Best way to raise funding?

samson1313

Hi i own my house outright so have no mortgage at the moment but i do have just over £18000 debts spread between a credit card (currently interest free for about another 10 months) and 2 personal loans both roughly £6200 between these and other things car insurance phone etc my monthly outgoings are quite expensive (about £1250 a month before i even eat!) i can manage these payments just but its getting me down a bit so i'm looking for a way to change my circumstances a bit.

My house has just been valued at £125000, i've seen another similar house in the area that needs some work but not loads for £103000 so i could sell my house buy the other house and clear all my debt and have enough left over to do the other house up pretty much leaving me about £1000 a month better off!

The only problem is i think the other house will sell pretty quickly and even if i get my house up for sale this week i'm sure it would take a month or two to sell by which time i will have missed out on the other house.

So i'm trying to think of options, i know i could remortgage against my house as a buy to let and get roughly £100000 out of it which would be a good long run investment as i would own two properties but it wouldnt solve the current issue of my outstanding debts and would actually have to borrow about another £5000 to buy the new house with conveyancing fee's etc

Is there another way i could raise the £103000 to buy the new house while i wait for my current house to sell?

Or any other suggestions welcome, i've been a bit unwell recently and just want to simplify my life a bit and be debt free for the first time in about 15 years!

Foxy-Stoat_3

Make an offer and put your house up for sale. You will be a link the chain as with most other house sales.

Up to the vender if he accepts your offer or wants a quicker sale.

Pixie5740

What about just taking out a residential mortgage against your current home and use the money to consolidate your debts? Although you do need to be aware that although the monthly repayments would be less you would probably end up repaying more in the long run. You would also be turning unsecured debts into a secured debt.

Wouldn't that be easier than trying to sell one house and buy another in the same street?

Foxy-Stoat_3

If you have no mortgage or rent payments, can you not plough more money into clearing your unsecured debt?

Pixie5740

I don't understand why the OP has to buy a new property at all.

Current property: £125k
Mortgage: £18k

Giving a LTV of under 15%.

Why go to the hassle of buying and selling when releasing the equity from the current property and remaining in the current property would be easier all round?

-taff

Think very carefully before you turn unsecured debt into secured debt. It's not a very good idea unless you are absolutely certain you will never lose your job or be unable to pay.

Even if you sold your flat for 125, and bought for 103, you still have to pay lawyers, estate agents, moving costs, stamp duty etc. You may end up with less than a shiny figure.