Help Wife Drpopped £40,000 Bombshell

jmarch_2

My wife has dropped a massive bombshell.

Long story short...

I have Crohn's Disease and I have to work from home as a freelance web designer and marketer.

I get tired easily, going many years without being able to drive.

Before I stopped full-time work had a decent amount of money from a company sale, enough to pay off the mortgage.

I have had a lot to deal with, so to cut stress (not good for my Crohn's) my wife offered to handle all the accounts.

She has handled the accounts for years, I thought we were in a great position, mortgage paid off, saving money etc.

It now turns out that we have not paid off the mortgage and we have much less in the way of savings than I had thought.

Depressingly we cannot even pay the mortgage off as things now stand.

I would have liked to move, the idea being to ultimately buy a second house to rent out as my Pension.

I can't see that being on the cards unless we can get creative with what little we have:

Current House Value: £220,000 (Estimate)
Mortgage Redemption Amount: £80,000
Savings: £40,000

Can anyone think of a creative way for me to proceed?

Any advice to offer?

I was wondering if we could use the current house value in some way, to buy another property while renting the first.

Am also considering downsizing to pay everything off.

audigex

You don't say anything about your income, what size house it is etc.

When you say you can't pay the mortgage off, do you mean you can't afford the monthly payments, or that you can't pay it off in full?

With the limited information you give, I'd remortgage for £45k, keep £5k savings and then pay off the £45k mortgage as fast as possible with overpayments, then save for a second property.

You're only looking at mortgage payments of £200-400, so it should be affordable regardless, and you can put any spare cash into it.

TrickyDicky101

Income you/wife? Ages?

Where do you live?

Unless your wife's income is substantial, I cannot for the life of me see why you would want to invest in a Buy-to-let if only for the potential additional stress it would bring.