Difficult situation

Cakeguts

The point about you renting is that if you find yourself in a position like the one you are in it is far less complicated to move than if you own the property.

Grumpelstiltskin

dks wrote: »

Thank you for the replies.

We have decided that renting out our house wouldn't be worth it given that the costs and tenants could be a nightmare.

The problem with the neighbours is just the neighbours attached to us (semi). It's between us and them, there wouldn't be an issue with new occupants as its personal (can't go into details as police may be getting involved). This is why for the kids sake and ours we need to move.

We currently pay 450 mortgage. Rent is about 700 for a smaller house, 850 for same size.

Would selling up and renting ourselves be sensible?

It's not really about clearing the debt it's more getting away from neighbours.

But the worry of 5 years renting and saving to get back on the ladder whilst maybe moving if landlord evicted us for any reason. It worries me because our kids are only 1 & 7.

With several defaults in 2014, plus a dmp until 2021, is a mortgage possible? We are on halifax's svr, wouldn't mind paying a bit extra and it is portable. But don't they credit check you? We ported in 2012 before the debt and it was a whole new application

So you have £50.000 equity ?

That will be less after costs involved.

What do you intend to do with this money?

How much do you owe on your DMP?

Defaults will drop off in 2020.

You do realize now you won't be able to claim any housing / council tax benefits with capital in the bank.

hannahbond37

I would just stay where you are - if police are getting involved ie something criminal has happened then it will be dealt with by the law. Other than that just ignore them, if it isn't about clearing the debt then you don't need to sell to loosen some cash.

There is no way you'll get a mortgage - porting is a whole new app.

Renting is so much more unstable and it looks like your current mortgage payment is almost half of what the rent would be.

I honestly can't see how moving house in your situation would be more about getting away from neighbours than clearing debt - I would focus on that with all the extra income you clearly have if you are considering renting for 700

Normally when we have disputes with people we just want to be gone and done with it - take a few days and think about whether the upheaval of your whole life is worth it for people who you don't even need to speak too

carefullycautious

You say it isn't about clearing the debt. Well I'm afraid it is. Without debt you would be in a better position to make life changing decisions without worry.


If you don't understand that I'm speechless as you will only get yourself into a more serious situation


I'm out.

tlc678910

Hi,
It seems it will cost you £4,800 extra each year to rent a house of a similar size rather than stay where you are (£850 new rent - 450 current mortgage) X 12 months.
or £24,000 over 5 years.
That is before you factor in any capital repayment if you are on a repayment mortgage (£10K?)
Also the cost of selling your home (1.5K), agent fees and deposit (1K) and moving costs - moving at least once and more if a landlord serves you notice during this time.

So the real cost you need to consider is is it worth £37K to you to get away from your neighbours right now or can you manage to hang on in there and see if things improve?
Tlc

Pa_Ja

Things must be bad if it has came to this. I feel for you.
Given your current credit score, my advice would be to do retain your current property; either sit tight and see it out or put it on the rental market. Not all tenants are bad you know.
As someone has pointed out, you stand to lose a lot of money if you sell up and hop on the rental market.

leespot

Stay put and ride it out. You might never be able to save up enough money to ever get back on the property ladder.

Marvel1

With regards to renting out your house, do you know what you must do in regards to the law?

Arleen wrote: »

Renting is cheaper monthly than a mortgage. While there are exceptions of this, for example, you were in perfect time and place when buying a house, it generally will cost you less to rent.

My mortgage was about £352 when I first moved in, since rates dropped is now £197.

theartfullodger

dks wrote: »

.....
I own a house worth around 150-160k,with a mortgage of 100k, The 150k is quite accurate I think.

I am on a joint DMP with my husband, approx 5 years left. Both of our credit ratings are ruined, lots of defaults (all in 2014 though), obviously late payments.

Never missed a mortgage payment or been late with it though, and had a mortgage since 2009.

For various reasons we are desperate to move, we pretty much need to (neighbour issues)

My husband wants to sell up and move into rented. Rent would be double what we pay on our mortgage now but we would get help with it due to income. .......

May I please check I understand: For the avoidance of doubt I am neither criticizing nor praising your approach, just checking I understand what you are proposing: You've got into debt and see renting, thus getting HB/LHA, at the tax-payer's expense, as a way out?

If possible a yes or no answer would be helpful, please.

Best wishes to all at this festive season of goodwill to all.

Crashy_Time

AnotherJoe wrote: »

Eh? How do landlords make money in that case ???????
Why is it so many posters here wish to buy because their mortgage will be lower than their rent?

https://www.property118.com/negative-equity-end-mortgage-term/93304/


They want to live the dream!