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Should we Sell Up to Start a Fresh?

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  • AlexLK
    AlexLK Posts: 6,125 Forumite
    Debt-free and Proud!
    I still do not understand why the OP cannot sell the flat and use the equity to buy another property? I understand the other debts need to be taken into consideration but if the OP is up to date on payments, they are surely a separate issue?
    2018 totals:
    Savings £11,200
    Mortgage Overpayments £5,500
  • Mara_uk7
    Mara_uk7 Posts: 1,219 Forumite
    Seventh Anniversary Debt-free and Proud!
    Perhaps because he has other debts and his credit rating is not so good. That he cant get another mortgage ?
    Its just a bad day, Not a bad life .. :cool:
  • AlexLK
    AlexLK Posts: 6,125 Forumite
    Debt-free and Proud!
    If that was the case he should have told us that in the first place, surely? As then we are talking about a different situation.
    2018 totals:
    Savings £11,200
    Mortgage Overpayments £5,500
  • kissjenn
    kissjenn Posts: 2,358 Forumite
    Mortgage-free Glee!
    Other thing to consider is costs associated with buying and selling plus OP and his wife are about 50. They would be lucky to get a 10 year mortgage.

    Modest flat at £110,000 with a 10% deposit would cost about £1000 per month. Plus insurance, plus repairs, plus life cover, plus fees etc.

    Given his family make up he needs a 3 or 4 bed place...renting may be the best long term option as he'll have more disposable income with debt gone.

    Only my opinion, and you're correct, you need lots more info to make an informed choice.
    :A Let us be grateful to people who make us happy: they are the charming gardeners who make our souls blossom. Marcel Proust :A
  • Hi folks,

    We cannot afford another mortgage after we pay off our debts which are around the £22k mark. The equity will clear our debts and leave us enough for the deposit and 1/2 months rental on a private rental in a decent area.

    The areas we want to stay in are way out of our league as far as mortgages are concerned but affordable at the moment via rental.

    Our priority is our youngest kid (7 years old) . We want to give him a chance in a nice area while we can. We have enough income to stay in a decent area providing stay clear of debt which has ruined our lives in the past. We are a lot wiser nowadays and at the moment our credit rating is quite good.
  • AlexLK
    AlexLK Posts: 6,125 Forumite
    Debt-free and Proud!
    Bob - I think you need to look into the implications of renting long term, what will you do upon retirement?
    2018 totals:
    Savings £11,200
    Mortgage Overpayments £5,500
  • Well AlexLK,

    I must admit that has been our main worry for a while now and why we have not sold up already.

    My wife has a good pension policy in place working for the NHS as a nurse, me on the other hand not so but by selling our flat and paying our debts off in full will free up some income which can be invested into some additional pension funds for our future.

    No it won't replace the flat value but to be honest we will be far happier knowing that we are giving our youngest a better chance in life than securing our own financial future.

    Money is NOT everything... We know that now as we have lost many family members now and need to care for our youngest whilst we still can. We are paying the penalty for having kids at a later age.
  • AlexLK
    AlexLK Posts: 6,125 Forumite
    Debt-free and Proud!
    Bob,

    If you feel you'll be better off and have (properly) weighed up the options go for it. :)

    As for having kids at a later age, my parents were 39 (mother) and 45 (father) when they had me (their only child). Today both are still going strong at 71 and 77.
    2018 totals:
    Savings £11,200
    Mortgage Overpayments £5,500
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