Should we sell & rent to get out of debt?

Mkayla90

Hoping somebody can offer some advice.

We have been homeowners for 6 years now (bought in our early 20's)

We found a new home we love our offer in and we had 2 missed payments on the credit card that we didn't know about as we thought it had a zero balance.

Anyway we are struggling to get a new mortgage.

Our house needs a new roof and God nod what else. And due to our current outgoing a we just can afford any of this work and it's making us miserable.

We have a cash buyer for our home, if we sell we will make £66,000 on our home. But we only pay a £317 a month mortgage

Renting a place will be about 650-800 depending on what we go for.

We have a loan with £6500 on it a credit card with £4000 and then the new roof etc etc

It's really starting to bog us down, we aren't struggling to make any payments just miserable as their is nothing left at the end of the month.

Any advice would be great.

beecher2

Why don't you see a broker and find out what options you have. If you pay off your loan and credit card then you still have a deposit of £40,000 or so after fees. Your broker could advise you on whether buying now is an option, and how long you'd need to rent if that's the best option for you.

Another option would be to post a Statement of Affairs on the Debt Free Wannabe forum and find ways of cutting down bills/increasing income/paying down debts.

Pixie5740

How do you know that the house needs an entire new roof? I take it you don't budget for repairs & maintenance? In fact if you have a credit card with a £4K balance which you thought was zero do you budget (and stick to it) at all? If the answer to that is no then I don't necessarily selling up to pay off your debts is going to help. What was the loan for?

bigfreddiel

Madness, swap a monthly mortgage payment of £315 for rent of £800!

You can't afford it! Don't do it!

Cheers fj

zagubov

I'd go along with beecher2's suggestion of posting on the DebtFree Wannabe board and give yourself a good MSE spring clean, pumping any money you save into the credit card and loan, on time every time.

I'd be wary of selling up at this point if your accommodation costs are going to almost treble making your potential deposit shrink to nothing while you wait for your credit score to improve enough to get a new mortgage.

kimplus8

No do not give up your mortgage- renting will cripple you if you are struggling already. Plus at the end you have a house, with renting you are wasting the money away