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housing association, shared ownership.
andy73_2
Posts: 1 Newbie
hi. just wondered if you could give me any advice on my situation.
brief outline-
Lived in the same house for 15 years through housing association with a 50/50 split. bought the property for 40k. So 20k mortgage and the rest is rent.We have a small mortgage left of around 13k with 10 years to run. We have debts of around 30k being managed through a debt management company paying £200 per month. I have a bad credit rating through previous problems which are being sorted through the debt management. At the current prices the rough valuation of the property is around 135k. i would really like to sort out my finances and start fresh. I will never have a good enough credit rating for a mortgage or loan without paying off debtors. Due to the housing association i cannot release any equity from the property. So i am considering selling the property and using the 60k (50% of prifit approx)to pay off debts and start over. This would mean a spell of renting i guess until finances are sorted. Then hopefully a mortgage and start over. I have a family, 36 years old and self employed. This all sound a bit drastic but really want to sort things out and live a bit more comfortably. Any alternative ideas, suggestions or advice would be appreciated.
brief outline-
Lived in the same house for 15 years through housing association with a 50/50 split. bought the property for 40k. So 20k mortgage and the rest is rent.We have a small mortgage left of around 13k with 10 years to run. We have debts of around 30k being managed through a debt management company paying £200 per month. I have a bad credit rating through previous problems which are being sorted through the debt management. At the current prices the rough valuation of the property is around 135k. i would really like to sort out my finances and start fresh. I will never have a good enough credit rating for a mortgage or loan without paying off debtors. Due to the housing association i cannot release any equity from the property. So i am considering selling the property and using the 60k (50% of prifit approx)to pay off debts and start over. This would mean a spell of renting i guess until finances are sorted. Then hopefully a mortgage and start over. I have a family, 36 years old and self employed. This all sound a bit drastic but really want to sort things out and live a bit more comfortably. Any alternative ideas, suggestions or advice would be appreciated.
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Comments
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There's a debt free wannabee board that could offer suggestions for how you can sort out your debts which doesn't necessarily involve selling your property which only has a modest mortgage and is a drastic step.
Will your current outstanding debt be repaid in full within 12.5 years by your current schedule of repayment? That's how long I've calculated it will retake to repay 30k at £200pcm but obviously I haven't factored in any additional debts or interest so this could be unreliable. Is there any way you can accelerate the repayment?
There's a Budget planner spreadsheet on the 'Free tools' section of the website on the right handside.
Remember the 20k that you've estimated you will be left with after the debt has been paid will also have to cover selling, removal and then potentially buying or rental costs that could swallow up quite a few thousand, too. There can also be a big difference between a property valuation and eventual selling price.0 -
Just remember that any debt or defaults stays on your credit file I believe for 6 years....0
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