Sell house and rent? Please help!

cheryl1974

Hello, I am new to this website and was after some help. I bought a house in August 2007 and at which point also took out an unsecured loan in addition to the mortgage to pay off various debts. We are now desperate to move out (the area we bought in turned out to be not to great) Due to the money we borrowed in addition to the mortgage we are in negative equity and cannot see our house ever been worth what we paid for it (especially with the money we borrowed on top). I wonder if anyone can advise, what I would like to do is sell the house for hopefully as near as we purchased for - then just come to some arrangement with Northern Rock on repaying the unsecured loan. We would save at least £300 renting and this could go towards repaying the unsecured loan - is this possible to do? Any help would be appreciated.

blunt_crayon

Depending on the area you may not be able to sell the house for near to what you purchased for. Check www.landregistry.co.uk for house prices in your area. You'll also have to pay legal and estate agents fees if you sell.

How do the figures stack up if you were to rent out your current house and find a cheaper place to rent to live in? You could then use the money you save to pay down the loan.

cheryl1974

Thanks for the reply so quickly! I have used Zoopla as a guide price and done a little research into houses of a similar style/period etc and we come under by about £4K. If we were to rent out we would save around £300 per month which I would use towards payin off the unsecured debt but would Northern Rock accept this arrangement. We are paying a huge amount of cash out per month (mainly because of the unsecured loan on top) and this isnt moving - the loan incidentally was taken out over the same period as the mortgage - very angry with myself for taking the financial advisors advise at the time! Just want out now - as I mentioned the area we live in is getting worse by the day :mad: