Relocation or stay and Fight?

Nickeenoo

Hi everyone, please can you help us out with our dilemma?

Unfortunately my husband has lost his job again- the 3rd time in 12 months and he is struggling to find new employment. We live in a very sought after area and in the catchment for great schools, and have been told by Estate Agents that our home will attract alot of interest. Unfortunately our mortgage is interest only and we are also under a Debt Management Plan which will take approx 130 yrs to pay back. Our dilemma is, do we:

1) Stay and fight to keep our home? Our mortgage company has given us a 50% reduction on our monthly payments for 3 months, but our income is minimal JSA and tax credits which will not cover our normal bills alone.

2) Sell our home and move into a rented property that we have found 160 miles which is the equivalent in size to what we have now. This means we could pay off all of our debts with the positive equity and start a fresh. However, this would leave us with no extra bunce.

We are being pulled in all directions by family who mean well but in doing what they are with their opinions we are stuck in the middle.

Any offers of advice or help would be very much appreciated.
Many thanks.

DVardysShadow

Are you working? Which option gives OH best option of work? Does moving offer you much prospect of work?

mikthe20

Assuming your mortgage is 100% and you have no or little equity, you are effectively renting the house you are in anyway - you're just paying the bank interest rather than a landlord rent. Peace of mind is priceless particularly with the job market as it is and all the pain of struggling on low income - if it were me I'd sell up.

Nickeenoo

Thanks so much for your replies. I do work part time but with two little ones aged 1 and 3 my time is stretched in all departments!

I do think my hubby would find work easier in the new location as he really has exhausted his options here.

My dad thinks we would be silly to sell up and be left with nothing and stand the risk of not getting back on the property ladder at a later date. But for me, I see it as paying off all our debts - yes we would would walk away with very little in our pocket but we would be clear of everything.

Is it so bad to rent a property? To rent, our outgoings would be in the region of £1300 per month as opposed to £2300 per month to stay where we are and have 130 yrs of debt hanging over us.

DVardysShadow

Property ladder! Hah! Sometimes [mostly] it is. But sometimes it is a property snake. You have to go with your own judgement here - it sounds like you are thinking through some difficult choices and I wish you the very best with that. Listen to the points that people make - your Dad's point about the property ladder is valid but not necessarily fully applicable to you - but draw your own conclusions. Take a little time over it, do your research and then act.

barnaby-bear

Nickeenoo wrote: »

but our income is minimal JSA and tax credits which will not cover our normal bills alone.
.

Surely SMI ? http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/DG_180321

Wickedkitten

Nickeenoo wrote: »

To rent, our outgoings would be in the region of £1300 per month as opposed to £2300 per month to stay where we are and have 130 yrs of debt hanging over us.

Forget the property ladder, you would be saving 1k a month at a time when you really need the money.

Mum_of_3_3

If you think your husband can get a job in the new area, I would jump off the property ladder & move.

If he manages to get a job soon, then you will be able to save the £1000 a month you say you will save & get back on the ladder in no time and be debt-free at the same time!

Good luck with everything,

M_o_3

Nickeenoo

I feel worried that we could sell something that may be of greater value later on, but my fear is that we will lose it sooner because we cant keep up our payments.

But exactly as has been pointed out - we are talking about a saving of 1k per month and that is a heck of a lot of money!!

We always seem to make the wrong decision and this time I really want to get it right.

Thanks so much again for replying.

Fire_Fox

Why won't benefits cover your bills, this should be sufficient for a basic lifestyle? Have you thought about posting your budget on the Debt-free Wannabe board for comments? While you are there do read the 'Live on £4K for a year' thread for inspiration (entire family, after rent/ mortgage/ council tax).

Are you able to take in a lodger for some tax-free additional income? Is there any overtime at your workplace, as OH is free for childcare?

Nickeenoo

Unfortunately, because this is not the first time hubby has been out of work we are playing catch up and have quite a few arrears and this is the only time we have received any help from the job centre. So I do believe benefits would be sufficient for some people to live. We just have too many catch ups to pay.

We dont have the space for a lodger, but I'm definitely going to look at the debt free wannabe thread, thank you for the tip.

But thanks for the reply.