Need to move, but no equity or deposit

Jvic28

The lender spent NO time explaining that to me. All I knew about it was that in my paperwork it says something like: "Portable:Yes" and that's about all I remember.

Thanks for your help.

paulmapp8306

From a complete outsider.

the market has changed in the last 2 years. Your Mortgage is 1005 and they just dont exist any more. a lender will not let you port that to a new property.

You have debt issues and a DMP (same as me) and are not a first time buyer. The chances of getting another mortgage at all is slim, and if ti IS possible your going to need at least 15% deposit (nnot good but in the current climate its the truth).

Honestly, you either have to live in the property your currently in with no hope of paying the initial loan back - basicaly look at it as renting for the period of the mortgage, OR you have to move for personal reasons (closer to family, better financial position etc) but will have to rent.

if you rent, you'll almost certainly get housing benefit (though I havent seen an SOA - you have no savings and Im guessing your not earning much either if your in difficulties). You will never get help with a mortgage, but you will with rent. Its highly likely that you could move to a larger property, closer to home, which is a private rent - and therefore also removing building insurance and repair/maintenance costs - while at the same time being cheaper due to housing benefit you can now claim.

Which f those two options you take is up to you of course - but being in a similar boat - they are pretty much your only two options.


Of course the other issue you have is how much your property is worth. Generally, houses are 10% to 15% cheaper now than two years ago - and despite what some would have you believe (particularly estate agents), the market is at best stable and at worse going to see values falling again soon. I highly doubt you will be able to sell for the same price you bought your current house for - and I dont see that changing for at least 5 years.

Jvic28

paulmapp8306 wrote: »

From a complete outsider.

the market has changed in the last 2 years. Your Mortgage is 1005 and they just dont exist any more. a lender will not let you port that to a new property.

Thanks You, I think we have already established that.

paulmapp8306 wrote: »

if you rent, you'll almost certainly get housing benefit.

Would I really, I'm not able to claim any benefits at the moment other than tax credits and child benefit so find this hard to believe.

paulmapp8306 wrote: »

Of course the other issue you have is how much your property is worth. Generally, houses are 10% to 15% cheaper now than two years ago - and despite what some would have you believe (particularly estate agents), the market is at best stable and at worse going to see values falling again soon. I highly doubt you will be able to sell for the same price you bought your current house for - and I dont see that changing for at least 5 years.

I haven't been given any values by estate agents so they haven' led me to believe anything. The value I had been given was by a chartered surveyor. I have checked and the last property sold in my block, sold for a £4k loss so not that far off but yes I do need to wait for the market to improve. However, I just cannot wait 5 years. If that becomes the reality, I may well have to go bankrupt.

paulmapp8306

Jvic28 wrote: »

Would I really, I'm not able to claim any benefits at the moment other than tax credits and child benefit so find this hard to believe.

.

as I said, i dont know what you earn or what savings you have - HOWEVER, my sister works for the housing benefit office in Nottingham.

On my income I can only claim CB and TC (basic), BUT If I was in private rent i would get roughly half my rent paid. I found it hard to believe too - but its worth checking what you WOULD get IF you were in the position of having to rent.

Unless you are prepared to give your income and savings amounts, I cant make further comment on what you would or wouldnt get.

callmechar

Trollfever wrote: »

as it's a shared equity property = double stuffed.

Have to agree

Jvic28

Looking at the direct gov website you have to earn less than approx 15k for housing benefit. I earn more than that however have no savings.

Not sure why there's quite the issue with shared equity though really. I don't think it makes things anymore difficult really.

callmechar

Jvic28 wrote: »

Looking at the direct gov website you have to earn less than approx 15k for housing benefit. I earn more than that however have no savings.

Not sure why there's quite the issue with shared equity though really. I don't think it makes things anymore difficult really.

No you do not have to earn less than £15k for HB, its all done on a strict calculation and your applicable amount dependent on the rent, LHA levels in your area etc

Jvic28

Ah ok. I'll bear that in mind, but won't bank on it. Thanks.

Tyler_Du

Surely if you're only paying interest only, you'd be better off renting and then having a little extra cash you could save or use to pay some debts.

katejo

Jvic28 wrote: »

When did I say that?

You have not said this directly but you don't seem very willing to accept the realistic advice given to you by other participants.
You want to move closer to family and that is understandable. Where in the country does your family live and where are you living now? If it would involve a move to a cheaper area, you could consider trying to sell your flat and renting nearer to your family. Do you have any capital in the flat at all? You could perhaps use that (if any) to pay off part of your debt.