We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Bad credit but equity in house
dwill1503
Posts: 142 Forumite
We have a house that is valued at an estimated £170k.
Our mortgage is just under £98k.
We have approx £25k debt (£8k of this to family) and do not have a good credit score - loans to pay credit cards etc etc and have been on a payment plan with debit line which we are about to end and pay direct instead.
Our income is one full time worker on £32k and the other part time on £8k. (we are both under 38 years old).
We are trying to work out whether we should:
a) sell the house, pay off the debt and just rent for 6 years and be very good or
b)try to find a new (re)mortgage and stay in current house or
c)try to find a new mortgage for a house that is valued at £210k using the equity after debt as deposit (if this is an option)
d) Is there an option d?
Thank you in advance,
Our mortgage is just under £98k.
We have approx £25k debt (£8k of this to family) and do not have a good credit score - loans to pay credit cards etc etc and have been on a payment plan with debit line which we are about to end and pay direct instead.
Our income is one full time worker on £32k and the other part time on £8k. (we are both under 38 years old).
We are trying to work out whether we should:
a) sell the house, pay off the debt and just rent for 6 years and be very good or
b)try to find a new (re)mortgage and stay in current house or
c)try to find a new mortgage for a house that is valued at £210k using the equity after debt as deposit (if this is an option)
d) Is there an option d?
Thank you in advance,
0
Comments
-
d) Have you looked at the Debt Free Wannabe board. Lots of support and advice on there. Many people on there have had their light bulb moment and are tackling their issues head on in a positive manner.0
-
Which is your preferred option?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Our preferred option is to sell the house and just sit tight for a few years. I just don't know whether it would be the "advised" option.0
-
If you've no need to move. Sitting tight where you are maybe your best option. As interest rates look likely to remain low for a while longer.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.2K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards