Oh No

winner12

Hi
In debt (previous posts)sorting on DMP but im sure everyone trys to think of solutions I put a question about mortgages on the forum and got a bit of a rebuf
My Question though is do we
Sell the house pay off chunk of debt (all in my name)buy a smaller property (pay less mortgage)my partner has no debt but still wants to own a property he is very supportive but with the property market how it is I went down the DMP route for peace of mind (could be a long haul)but I was told to rent as I cant afford to buy(poster on mortgage site) what do you think is it not a route out of the mess I got us into

Marisco

Hi winner, yes your idea sounds fine in theory, but it is dependant on so many things!!! Can you sell the house for the price you want in today's climate (which according to the news is getting worse:eek:) Can your partner get a mortgage on his own, as (I'm not sure mind!) but should imagine that your DMP will be a bit of a handicap. Can you afford to pay off the debts and have enough left for a decent deposit? Is it possible to stay where you are for now, keep paying your DMP and then move when (if) the housing market picks up?

winner12

Hi yes these are all the questions I have thought of too I try not to listen to scare mongers on the news my partner has a good job and we would have some left for a deposit we can move in with sister in law once sold(short term) while we sorted our finances but my partner is determined to buy again so this is my dilema

winner12

Oh and forgot to say DMP is mine not his

Marisco

Although the DMP is yours, it can still be linked to your partner through address - unless the mortgage is just his not joint, and he intends to get the next mortgage on his own. Personally, if you are managing to pay everything, with no problem, they I'd stay put until things pick up.

winner12

I thought it had to be linked in name not address to affect your credit file we are not married

Marisco

If it's a joint mortgage it will be linked, or if there are any joint bank accounts. I'm not sure if, when they do a credit check on your oh, whether your name will flag up because of address. I'm sure someone who knows will be along soon;)

winner12

Thanks Marisco for info everything these days is all if buts and maybe just trying to look at things differently now my head is clearer since facing upto my debts have looked into rental prices they are expensive too so not sure what the best thing is clear debts have a chunk tied up in the house to do this and start again

happycamel_2

could you release equity in the house that you're in by:
1)renegotiating the term. So it takes longer to pay the debt down but you pay less each month?
2)increasing your mortgage balance (you'd need to negotiate this with with the mortgage company)
3)negotiating a payment holiday (would have the effect of increasing the term)
4)changing from repayment to interest only

All these things would cost you more money in the long run but would have the same effect as moving house but without the moving costs. Bear in mind that if you default on your mortgage you could eventually lose your house.

Good luck

winner12

Hi happycamel
Did think of that too but doing that also increases the debt at least if we downsize it reduces the debts and the mortgage

podperson

Hi winner,

From a purely practical point of view (and from personal experience since have been trying to sell for nearly a year now!!) the housing market is not great at the moment so could take you quite a while to sell the property and then would be lucky if you got what you felt it was worth. If you are managing with the dmp at the moment then might be worth just sticking with that for a bit longer and hopefully things may pick up.