get "their" money back.

To be honest, if it were me and I had one child who was nearly off hand, I would let go but only you can make that decision.

Hope that helps, sorry if it doesnt.

Sparky25 x

Feelingfoolish_3

Thanks everyone, some really good points to think about.

As for kids adapting, yes they certainly do, my son was 7 when we moved from Yorkshire back to the NE after my divorce and he was terrific, now at 15 he is a little more bloody minded and I just want to not upset him in his GCSE year but I kinda know what I need to do for me and could see this as a complete new start.

Cheers again