Interest rate rises is forcing us to put house on market

MORPH3US

eek wrote: »

Actually I may be being unfair here. When may be a suitable word. The question is then in what year will this the events the when refers to will occur.

Will that be 2008, 2012 or 2018? and can the poster weather the pain until it does occur?

Exactly, I agree!

In the short term (depending on what people mean by short term), interest rates going down is "if" and its a very big "if" at that.

In the longer term (again depending on how long is long) then its a case of "when"..

Agree though that the OP is looking short term because in the long term they may not have a house left to worry about!

M

lisyloo

.. but am getting stressed out by all the debt we are in, and the house move itself..

Ok, let's forget about the moralising and see what can be done to sort yourself out.

Firstly I suggest you start keeping a spreadsheet will ALL your incomings and outgoings on it. Include things like entertainment, birthday presents, holidays etc.

Secondly, are there any ways you could bring in more income. What about part time jobs. Shelf stacking, a bit of bar work, delivering papers etc.
What about getting a lodger (or maybe even 2). Do you have any spare bedrooms?

If it's not practical to earn any extra income then you need to look at cutting back (which you need to do anyway) and fortunately you are in the right place.
Start looking at any discretionary spending e.g. nights out, holidays, petrol when you could walk etc. and cut out what you can.
Try cheap days out with the family e.g. cyling with a picnic.
First look at the mortgage as that's likely to be the area where the biggest cutbacks can be made. Are you tied-in? If you don't know then find out. If you aren't tied in, then look at switching. If you find that daunting then use a mortgage broker (but make sure they don't charge you a fee).
Could you sensibly rearrange your debts e.g. consolidate onto the mortgage, make mortgage term longer, switch to I/O etc.
In general it makes more sense to pay off debts with higher rates first (sorry mum).
Once you've tackled the big items you can look at everything else e.g. mobile phones, gas, electricity, insurance, motoring costs etc.
You can save money on virtually anything on this site.
Could you save any money on motoring costs. e.g. could one of you cycle in the summer and save petrol or get rid of a car.
Could you save money by cutting back on any insurance which might be a bit of a "luxury" at the moment.
Are there any pension contributions you could temporarily cut back on.
What about mobile phones, SKY etc.

So in summary

1) You MUST write EVERYTHING down (pain I know but it's the only way to get everything under control).

2) Look at practical ways of getting more income

3) Look at ways of savings money (and this sites a great resource). Try and start with the areas where you might save most.

4) Cut back on any luxuries, which includes using the car when you don't need to.

emmalt

Hi Emmie,

Lisyloo has given you some really good advice here. A few more tips from me.

· When creating a budget base this on you basic salary, i.e. do not include bonuses, overtime etc. These are not guaranteed and should be seen as a plus.
· Could you live without a telly for a while? It may sound a bit extreme but that’s about £10 a month that could be saved. The extra time you suddenly have could be used earning extra cash.
· Could you sell some possessions at a car boot or on ebay? Clothes that you haven’t worn for a while for example.

Before you sell your house you need to take into account the fact that you will need to pay an estate agent and possibly stamp duty. Re-mortgaging, getting a lodger or possibly moving back with Mum and renting out might be better solutions.

Whatever you do, please learn from you mistakes. Always factor in interest rate rises when budgeting for a mortgage. They are a sad fact of life.

I used to have huge debts but thanks to some good luck I am now debt free (except for a mortgage). I have learnt from my mistakes and never want to be in that position again. I have a mantra when I see something I want. “I just want I don’t need”

Good luck.

Conrad

MORPH3US wrote: »

Its like all the muppets who constantly say there is going to be a house price crash but don't say when.... its impossible for them to ever be wrong because they just keep saying "it'll happen one day" :rolleyes::rolleyes:

All those 'muppets' include people like me.

I see your signature advises the world you are a business adviser.

I hope you're a good deal more business minded than any other business adviser I've ever met.

Tell me, if you were a climber would you respect advice from a non climbing, climbing adviser?

MORPH3US

Conrad wrote: »

All those 'muppets' include people like me.

I see your signature advises the world you are a business adviser.

I hope you're a good deal more business minded than any other business adviser I've ever met.

Tell me, if you were a climber would you respect advice from a non climbing, climbing adviser?

I'm not sure what you are getting at with any of the above, can you clarify please?

The answer to your question at the end is obviously "no" but I don't see what relevance it has..