So much Debt & want to buy house- any way out?

Annie_Fanny

Nocashkate - would you like to post an SOA (Statement of Affairs)? This thread will help you with it:

http://forums.moneysavingexpert.com/showthread.html?t=107280

From the information you give us we may be able to help you cut back and any money that is cut back can be thrown at your debts.

Also in the post above have a look at the snowball calculator.....this will give any indication of how quickly you can pay your debt off.....please be prepared for it to take a bit longer then you may be anticipated.

Coming on here Kate is the best thing to do. If you see your debt as a CHALLENGE rather than a worry or stress this is the best way to go. Just think 'all hands to the pump' so to speak and you will be out of debt in no time and saving for your deposit!

Good luck!

Annie

nocashkate

Should i post on this thread or seperately?
Think would be helpful, thanks for support
x

brasso

Personally, I certainly don't dismiss 100% mortgages. That's how I started. I was in a low-paid job and could never have saved for a deposit.

Trouble is, there is a risk involved and you have to decide whether to take it. The gamble is that property values will increase disproportionately to the cost of living in the shortish term. If they do then you can sell, and with the profit, afford a deposit on the next one, and therefore improve your finances. The risk is that values won't increase in the short term.

I'm a risk-taker, and I would look at that option. However, you must keep your eyes open and realise that it may not work out.

What you might want to do is make a business plan as if you were setting up a business, and look at all your options e.g. you might want to consider buying a house and renting out a room. Or getting together with another family member or couple and pooling your resources. Or do you know someone who could (for instance) lend you 20% for a deposit, with the promise of 20% of the eventual profit? Have you looked at one of these 50 year or 100 year mortgages I've read about?

I'm not recommending any of these things, but just trying to encourage you to think 'outside the box' a little and accept that it's while it's impossible for you to waltz into your dream home without problem, there are ways and means if you think hard enough and accept a couple of years of mild hardship.

You get a lot of good and interesting advice on these forums, but a lot of us are pretty conservative, especially those of us who are now relatively comfortable. I think sometimes we forget that when we were buying our first homes, most of us got into financial scrapes, or told the odd minor porkie to get the mortgage etc.

I would go for it, but only if it wasn't going to leave me hopelessly exposed. Have a Plan B. You can do it, but you may have to be creative.

Best of luck.

Annie_Fanny

Best to post an SOA in a seperate thread - people like fresh blood! Hee hee!