Would you lend money to a close family member?

Kynthia

Your plan to do work, sell and live somewhere cheaper seems a bit vague. I think you need to do some more research first.

Firstly why didn't your property sell before? Was it really the mould that put buyers off or is it the price or something else? Have you looked at the Land Registry site, or Rightmove, to see what similar houses actually sold for in the last year or two? Get a couple of estate agents round for a valuation and push them hard to give you realistic figures of what you could actually sell for and whether buyers would be put off.

Then you need to see are you spending more than you will make back on the property? What really needs doing and what won't actually increase the price a buyer will pay, get some friends and agents to give honest advice about your property. Have you cleaned, de cluttered, make it inoffensive in style (neutral-ish) and generally presented the property as best you can? These might have more of an effect than £10k of works and furniture when you take into account the return on investment.

Thirdly what us the plan once you sell? It sounds like you won't have any funds left after paying back the mortgage and the loan so where will you live? If you want to rent can you afford the rent and all the upfront fees? Will you pass the credit check? Will it really be cheaper than your mortgage? Or are you hoping for social housing, and if so have you taken advice from the local authority or CAB regarding whether you qualify and whether selling your home would exempt you?

I wish you luck and I hope you've gotten some proper debt advice from the CAB or one of the free debt charities.