Remortgage to move but have big debt

inbigdebt

Cheers for all the advice... no the OH doesn't know, she's suffering from severe depression and alcohol issues and is in a bad way - one of reasons to move... kids to be closer to friends etc.... I was hoping someone has been in a similar situation and found a way out of it aside from those mentioned which without wishing to sound clever ( and I am not believe me) are options I had already considered and realised were options... although I like idea of renting this house to fund renting another as opposed to selling this and renting....

I make no illusions that I know I am in a mess and there is no easy way..... at all.... I doubt I could get any mortgage, so renting is really my only option.....

Thrugelmir

Then do something to improve the life of your wife and kids. Make positive decisions.

You say renting will cost an additional £400 a month. How much will you save by not servicing £50k of debt?

You'll still have a significant amount of savings which can be used against a future property deposit. So you are in a far better position than most people with debt issues.

GAH

Sell and Rent then. You can then start again without the burden of debt on your shoulders with house prices going down you could potentially buy somewhere cheaper in a couple of years.

Renting your own home is an option, but not a decision to be taken lightly, being a landlord can be a full time job in itself.

BadgerFace_2

I'd have thought renting would also be the best idea.

You said in the first post that you had the debts on 'repayment plans'; if these are reduced payments agreed by the lenders, I'm sorry to say your credit file will reflect that and probably render you unable to get a mortgage at the moment.

You should try to address why you're in debt too, as the last thing you want is to rent with £60k in the bank and end up having spent all that in a couple of years and be left with nothing.

ILW

Sell up, pay off and either buy a cheaper place or rent.
Why do you have a problem with that option?

maninthestreet

Is someone with alcohol abuse and depression going to be able to stabd up to the stresses and strains that a house move entails???

getmore4less

inbigdebt wrote: »

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

Renting might mean £400pm but it also turns a £50k debt into £67k savings.

So you get rid of the debt payments(what are they) and have an interest income @2.5% of £140pm.

One happy family no debt.

Sell it on the idea that you need to live in the new area before commiting to buying just in case it does not work.
(especialy if you end up splitting renting is a much easier starting point)

You have to sell(based on what you have said) so get that bit started
then decide what to do next you will have time to think hard about that.

Thrugelmir

maninthestreet wrote: »

Is someone with alcohol abuse and depression going to be able to stabd up to the stresses and strains that a house move entails???

And the alternative while sinking under the weight of debt?