pay off

HollyB

Hi all, advice required please.... i am currently considering my financial options. If i sell my house i would be able to pay off all of my debts : loans/ DMP with payplan and clear my 2 x CCjs. end result no debt.

My dilemma, im 45 divourced with 1 child at college, every month is a financial mental struggle, i work in a seriously high pressured job which i need to downsize before its the death of me so here are the options

1) Sell house, pay off all debt - rent for a couple of years then trys and invest my 60k back into the mortgage market - concerns are that im really nervous about sellling and removing what feels like my only assett and at my age, i still have a mortgage of 170k to pay off.
2) preferred option: Sell house, pay off all bills DMP CCJs so all would be clear, downsize to a much smaller house/and smaller mortgage put large deposit down and just have 1 outgoing (smaller mortgage) but i just cant seem to get anywhere with it mortgage wise, even though by selling i would be able to clear all.

3) any ideas

theoretica

Would it help to take in a lodger in your child's room - or more if you have more than one extra bedroom?

HollyB

Hi thanks, ive already done that, had too as my x got made redundant couple of years back, and stopped child support, so yep im doing that and that works well. but its so frustrating all i need to do logicially is downsize, release my cash and hey presto, no bills, debts ccjs etc. Just a smaller house and mortgage :eek:

gardenlady_2

The problem with your plan is that you will not be able to get a mortgage with a different provider than your current one as your DMP will show up on your credit rating. Although you can swap mortgage products with your current provider, as soon as you move it will be a whole new mortgage which means you will be credit checked- unless you have a portable mortgage of course. It is one of the downsides of a DMP that doesn't often get mentioned. I think you should go to a mortgage broker and explain everything and see what they say. Good luck.x

theoretica

Have you asked your mortgage provider about 'porting' - so the same, rather than a new mortgage - or is that another thing you have tried and are getting nowhere?

HollyB

Hi all thanks for your comments, i did go cap in hand and full of solutions to my mortgage provider originally and even by swopping my current fixed mortgage would save me £300 a month, but they would do it unless i paid up front the fixed term payment which to get out of onto a variable rate was £8k which of course i didnt have, in the old days you could do this and add to mortgage but not so anymore with Halifax, they wanted it up front to buy out of my fixed rate, which silly me 1st got into for security reasons didnt quite work out that way?? So have lodger mon-fri which helps, What does the portable mortgage meani havent heard of that before? if i could look into something that would be great I do look at all options possible, just want rid of the debt and a smaller home with less stress, im a single parent, daughter at college, i earn a good wage but it is all sunk back into DMP and mortgage, No other income and not in any Social support bracket as i work HARD ... Still have 3 years left on fixed rate, and i have done my sums even by just taking on a 3.9 % mortgage i would be quids in and be able to pay off DMP quicker??

Sorry for rant, im a pretty private person but need some advice without bringing the world and its mother in.:A

theoretica

See:
http://www.halifax.co.uk/mortgages/Existingmortenquiries.asp#Portable_Mortgage_Products
Which isn't all that helpful, but does give you a number and what they call it! As I understand it, if they let you do this you would still need to pay a portion of the buy out fee (eg if paying off 1/3 of the mortgage pay 1/3 of the fee).

jonathansmith

Well, before mortgaging, you need to look for a suitable house for you, so that you do not move out without any space to live. Look for a house which is in a secured society.

XXSCOTSLASSXX

HollyB wrote: »

1) Sell house, pay off all debt - rent for a couple of years then trys and invest my 60k back into the mortgage market - concerns are that im really nervous about sellling and removing what feels like my only assett and at my age, i still have a mortgage of 170k to pay off.
2) preferred option: Sell house, pay off all bills DMP CCJs so all would be clear, downsize to a much smaller house/and smaller mortgage put large deposit down and just have 1 outgoing (smaller mortgage) but i just cant seem to get anywhere with it mortgage wise, even though by selling i would be able to clear all.

3) any ideas

apologies, I may be being really thick here... but where is the 60k coming from??

HollyB

Ok here goes, Mortgage remaining 170k, DMP 20k loan 40k.. House valued recently @ 300k leaves 70K ... I would be looking for a another property around the 200-220k or less
so i could pay off 60k (10k moving?? costs ) leaving me 160k mortgage and thats it (no Loan no DMP no CCJ) then a life!!!

HollyB

theoretica wrote: »

See:
http://www.halifax.co.uk/mortgages/Existingmortenquiries.asp#Portable_Mortgage_Products
Which isn't all that helpful, but does give you a number and what they call it! As I understand it, if they let you do this you would still need to pay a portion of the buy out fee (eg if paying off 1/3 of the mortgage pay 1/3 of the fee).

thankyou so much for this info, i wasnt awareof this product so it is definately worth a try Thanks so much