Shared ownership - next steps help

AliceBanned

Hello


I bought my SO one bed flat in Hertfordshire just over a year ago. It was then valued at £155k (full amount) and is now £175-185k based on recent sales and Mouseprice/Zoopla valuations. This means my share of £62k may be worth around £72k at the moment. I owe £52k on the Halifax mortgage which is fixed at 5.69% until July 2015.


I like the flat and the area but due to the outgoings and my debt I feel I am making slow progress financially, and struggling to make ends meet each month. However I have not defaulted on anything for many years, and unless anything untoward happened I would not, as I have had a CCJ about 10 years ago and I know it has a devastating impact. I have withdrawn cash from credit cards occasionally (about 5x which I know is too much!) over the past year, and had two short term loans from a credit union (not exactly payday loans, very low interest but they may show up on credit file).


So basically I am managing money as well as I can in the circumstances, but I haven't in the past, and that is why I am still struggling now. I am not sure whether to sell my flat and buy a much cheaper place. I am viewing one today with an asking price of £145k, just to start to get a feel for other places. I can't see myself owning my current place 100% unless I can increase my salary (which may be possible if I go for a higher salary by applying for a new job).My salary is £30340 at the moment. I commute into London four days a week, costing £160pm (work from home one day). I have no dependents and am single.


Ideally I don't want to leave the flat which is great and probably a good investment as there is much demand for the development it is on. One estate agent said it could go for £200k at the moment. Btw when I sell, if the housing assoc cannot find a buyer after two months I can put it on the open market - at this point if a buyer wanted 100% straight away they could do this - meaning investors are likely to be interested as it is 0.2 miles from mainline station to Euston. It is desirable generally so I am not worried about finding buyers.


My problem is not being able to staircase (at all at the last time I spoke to Halifax - their mortgage adviser recommended I move further out and then they would lend me £160k on a house - 95% LTV - that was about 3 months ago). They would not let me staircase but said speak to them again nearer the end of my fixed rate. I know SO is considered higher risk. So I am looking at much cheaper and less desirable places - would I be more likely to be able to borrow for one around £140k, with a £20k deposit? It is hard to know which way to move. I spoke to a broker who specialises in SO and he said to go back to him around April next year. I think my debts are getting in the way but with the interest etc I am paying them down so slowly. I am slowly managing to pay off a credit union loan so hopefully can shift a lot of the credit card debt to a cheaper loan in around six months' time. It is slow progress but I am working on this - just think 'downsizing' but 100% ownership might make for better mortgage availability? Thanks for any advice - I don't need to act for another year or so, or at all but I'm trying to plan ahead as flats are continuing to go up in price in the area I live, and I can't seen to cut costs in any other way so I barely have holidays or clothes at present, don't spend much going out etc (though hope this will change in the future, but is ok for a couple of years I think!).