Help overcrowding in mortgaged property stuck in market crash

Jennylanchester

There's a possibility that one of two family members may want to rent from us but not for another 9-12 months. The reason we were so keen to go ASAP is to take advantage of the first buy 95% mortgage 5%'deposit scheme which I'm aware is only running until dec/jan time. After that we are worried it will be too difficult to get a mortgage in terms of the restrictions and deposit needed...

GMS

Jennylanchester wrote: »

We don't want make do solutions we want how to get out suggestions.

You owe more than it is worth without taking into account the fees involved with selling.

People are trying to give you some help, possibly things you may not have considered so disregarding the suggestions of people trying to help is not great.

The bankruptcy option you mentioned earlier is something to be considered in great depth. It will impact on you for a long long time.

Speak to the mortgage company and see if they would allow a sale at less than the mortgage with a plan in place to repay the balance. See if they will allow it to be let.

There is no magic wand unfortunately.

opinions4u

Jennylanchester wrote: »

We don't want make do solutions we want how to get out suggestions.

Stuff you then.

Sorry for trying.

Jennylanchester

I didn't mean to disregard but trust me we've thought of everything and staying will only have a maximum shelf life of 18 months tops ...
I guess we will just have to wait for our family members to hopefully come through and rent from us and hope there is some government scheme or something to help us on to the property ladder then. Ill get my mortgage papers out tomorrow and ring citizens advice I think.
Thanks.

Jennylanchester

Opinions4u very grown up. If you'd read the thread in the first instance I was clearly asking for help on how we would go about leaving said property not putting some curtains up or buying a bunk bed and living out our days here. And as mentioned even if we saved for years because of the mortgage type we have we would maybe be able to sell for its lesser value and afford to pay the difference but we would then be without any savings and without a house. Not practical. 40 years ago my mum was one of nine kids living with two adults in a three bed house. Times are different now and that's not how I want my children to be brought up.
Ill ring citizens advice maybe they will have some more useful information then 'stuff you....'

CKhalvashi

Is there any chance of you being able to work, save as much of your income as possible and get the excess balance cleared, then sell? You should be able to do this within 18 months.

We often place my children with my parents/their friends parents/in the office after school for a few hours. My children are obviously older than yours, but you're 25ish, you've worked in a good job, surely you should be able to get a similar job.

CK

opinions4u

Jennylanchester wrote: »

Opinions4u very grown up. If you'd read the thread in the first instance I was clearly asking for help on how we would go about leaving said property not putting some curtains up or buying a bunk bed and living out our days here.

The cost of moving is expensive. Letting your property will have a detrimental impact on your mortgage rate. Accessing a 95% mortgage when one of you already has debt is going to be difficult at best, more likely impossible.

It wasn't clear if you had fully considered your options around staying put. Skip back a generation and I too enjoyed the pleasures of negative equity, two young children in a tiny terraced house. We were lucky enough to have two bedrooms, both small. We made do with mortgage rates hitting 15%. But we saved our way out of negative equity and scraped the deposit for a mortgage on a new place.

It wasn't fun. But the kids developed normally and the adults coped. The next house upped in value as the market improved and negative equity became very much a thing of the past.

It doesn't take a lot to split two rooms with plasterboard and once split space saving options can be found with the right furniture. I did spend a little time to find a link to something that would help. A little effort for a complete stranger. Your response wasn't exactly appreciative, it was downright rude.

And as mentioned even if we saved for years because of the mortgage type we have we would maybe be able to sell for its lesser value and afford to pay the difference but we would then be without any savings and without a house.

Save more then. You have, by the sounds of it, a dirt cheap mortgage. Make the most of that while the rate is low.

Not practical. 40 years ago my mum was one of nine kids living with two adults in a three bed house. Times are different now and that's not how I want my children to be brought up.

No. But sometimes what we want and what we can afford are two different things.

Sometimes what we want is only obtainable by hard work, a second job, cutting back on life's little luxuries.

Ill ring citizens advice maybe they will have some more useful information then 'stuff you....'

One thing they will tell you is that not paying the mortgage will stuff you more than a post from a stranger on the Internet.

katsu

Jenny, to go bankrupt you have to be unable to afford to pay the mortgage, not just unwilling. Read the forum for bankrupts to understand about the long term consequences and implications.

I'm sorry that opinions for you reacted sharply but the advice is sensible. House prices could rise in N years whereas if you sell and don't go bankrupt you have to clear the shortfall somehow. It may well be possible to divide your bedroom into 2, or it may not, but whilst your babies are so wee, it is less of an issue, no?

Good luck with whatever you decide to do.

ViolaLass

Could we get some facts please?

- do you have the 5% deposit saved? How much is it?
- what is your current interest rate?
- how much do you owe?
- what would a reasonable rent be?
- how much are you saving per month?

Then we might be able to be more specific.

Enterprise_1701C

You say it is a flat - does it have a lounge? Could you use this as a bedroom in the meantime?