Any advice please?

Funky01

Hi all,

This is the story - hope someone can help us.

My husband and I have a mortgage on our house, which is fine and has no arrears etc or anything like that. We also have debts, mounting to around £50k I guess between us, all of which are paid for on time etc. No problems.

Recently we had a real stroke of bad luck and both got made redundant! :eek:

I was made redundant first and we made the decision that I could start my own business, as we could cope moneywise whilst I got it up and running, but then husband was made redundant too. We decided he should look anywhere for a job and he found a great one which meant relocating. This was good though as we wanted to move to this other area anyway at some point, so all looked rosy. I am still not working as I still want to start my own business and wheels are in motion for that, but also, with moving house to a completely new area, its not ideal for a new business or a new job.

Anyway, we have around £92k outstanding on the mortgage and after recent valuations, have around £55k worth of equity. The mortgage we have is a portable one, and so, in theory, we could buy another house for maybe £5k less than we sell ours for and not be out of pocket.

However, ideally, to get the perfect house, we need around an extra £15-£20k. The mortgage company have just advised us that with our current commitments and situation (i.e husband in very new job and me not working for anyone, and with debts to pay), they wouldnt lend us anymore at the moment. They said they's reconsider in around 6 motnhs, but no guarantee.

Our house will sell quickly, we know, as it's a sought after house in a good location, so we need to decide what's best to do.

Does anyone know of anyone who would consider a new mortgage with us?

Or any other advice about what we should do generally?

Would appreciate any help.

Thanks.

homer_j_3

I guess that you would be best speaking to a broker to look at your full financial situation and let them source you anything that is available. It is too difficult to tell from the information given, however, doesnt look good on the surface.

It will be impossible to say what will happen once your H starts his new role in terms of whether a lender will look at him because they normally like to see stable income historically aswell as at the time.

Is there any way your H can commute from where he is at the moment?

Have you considered selling, renting for 6 months and then getting back into the market? I know that there are risks in doing this but you will have to work out whether it is one you can take?

Funky01

Hi Homer,

Thanks for responding.

He couldn't commute really as it's a good 2.5 hours each way.

I did wonder about renting as an option. Just wasnt sure if it was a good thing to do or not. What do you think are the risks?

This is all so frustrating! Just want to move and be in a nice house with my husband, and running my own business! Not much to ask really, is it? :cool:

Thanks for taking the time to respond to me.

Funky

homer_j_3

Not a problem..

The real risk about coming off the housing ladder is that you could end up paying more per month on rent than you would on the mortgage and if the housing market prices in you area are growing then you could find that you cannot afford the property you want once you are in a position to buy (i.e - once your husband has got settled into his job).

Clearly the housing market might decline and I know that there are various views on this and should that happen then you could have made a good move as you will get a lot more for your affordability in a declining market.

As I said, I do not know your situation in full and can appreciate that 5 hr round journey would be not wise to do on a regular basis.

What income will you be able to declare once your H starts his new role?

Can you find any rental prices for the area?

Is there a halfway house type solution, move within say an hour of the area and get a cheaper property? You said that your current lender would not lend you any more but I wasnt too sure if they would let you port the same mortgage amount to another property?

Funky01

I guess I should have given a bit more info really, but I'm just cagey in case people I know happen to come across this and realise it's me!

Anyway, our current mortgage is portable, so we can in fact sell and move to a property within the same price range. Maybe £6-10k less to allow for fees etc. Which isnt completely bad news as the area we're moving to is a bit cheaper anyway, so it's not as dismal perhaps as I made it out to be.

However, houses take a long time sell in the new area, so my concern is that if we buy a house just to get us over there - a house that's not as good as we'd really like basically, and then when we can finally buy a better one, we may then have to wait ages for a buyer. Some houses in the new area can take 6-12 months to sell! We're looking at properties that have been on the market since April last year in some cases, but the Estate agents say that;s normal.

So, our predicament is, do we buy the cheaper house (still a nice house I have to admit), and just move the mortgage, therefore staying on the property ladder and all that, but then risk not being able to move again for a while, or do we sell up and rent and hope that everything goes our way and then buy a better house in 6-12 months or whatever?

I'm a bit of a dreamer too, so I find it hard to accept things if it's not my ideal! Even though I know some options are more sensible than what I want to do!

I dont know what my income will be really. I hope to raise the equivalent of around £18k a year, but its a new business, and so who can say? I'll be happy enough to just earn enough to pay my debts and help out with the joint stuff initially!

Thanks.