Range of advice/Opinons required please

alamaya

Hello,

Need impartial advice if you dont mind.
Currently own house in area "a" shall we say. 103,500 mortgage on a 113,000 house. Dont be fooled though have no official equity as have a £14k unsecured loan with mortgage provider to cover the difference and debt we had at the time. Mortgage is 5 years old and passed the early redemption stage.

Possibly wanting to move back to home town say area "b". More work opportunities for me there, family, etc.

Heres the issues, we have £25k of debt. So there is no chance of a remortgage without deposit.

So opinions please

Do we stay in the mortgaged house even though we dont want to be in the area, know nobody here and may not be able to return to work as they are making my flexible working request difficult.

Or move to hometown and not be able to buy another house for a long while. Might even struggle to gather money for a deposit for renting and therefore would have to move in with parents (who have already offered) But ouch moving back in with parents after 7 years away i think may drive me potty but god would we get down debt.

Any ideas or further info needed.

Sorry to take up your time but i have no friends and of course my family is biased so i wanted a purely financial opinion.

go_cat

Is the £25k of debt is in addition to the £14k secured on the house??

Either way you need to actively clear your debts before taking on any more financial responsibility.

Could you commute to work for a short while

If you need support on reducing outgoings pop over to the debt free wannabe forum and post a SOA and you wil get some fab advice on how to reduce your outgoings and thus quicker repaying your debt good luck !

tbourner

NRAM?
//edit just seen your sig.

I'm in the same boat, but luckily don't want/need to move at the moment. I'd suggest you move into your parents though (obviously depending on several factors, like are you with a partner? Will it cause issues? Will you likely fall out?), work out how long you'll need to stay there for to pay everything off and save up some money.

Also, decide if you can rent out your house, or if you'll have to sell it and pay off what you can of the mortgage.

I wouldn't move in with my parents, but then there isn't room, and they wouldn't offer, and my wife would flat out refuse to live with either of them, and we'd have to get rid of the dogs (cos they rent), and many other factors - only you know if it's viable to live with your folks or not.

alamaya

Hi,

Thanks for replies and hopefully i can answer some questions

£25k is an addition to the £14k but it is all unsecured. (Northern Rock Mortgage so i can sell and pay off mortgage and keep the £14 just as a unsecured loan as it currently is.

Yes i could commute bit awkward as bus, train, bus but i guess in desperate times its possible as thats what hubby would have to do for his job. (Neither of us drive and quite obviously could not afford to learn nor get a car)

Been a member on here for quite a few years and trust me when i say i have reduced everything as much as i can with previous advice. In fact we never go out, never buy anything other than value brands.

Im married and parents have said we can all come. My husband is not keen on the idea of moving, he likes being here albeit he has friends here and likes not being near family. Having my daughter has made me want to move near family even more. He said he would move it makes me happy but fearful it would forever be brought up in arguments in the future. I guess at least one of us is unhappy whatever we decide.

However something i did forget to mention is we have a dog and this is something that worries me greatly with the idea of renting.

ps thanks for the replies and listening to my ramblings.

BitterAndTwisted

I think you should sell up and pay down ten thousand of those unsecured loans. Put a time-limit on paying down the rest while you're living with family. Once you're debt-free then save for a rental or a new deposit on a purchase. I couldn't sleep at night worrying about servicing that amount of debt. After making your mortgage payments and the debt-repayments there can't be much left every month.

tbourner

alamaya wrote: »

£25k is an addition to the £14k but it is all unsecured. (Northern Rock Mortgage so i can sell and pay off mortgage and keep the £14 just as a unsecured loan as it currently is.

Have you checked this? When I spoke to an advisor for mine they said if I paid off the mortgage side and left the unsecured loan, it would become a normal loan through Northern Rock and would go from their variable mortgage rate (currently 4.79%?) up to their default loan rate which at the time was 12.9%!!!! This is still over 30 years, which I'm definitely NOT willing to do.

alamaya

tbourner wrote: »

Have you checked this? When I spoke to an advisor for mine they said if I paid off the mortgage side and left the unsecured loan, it would become a normal loan through Northern Rock and would go from their variable mortgage rate (currently 4.79%?) up to their default loan rate which at the time was 12.9%!!!! This is still over 30 years, which I'm definitely NOT willing to do.

Hi

Not checked it but am aware that would probably happen. As a previous poster stated though hopefully would have a little money from the house sale to knock it down.