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Any other options
dwill1503
Posts: 142 Forumite
We own a house worth 200k, with mortgage balance of 95k. We have 13k debt and as we had a Debt Line payment plan in place we have quite a bit of negative credit history. We think our only option is to sell the house, pay off debt and then in 6 years (or however long it takes to rebuild credit history) we start again. By which time, the children will be older and we will both be back to work full time.
In the mean time we would use the excess cash to buy something elsewhere that we can rent out and save the income. We don't live in the house in question as we've had consent to let for 18 months so are aware of the landlord process.
We were hoping originally we would just be able to move house with Nationwide to a cheaper house (reducing LTV from 90% to 47% but NW said no). We doubt we would get another mortgage elsewhere and certainly not on the rate we have now and are happy to be first time buyers when we are 40.
Does this sound sensible or are we missing something?
In the mean time we would use the excess cash to buy something elsewhere that we can rent out and save the income. We don't live in the house in question as we've had consent to let for 18 months so are aware of the landlord process.
We were hoping originally we would just be able to move house with Nationwide to a cheaper house (reducing LTV from 90% to 47% but NW said no). We doubt we would get another mortgage elsewhere and certainly not on the rate we have now and are happy to be first time buyers when we are 40.
Does this sound sensible or are we missing something?
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Comments
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What is the actually problem as you are- are you struggling to pay everything?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 -
Nothing negative in settling your debts and creating a fresh start for yourselves. The sooner you do it the sooner the rebuilding process commences. Sounds as if you would still have a sizable amount of equity to use as a deposit in the future.0
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First time buyers at 40 when you own property now?Slummy mummy!0
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Staying as we are is just delaying the rebuilding of the credit history.
Thanks Thrugelmir - I think we are 99% certain this is the way we'll go - its just good to have different opinions in case we have missed an option
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Staying as we are is just delaying the rebuilding of the credit history.
Thanks Thrugelmir - I think we are 99% certain this is the way we'll go - its just good to have different opinions in case we have missed an option
Debt is debt. Making life changing decisions and tackling problems head on isn't easy. What you can't buy is peace of mind though. Removing all that stress and worry. Far better to channel ones energies into something positive.0 -
Thank you Thrugelmir 0
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