Downsize to be mortage free?

meeemee

Hi just wondering if anyone had any advise please, we have a mortage with 16 years to run on it, we borrowed 195k and now have 160k left on it our house is valued at 330k so we could buy a smaller house outright for 170K, but we have two teenagers who are getting bigger by the day but we no onger have toys and trampolines etc so i feel we could affford to lose the study and fourth bedroom, i have looked at whats about but feel we need a larger budget to live happily but that would mean borrowing 40k,but the problem is we dont think we could get a mortage for this extra amount as our creditscore is bad, so do we stay where we are and not have enough money to save, move to a smaller house or sell and rent and in the meantime save like mad to be able to move again in a couple of years, but the kids are getting older so i fear they are missing out, any advise gratefully received!

SueP19

Hi meeemee

So many questions but first you mention credit score and that is the key on how you should proceed.................how bad is bad and why ??

meeemee

Hi, its bad with a capital B, we have both been ill over the past few years and ended up with a couple of ccjs and mort arrears, so this has been a major wake upcall as to why we should just sell and get rid of the mort and live abit, which is all well in writing but i fear in reaity we coud regret the downsize. thanks

SueP19

Hi meeemeee

My credit score is very poor (400 ish)

Last August we got to 11 days away from repossession :eek::eek::eek:

So I know what you're talking about. Huge wake up call

It might help if you do an SOA

http://www.stoozing.com/calculator/soa.php

I think you need to gather all the pro's and con's together first

What you fear is that you will loose the only asset you have that can salvage you from a bad situation if you downsize.

I would doubt with mortgage arrears you would be able to borrow that 40k you need.

Post your SOA and see if these wonderful people can help you keep your home and get your mortgage down at the same time :T

meeemee

Thanks,its scary when you look at the harsh truth of the situation, i think realistically we will have to get a different mindset from our previous buying eperiences and think we are not just buying a house but a new way of life with no worries about money and be able to have a bit of a life going/eating out etc, thanks

SueP19

Be brave, stay on here and even if you just read some diaries it really helps

Sounds to me as if you need support :grouphug:

meeemee

thank you xx