Sell house to downsize and to repay debt.

di3004

Please could anyone give opinions on this please.

For the last 2 years we have been wanting to sell up, but never got round to it, our house is worth approx £150K, yes we do have unsecured debt due to hubby being unemployed etc and paying token payments at the moment.

We purchased our house early 2000's and we do have arrears as well, this would be the first time for us to sell the house, and not have a clue how this works, as we purchased our first by council right to buy.

We do live in a 3 bed property in what you would call a selected area, and if it takes us to downsize or go to a less valued property to help also pay off debt then that would be cool.

However, I know there would be charges and fees involved, and would like any advice on this matter if possible, as want to do things for the right reasons as well.

Just not sure if it works out this way..........with arrears as well.

Thanks.;)

bunny999

How much equity do you have in the house ? Do you have a large enough income to get a new mortgage? Also as you have a bad credit history you will probably find it difficult to get another mortgage. If you were to sell you would have to pay legal bills, estate agent fees and mortgage arrangement fees and stamp duty if you buy a new property (this would add up to a few thousand at least).

di3004

bunny999 wrote: »

How much equity do you have in the house ? Do you have a large enough income to get a new mortgage? Also as you have a bad credit history you will probably find it difficult to get another mortgage. If you were to sell you would have to pay legal bills, estate agent fees and mortgage arrangement fees if you buy a new property (this would add up to a few thousand at least).

Hi there thanks for your response.

Unfortunately hubby lost his job originally because the plant went into adminstration, along with a few hundred workers, this year it was unfortunate to have arrears and the first time ever. Although the actual arrears have only been the last few months.

I do have lots to work out before thinking of moving anyway, hubby will have to return to new employment for a start, which hopefully will be soon, fingers crossed, I care for my son with autism full time, but hopefully things will soon fall into place.

With all this being new to me, I thought I should ask more on this first, to know what to expect.

The value stands at approx £150K

Balance at approx £114K on mortgage, no other secured debt.

£20K unsecured debt tops.

Thank you again.;)

bunny999

Given your circumstances selling and buying a smaller place really isn't an option at moment. I think your priority has to be paying your mortgage to avoid being losing the house. If you post an SOA we might be able to make money saving suggestions.

di3004

bunny999 wrote: »

Given your circumstances selling and buying a smaller place really isn't an option at moment. I think your priority has to be paying your mortgage to avoid being losing the house. If you post an SOA we might be able to make money saving suggestions.

Thank you so much Bunny999.;)
Yes I see what you mean.

We are under the CCCS at this time which will be due to be reviewed shortly, and currently sending monthly token payments, all to that of Lloyds TSB.
I will fix up a SOA anyway and get back, cheers again.;)

misspoppy

Hi

If you are with CCCS you need to look at why you've got into arrears with the mortgage. Are you speaking with the bank regarding this? Are you claiming all the benefits you are entitled to?

di3004

misspoppy wrote: »

Hi

If you are with CCCS you need to look at why you've got into arrears with the mortgage. Are you speaking with the bank regarding this? Are you claiming all the benefits you are entitled to?

Hi there misspoppy,

We fell into arrears the last few months, paid a big bulk off it with help from hubby's union, he still currently pays since the plant closed down where he worked, he pays £4 a month union subs, and his union contributed £2K towards the arrears, so its more than halved it.
So we are in regular contact with the bank as well, on a monthly basis also paying what we can by paying token payments to unsecured creditors for now.

Hopefully hubby will be returning to new employment very soon, the plant have been taken over and he is on top of the list to go back fingers crossed, the pay is excellent and will be a great help to get back to normal again.

My hubby claims income based JSA, myself Carers as I care full time for my son with autism.;)

Thanks for your post.

GeorgeUK

Have you claimed back any credit card charges, bank charges or missold PPI?
Have you checked that your property is in the correct council tax band?

Can't think of anything else, but if i do, i'll let you know.

di3004

GeorgeUK wrote: »

Have you claimed back any credit card charges, bank charges or missold PPI?
Have you checked that your property is in the correct council tax band?

Can't think of anything else, but if i do, i'll let you know.

Hi George
Thanks for posting up.;)
Have a few ongoing with lloyds tsb in regards of PPI, with them also being the ones we have debt with, and paying token payments, they have been difficult to deal with.

That is one thought though, the Council tax band, cheers, will check this one out as well, cheers so much.;)