Remortgage Rent or Shared Ownership - help please

pottyhouse

Hi all, any comments/feedback welcome.

We have been living in our current home for 4 years and have decided to sell up and move. We have had a pretty bad time over the last few years and even before that when it took us 18 months to move.

Our financial circumstances have changed since taking out our current mortgage; my OH was made redundant and we both now work part-time hours the equivalent of 40 hours per week. We have a disabled son for whom we have just started to receive DLA for and we also qualify for child tax credits.

My query is .....

If we were to sell now we would make a loss on our home (we have spent £20,000 on it at least over the last 4 years). We are well aware we will probably only get what we bought it for or even less. Luckily we do have the equity that was our deposit and this should be about £80-90k. With the recent MMR rules we are well aware we will probably not qualify for the current mortgage we have, so we could not probably not even rebuy the house we have a mortgage on - if you catch my drift!? We now have debts incurred over redudancy and improvements to this house which we know will be taken off what is offered. So to move to a similar sized house, sidewoods move I guestimate we would be offered £20-30k less than our current mortgage.

So these are the choices I think we currently have .... ??
1. Sell making a loss or break even but still with debts and buy another home £20-30k less than our ideal budget using the equity as deposit.
2. Sell as above but rent - would our equity be able to be put in "trust" and I think we would have to declare this as savings to HMRC for Child Trust Fund purposes - we would prefer not to live on our equity by choice - it is our Pension pot.
3. Sell as above but is shared ownership an option - put our equity down as deposit for 25% / 50% /75% and we then rent the other share with no mortgage outstanding.
4. Another option ???

I am awaiting contact from an FA but thought I would try on here meanwhile for anyone in similar circumstances.

amnblog

Far too complex for any sensible answers here Pottyhouse.

If you have kept your credit file clean you will have greatly improved your options. Seeing an adviser is the correct route, and no snap decisions please.

Remember you can keep some of your equity in property whilst living elsewhere.

pottyhouse

Thank you amnblog

Yes I thought a direct appointment with an FA would be the best route, yes very complicated !!