should I sell or stay put?

gemmacots

SuzieSue wrote: »

Well, the DMP changes everything.

I know it is far from ideal with children, but is there anyway you can take in a lodger? That is what a lot of people (including my parents) in the 60s and 70s. We had lodgers until I was 10 (but you have to be very careful - my parents stopped taking in lodgers after the police came looking for one of them as he was wanted for !!!!!philia!). But it was the only way my parents could make ends meet when we were young.

I know, if it wasn't for the DMP I would probably just sell and downsize no problem, but that is probably what is holding us back, with the uncertainty of what we can do once we sell. It will be nice to be sat on a load of cash, but I want long term security for us and our kids and I fear that unless I buy something for cash, it will take years for someone to offer us another mortgage.

Yorkie1

All you can see is the money in the bank. I don't know anything about DMPs but it sounds from your postings that you may have to repay some debtors from the money. Also bear in mind that interest rates for cash are currently less than inflation, so the money would be worth less, relatively speaking, when you came to use it.

gemmacots

Yorkie1 wrote: »

All you can see is the money in the bank. I don't know anything about DMPs but it sounds from your postings that you may have to repay some debtors from the money. Also bear in mind that interest rates for cash are currently less than inflation, so the money would be worth less, relatively speaking, when you came to use it.

Yes I owe creditors in the region of £30.000 so in order to get another mortgage I would have to pay this off first. I could do this but then would have less money to re-invest. I am currently paying them on Debt management plan, which is an agreed monthly amount until the debt is cleared, so this makes my credit score low hence making it difficult to get another mortgage even though I would have well over £100.000 deposit. So you think I should persevere?

phoebe1989seb

Hi OP, back in 2007 we had a house on the south coast valued at around £700k with a mortgage of approx £200k for which our repayments were similar to yours. Our son was just about to start at uni and we were struggling to keep our heads above water in a house that was far too big for the two of us (3000 sq ft six beds). We took the decision to sell up, repay our debts.....mortgage, credit cards and a couple of small loans and become mortgage free. It took some time to sell and we had to take quite a substantial hit on the original valuations and the place we chose to buy (Essex) was not right for us, but the decision to become mortgage free was definitely the right one.

Obviously our situation was slightly different as we were able to get a new property that suited our requirements - apart from getting the location wrong - without having to resort to new borrowing, but the relief at no longer having to struggle each month made the world of difference to our lives.......my DH (who had previously suffered a breakdown) was even able to take some time out from the workplace and for a while we relied solely on eBay income!

More recently we sold the Essex house and relocated closer to our roots, this time buying a project - still mortgage free - and hopefully will be able to add value to the house without having to borrow in order to do the work......although making money isn't our objective as we intend to stay here forever

Quality of life is obviously very important and I wouldn't want to put a child of mine through the rental system if not totally necessary.

I would definitely advise getting shot of your debts - mortgage and other borrowing if possible - although if you could take in lodgers (something we should have considered, but didn't) this may negate the need to uproot your kids at a young age, although after what SuzieSue said you would have to be wary of who you take in.......

Good luck with whatever you decide

gemmacots

phoebe1989seb wrote: »

Hi OP, back in 2007 we had a house on the south coast valued at around £700k with a mortgage of approx £200k for which our repayments were similar to yours. Our son was just about to start at uni and we were struggling to keep our heads above water in a house that was far too big for the two of us (3000 sq ft six beds). We took the decision to sell up, repay our debts.....mortgage, credit cards and a couple of small loans and become mortgage free. It took some time to sell and we had to take quite a substantial hit on the original valuations and the place we chose to buy (Essex) was not right for us, but the decision to become mortgage free was definitely the right one.

Obviously our situation was slightly different as we were able to get a new property that suited our requirements - apart from getting the location wrong - without having to resort to new borrowing, but the relief at no longer having to struggle each month made the world of difference to our lives.......my DH (who had previously suffered a breakdown) was even able to take some time out from the workplace and for a while we relied solely on eBay income!

More recently we sold the Essex house and relocated closer to our roots, this time buying a project - still mortgage free - and hopefully will be able to add value to the house without having to borrow in order to do the work......although making money isn't our objective as we intend to stay here forever

Quality of life is obviously very important and I wouldn't want to put a child of mine through the rental system if not totally necessary.

I would definitely advise getting shot of your debts - mortgage and other borrowing if possible - although if you could take in lodgers (something we should have considered, but didn't) this may negate the need to uproot your kids at a young age, although after what SuzieSue said you would have to be wary of who you take in.......

Good luck with whatever you decide

Thanks, if I could sell tomorrow and buy something outright I would do it in a shot, but with young children we need the space and with the cash we have we could barely afford a 2 bedroom in the south east and we would need at least a 3 bed,
But the thought of being mortgage free or even a small mortgage sounds so tempting right now. I don't know if I could have a stranger living with us, I think my husband would hate it to be honest.
My main worry is that the interest rates shoot up in the near future and we will be paying even more!

ohblimey

I can't see the point of renting, you would need to pay so much in rent it's probably cheaper paying your mortgage each month, for the short term anyway.

How about a lifestyle change and move somewhere else where you get more for your money. We moved from a suburban busy town to a coastal village, it's fab, no mortgage, friendly people, gobsmaking countryside and coastline. £150k would easy buy you a 3 bed detached around these parts.