Selling up to Rent?

leunger

from the information you provide, I would make the following assumption:

1) you are on a repayment mortgage
2) your mortgage is well out of the fixed period if it was originally taken

I will echo with the suggestion above.

if im in your shoes, i would remortgage and go with an interest only mortgage and probably a fixed one. As this will free up cash for either improve the standard of living or toward speeding up the repayment of the other debts. fixed term just give the protection if the interest rate go up in next couple of year.

Pixie5740

Where on Earth is the OP going to get an interest only mortgage these days?

OP, going by your figures, you're almost at a 90% LTV and there are lots of lenders out there offering 90% LTV mortgages. Whether you would be able to get one with £26k of additional debts is another matter though and maybe worth discussing with a mortgage broker.

However, I think you're mind is pretty much made up and that you want to sell and start over with a clean slate. Property ownership isn't the be all and end all, and you can't put a price on peace of mind.

If I remember rightly from one of your other threads you're based in Northern Ireland (?) where perhaps the property market is not quite the same as it is in other parts of the UK.

Rambosmum

I haven't been in your position but a really good friend of mine has - bought a house in 2007 when prices were high, 100% mortgage, his wages were changeable each month and she was in a low paid job. It was ok until she fell pregnant then they racked up debt on credit cards to buy things for the baby and even pay their electricity and shopping bills.

She went back to work after 6 months because they couldn't afford for her to be off work, they were in negative equity for ages and couldn't remortgage and they wracked up even more debt. As soon as they came out of negative equity (due to house prices rising about 2 years ago) they remortgaged, they only had 2 mortgages to choose from other than their current one but it reduced their payments by a fair bit which they used to pay off debt and she also got a higher paid job. His shifts became more regular due to the pick up the economy as well so things also helped.

At one point they seriously considered selling up and moving in with her parents but when they did the maths, estate agent fees, solicitors, moving costs etc they'd have actually lost money and been in debt.

They've just bought a 3 bed, have a second child on the way, vastly reduced debts (might even been debt free, I don't go prying!) and are in a much better financial position than they were.

Renting is a definite possibility for you if you think things are too much but I would seriously look in to remortgaging unless there is something else which is stopping you.

Use free whole of market broker, such as London and country, they'll give you advice if nothing else - they were great with us, we didn't think we stood a chance of remortgaging- I was unemployed, OH was about to reduce his hours at work, but they found us a great deal.

Having done the maths you have just under 92% LTV, there are a few 95% mortgages out there, so you never know.

leunger

Pixie5740 wrote: »

Where on Earth is the OP going to get an interest only mortgage these days?

.......

There are such mortgage still out there. I just did a quick search on google and there they are (see link below). No doubt there are more out there when research/search for them properly.


https://www.google.co.uk/compare/mortgage/qs?gclid=CjwKEAiAyMCnBRDa0Pyex-qswB0SJADKNMKARD9QdQFtraP9DAAxB3qcDzvn7U52C_NSjWeB8sQfVRoCVHLw_wcB#!purpose=REMORTGAGE&totalMortgage=246000&propertyValue=270000&propertyLocation=ENGLAND&missedRepayments=false&repaymentsType=INTEREST_ONLY&term=30&applyRoute=true&jointApplication=false&annualIncome&employmentStatus&annualIncome2&employmentStatus2&rates%5B%5D=DISCOUNTED&rates%5B%5D=FIXED&rates%5B%5D=OFFSET&rates%5B%5D=TRACKER&rates%5B%5D=VARIABLE&initialPeriod%5B%5D=ONE&initialPeriod%5B%5D=TWO&initialPeriod%5B%5D=THREE&initialPeriod%5B%5D=FOUR&initialPeriod%5B%5D=FIVE&initialPeriod%5B%5D=TEN&initialPeriod%5B%5D=NO_INITIAL_PERIOD&tab=search

freeisgood

I wouldn't go for the interest only trap. You would get too comfortable paying less, and then how would you pay the lump sum at end of term?

Webbigail

Some great points coming through...


We don't live in Northern Ireland. We are in the south east but would love to live on Cornwall (that's a whole other dream!)


I will look for a good mortgage advisor and see if there are any other options to re-mortgage. I do really like the idea of a clean slate but if toughing it out is the best option then perhaps I need to toughen up a bit.


If I could see smaller mortgage payments, freeing up some money to pay debts then I might be tempted in staying put.


BTW My husband works full time and is paid well. I work 28 hours per week, also paid well. I work as many hours as possible WITHOUT paying for childcare. I could and would work more but this would also increase our outgoings.

freeisgood

Seriously an SOA might help us help you shave off some of your expenses too

sniggings

crazy in my opinion.

In 5 years time you'll be able to buy a bedsit the way things are going.

Take in a lodger, get a 2nd job, the last thing I would do is sell.

You are unhappy now with no money, what will change if you are saving every penny, and if you don't save, never get back on the ladder.

System

We have done exactly this but for different reasons ,in our case we don't want to buy again as it doesn't suit our circumstances.

sniggings

CHRISSYG wrote: »

We have done exactly this but for different reasons ,in our case we don't want to buy again as it doesn't suit our circumstances.

so you haven't done exactly the same the re buying is a major aspect of this plan.