Confused - best option?

bellola

Hi all,


Just looking for a bit of advice please. Apologies if this is long...


Husband and I have a 2 bed home which is mortgaged. House is worth around £145k and our mortgage is currently £95k. We have two children with a 3rd on the way so quite squished and it's going to get worse! My husband is self employed now and has been for just over 2 and a half years. I work part time but will be going on maternity leave in October/November time. We started thinking about moving/re-mortgaging back in December last year but this is still ongoing, the broker has been rather useless as have the mortgage company. In the time it has taken my husband now has another year of accounts and we have fallen pregnant again. The original plan was to re-mortgage and borrow an extra £20k to build an extension. We have applied for planning permission and the neighbours are now making things difficult.


We also have a lot of debt, around £23k. I'm really torn about what to do for the best. We have toyed with a few ideas...


1. Carry on with the re-mortgage - if the planning gets refused we would pay our debt off and just live squashed in the house for another couple of years. If it is approved then we would build the extension (although I am loathe to do this now and continue living here with difficult neighbours).


2. Try and get a mortgage to move - currently only looking at around £140k then with an extra £15-£20k deposit - it wouldn't buy us anything much bigger


3. Sell the house, pay the debt off and rent a bigger house. The rent would be twice as much as what we pay for our mortgage now but we wouldn't have the debt hanging over us


4. Rent our house out and rent something bigger


I am so stuck. I feel like the clock is ticking as me being on maternity is going to hold us back even more.

csgohan4

6 months and no mortgage decision, please change mortgage brokers and leave a review for your current ones on a rated website would be first off.


Extension can this wait? your in a lot of debt, however not enough info on income. Your change in circumstances will reduce your chances of a mortgage

bellola

Thanks, yes, they have been awful.


Yes, the extension can wait, the baby is due in December and can be in with us for a good 6-9m at least. The majority of our debt is due to be paid of by June 2017 so we will be in a much better position then. However, by then I will have 3 kids under 5, so it is possible that I may not be working or if I am the majority of my wage will be going on childcare. Husband currently earns approx. £27-£28k and my wage is around £12.5k. I am just conscious that the decision we make needs to be suitable for us as a family to live for the next few years.