Selling after divorce and moving to renting...

tink_1983

I will be selling a jointly owned home in the new year, I should come out with £40k.
I don't have any extra money for fees/stamp duty/surveys etc, and on my part time salary doubt ill be able to borrow enough for the size house me and my two kids need.


Am I silly to move back to renting and invest the £40k? I will look to buy again once kids in school and I can work full time again.


Or should I look to buy just anything to stay on the ladder?


thanks

Guest101

really not enough info.


kids ages, (child maintenance?), salary, area....

tink_1983

Guest101 wrote: »

really not enough info.


kids ages, (child maintenance?), salary, area....

kids are 2 and 4yrs old, 250 a month maintenance, salary 21k, Bedfordshire.


thanks

Pixie5740

Would £40k plus whatever mortgage you can get with your income actually buy you anything in Bedfordshire? You could try a few mortgage lenders online calculators to work that out.

I don't necessarily think that buying just anything is better than renting if all you can afford is a total hovel in a shady part of town.

tink_1983

Pixie5740 wrote: »

Would £40k plus whatever mortgage you can get with your income actually buy you anything in Bedfordshire? You could try a few mortgage lenders online calculators to work that out.

I don't necessarily think that buying just anything is better than renting if all you can afford is a total hovel in a shady part of town.

Good question, I could maybe get a two bed flat, but it wouldn't be suitable, the other option is buying with a friend to use her salary in mortgage application, but then all the equity and stamp duty comes from me and I would then have to come up with some agreement about securing my equity should we sell etc.

Pixie5740

Buying with a friend has the potential to get very messy. If that was the only way to buy I would rent.

What about shared ownership? You wouldn't need to be able to afford the full cost of the property straight away and could staircase towards 100% ownership once you get back into full time work. Plus it would give you more security than renting.