Solution?

acheekymunky

Would this be a good idea?....

If we sell our house we could make about 25-30k on it. We could use that money to become debt free then we could rent for 12 months while we save & look for our dream house that we could afford because we're debt free??

I can't see the downside of this but I would definitely welcome a devils advocate

Thanks x

iolanthe07

If you're disciplined it ought to work, providing house prices don't rise too much. Of course, buying and selling in itself is expensive, what with fees and stamp duty. Difficulties could arise if you start spending beyond your income; most people on this site have problems because they are unwilling to live within their means.

jessie4109

Do any of these debts have any late payments or defaults?

acheekymunky

I would say about half of the debt is mine and they are all on a dmp and defaults. The defaults start to drop off this year with the last one being August 2014. I thought if I clear the debts (which I acquired 10 years ago & have definitely learnt my lesson!) I would have them cleared ready for when the only debt we would WANT to acquire is for the new (& hopefully in a joint name) mortgage.

Thank you x

jessie4109

Before you do anything would it help put do a simple spreadsheet so you can see (hypothetically) if you could manage to afford to sell up, rent and to save for the deposit at the same time. Start from today, plan roughly how long it may take to sell your current property and factor in solicitors fees, removal costs, tenancy fees, bond and 1 months rent to find for a property in your area etc. I've never sold a house before so i'm not sure how longs thing take from start to finish but just an idea for you to think about.

acheekymunky

Brilliant advice Jessie4109 thank you..as you also pointed some outgoings I hadn't thought of! We are getting building work done at the house at the moment so I don't have all the paperwork on our current costs but I can start to research rental costs and average cost of selling the house. The massive deciding factor is the current value of the property which we will get from an estate agent in a week or two once the work is complete. It's all very much a brainwave I had yesterday but I could be blinkered by the big lump sum to be debt free which is why I wanted your opinions & honesty. The house we are in itself was only ever meant to be our first starter home and we don't have much sentimental attachment to it...in fact we have been planning how to get out & get our dream house with a garden since day 1 but my defaults & the massive desire tobe debt free have put a halted that.

Thanks for your replies xx

jessie4109

while you are looking at rentals also have a look at actual sold prices of similar properties near you eg on rightmove etc as there may be a huge difference compared to what they were advertised for.