DFW's that have sold their home - advice please

DavidHM

Depends what you are currently paying on your mortgage. You may be able to sell and rent back, reducing your outgoings and giving yourself tax free cash.

That to me sounds like the worst of all worlds: selling the house probably below market value, paying rent going forward and still having to come up with the mortgage redemption penalty. All sales of principal private residences are tax-free.

I do think using the government's rent a room scheme is a good idea though. Taking in a lodger can make you up to £4250 a year tax free...

That I agree with, provided of course that the property is suitable.

Vickicb

Don't do it Clara, I know 15K seems like alot of debt but it is going down and I don't think it's enough to lose your house over. For a start, the redemption penalty you'd pay is nearly 25% of your total debt! At least leave it until you're out of the redemption period to consider this drastic action - that's nearly a year away and you're debt will be much smaller by then.

I agree that a lodger would be a good idea - 2 years and you'll be free of this debt and still have your house.

beanielou

Dont do it unless your back is really against the wall.
You are more than half way there already

clarab_3

Thanks all - it's appreciated - unfortunately a lodger is out, there's only one room!

kissingthepink

DON'T give up your home. Ride it out.......You will probably be worse off if you opt to sell and buy again. Interest rates may be rising, but so are house prices. Th scenario is even wosre when if you factor in estate agent fees, legal fees and mortage redemption fees when you sell, and then again legal fees, morgage application fees and surveyor costs when you re-purchase. Almost everyone else gains to make make money except you!

vics_1982

Don't do it, like everyone says you have done so well so far, you can sort the rest as you have done 52% already and still have the security of your home.

Take care
Vics
xx