Housing issue and considering a second child

noodledoodle78

tea_lover wrote: »

Have you also looked at your current finances and made sure that you're on the best rates for everything, claiming everything you can etc?

A mortgage of £730 on a £60k house seems huge (as does the negative equity of £65k) - but obviously I have no idea about the housing market in your area!

You may be able to get a better mortgage rate, which could help you pay things off quicker.

The house was purchased at £131K during the boom in our area. The exact same house next door is currently on the market at £65K. We have £114K outstanding on our mortgage at a fixed rate of 5.79% due to the fact we are in negative equity the rate is so high and we can't unfortunately approach other providers as we would be looking at a mortgage much greater than 100%.

noodledoodle78

ringo_24601 wrote: »

How sure are you about the bunk-beds? They don't normally take up more space than a 'regular' bed.

edit: Apparently the solution is to get a 'loft bed' and put a cot underneath it - http://www.ikea.com/gb/en/products/childrens-ikea-products/children-8-12/childrens-beds-8-12/tuffing-loft-bed-frame-art-90299449/

eg:

My mother-in-law has a 19 year age gap with her older sister - who 'co-raised' her with her mum.

We have a midi sleeper in his room at the minute which means he can store his toys and bits and pieces underneath. But this definitely looks like an option. Thank you.

Tammykitty

noodledoodle78 wrote: »

We have a midi sleeper bed in his room and when you open the door it hits the side of the bed. There is a small space at the bottom of his bed where we have a chest of drawers.

In our bedroom we have our double bed and a small bedside cabinet either side. There is space to walk around the bed but no space for drawers or a wardrobe. There is a door to a hotpress in our bedroom and we use the shelves to store our clothing etc. We don't have space for a wardrobe in the house!

noodledoodle78 wrote: »

The house was purchased at £131K during the boom in our area. The exact same house next door is currently on the market at £65K. We have £114K outstanding on our mortgage at a fixed rate of 5.79% due to the fact we are in negative equity the rate is so high and we can't unfortunately approach other providers as we would be looking at a mortgage much greater than 100%.

From the above posts - I am guessing you are in Belfast?


I think a lot of people are in similar situations, however don't assume because next door is £65k asking price, that's what yours is worth too - it could be a probate sales, priced for a quick sale etc.


Have you talked to a financial adviser, as I believe there are some mortgage providers who allow you to port a negative equity mortgage?


And finally - with around £50k of negative equity, high mortgage repayments, and a house too small for your needs - have you considered voluntary repossession or bankruptcy?

pollyanna24

House worth - £60K.
Negative equity - £65K

Does this mean you have a mortgage of £125K?

Have now seen what you wrote, so you can ignore this. Tricky situation to be in.

onlyroz

noodledoodle78 wrote: »

The house was purchased at £131K during the boom in our area. The exact same house next door is currently on the market at £65K. We have £114K outstanding on our mortgage at a fixed rate of 5.79% due to the fact we are in negative equity the rate is so high and we can't unfortunately approach other providers as we would be looking at a mortgage much greater than 100%.

Can you overpay the mortgage? On your current repayment schedule what do you estimate the mortgage balance to be in 2-3 years time?

Tammykitty

pollyanna24 wrote: »

House worth - £60K.
Negative equity - £65K

Does this mean you have a mortgage of £125K?

OP has already said - mortgage of £114k (House was £131k when bought)

chelseablue

No real advice but I know loads of people that just have the one child, due to housing and financial reasons.


Maybe myself included, I have one son who is 2.
If I did have another I would have to wait until he's in school due to childcare fees.


Plus my house needs work doing on it and we would also like to get married (which I wont be spending 20k on I can assure you!) so realistically my son would be 6 or 7 before we consider another


By which time I will be 38 so might be past it!

pollypenny

Difficult one. I think you'll regret it if you don't have another child, though.

Interesting to hear about your negative equity in face if all the complacent comments about house price booms. My DD is in exactly the same situation, having bought when prices were zooming up by the day in 2007.

You have my sympathy.

Person_one

I think the solution depends on what you are earning at the moment. If you can bring in enough to overpay the mortgage like crazy over the next year or two, you have a lot more options than if you're just making ends meet and can't realistically pay off the NE.

If you are never going to get out of the NE trap, would repossession and then renting be the worst thing if it means you can have the family size you want? Would it be worse than staying in the tiny house with two children 10+ years apart in age, or worse than not having the second child?

Person_one

chelseablue wrote: »

By which time I will be 38 so might be past it!

38 is not at all 'past it'!