Remortgage to move but have big debt

inbigdebt

Long old story of how the debt has built up, all around a failed attempt at bettering ourselves being stopped by the recession.....but I owe around £50k. I have these on repayment plans that are frankly embarrassing. I am in a situation though that we desperately need to move for the sake of our family.... we have a mortgage and am not in arrears with it..... home value £230000, mortgage £113000

I spoke with an advisor and he explained that any lender for situations like this look at what repayment of the debts should be and that affects affordability....

Anyone any other ideas - renting would cost me £400 a month more than I pay now.... but not moving could cause divorce and much family heartache I'm mentally not capable of dealing with..

Practical advice please not just people saying tough luck buster - believe me I know I am in a real pickle - don't need people who don't know me making comment... Thanks

Thrugelmir

What are you trying to achieve by moving house? As its not entirely clear.

powerwin

Could you rent out your current house and then rent yourself a house?

Rgds

beecher2

Sell home for £230,000. Pay off mortgage and debts, leaving £67,000. Use as a deposit for next place. You haven't given enough information to know if this is doable or not - if it isn't, then do as above but rent.

shortchanged_2

Why do you desperately need to move for the sake of the family?

Is it because you need a bigger place?

Because if that is the case then I feel you are in a bit of a pickle.

inbigdebt

mixture of reasons for move - need to be away from disruptive influences, fresh start, better for children... don't need anything bigger just similar....

It is more a matter of anyone had similar situation and what they did..... sadly my mortgage I believe has no portability clause otherwise I could do that.....

Just a pickle I am in, no easy answer, either way there's some pain ahead, and no easy answer....

Cheers so far

hcb42

even if your mortgage is portable, you have to meet the current lending criteria, there is no easy answer

Thrugelmir

inbigdebt wrote: »

sadly my mortgage I believe has no portability clause otherwise I could do that.....

You would still need to meet current underwriting criteria.

As others have suggested. Sell and clear your debts. Then either rent or downsize and rebuild your life from there. £50k of debt is ultimately going to drag you under. Better to be pro-active.

LillythePink

Then realistically, you need to sell, pay debt off and put the balance to a new house.

Does your OH know about the debt?

If not, then you should tell him/her as they may have unrealistic expectations about how quickly/easily it can happen.

What thoughts have you had on all of this??? I know that you have come on here for advice, but surely you have had some ideas etc?

DVardysShadow

inbigdebt wrote: »

.... Anyone any other ideas - renting would cost me £400 a month more than I pay now.... but not moving could cause divorce and much family heartache I'm mentally not capable of dealing with..

Practical advice please not just people saying tough luck buster - believe me I know I am in a real pickle - don't need people who don't know me making comment... Thanks

All the comments you are going to get are actually frorm people who don't know you .... Are you suggesting that you only want to accept certain responses? If what you want is the moon on a stick, it is better to be straight about it.

beecher2 wrote: »

Sell home for £230,000. Pay off mortgage and debts, leaving £67,000. Use as a deposit for next place. You haven't given enough information to know if this is doable or not - if it isn't, then do as above but rent.

I agree with this. Is a mortgage of £165000 doable for you?

Bullfighter

beecher2 wrote: »

Sell home for £230,000. Pay off mortgage and debts, leaving £67,000. Use as a deposit for next place. You haven't given enough information to know if this is doable or not - if it isn't, then do as above but rent.

Going from being £50k in debt to being debt free and having £67k in cold hard cash sounds like a plan.