selling up & starting over!

sira_2

Hi, we're currently selling our house to pay off our debts and hopefully start again. We have decided we want to rent for a short while so we can pay off everyone,hopefully with full & final settlement figures, then take stock, see how much we're left with (which won't be loads) then buy again, well that's the plan. Just wondering if anyone else has done this & how easy was it to get back on the property lader as this is what scares us the most, that we will have difficulty getting a mortgage. etc. We are also considering shared ownership we did apply but as we have yet to sell we're considered adequately housed but was told if we were in rented accomodation we would be considered. Not an ideal situation but would be a start & if we were renting anyway would be much the same but with the added bonus of owning half the property! Any advice would be appreciated a always. Thank you.

Jenna

Hey,

Just a quick thought - have you looked at rental prices in your area vs. what you currently pay on your mortgage? If we had (or could get! The deposit needed is massive!) a 100% mortgage on the flat we're renting, it would cost circa £700 / month - as it is, we pay nearly £1,000 / month in rent. But that said, it's an expensive area we live in, so! But tis worth looking into a bit before you sell up anyhoo :rolleyes:

No doubt others will be along shortly with far better advice than mine! Hope it goes well xx

Karmacat

Hi there sira

Sorry, I can't help with the technicalities of getting back onto the property ladder and whatnot. But what I would ask you to think seriously about is the reason for your debts, and whether those debts are going to happen again. If you do let them run up again, then all the effort you're currently making will have been for nothing, so you need to know why you got into debt in the first place and how to stop it happening again. Is it possible to post about that?

So, the advice, if you can call it that, is to look seriously at your own spending habits, whether the debt comes from day to day expenses, or a badly considered property purchase, whatever. Hope that makes sense.

tallyhoh

Hi,
Just thinking about your credit, are you okay with it? are you sure that you will be able to get another mortgage

melfi

Hey,

I have just done the exactly same thing. We move out on the 12th of October, I am so excited. We are gonna be completely debt free and still have a decent amount of savings.

I know alot of people think that being on the housing ladder is the most important thing, and I did for a while but I decided that living life instead of just managing was far more important.

We were scraping by and no more. We don't have money to buy anything nice, my partners teeth a pretty much rotting out his head and we couldn't afford to fix them, we have never been on holiday together, we can't even go to the cinema without feeling guilty.

I am really looking forward to my debt free and mortgage free life.

OOh I should mention that about 2 years back we got a fixed rate mortgage for 25 years. And now 2 years on to get our payment anywhere near what they were before we had to get a new fixed rate for 30 years. So 2 years on we are like 7 years further back. So surely we are just renting from the bank?? because at this rate we are never ever going to own our house anyway - Just a though!

Anyway good luck in your new debtfree life, remember life is for living!! HAVE FUN!! ooh and don't overspend aagin!

x

sira_2

Hi there thanks for your postings. Just to fill you in Karmacat, a few years back we made the stupid decision of using one of these online companies to consolidate our debts we were so blinkered by the fact we were going to be rid of our debts we never really considered whether we could really, honestly afford the repayments. The guy talked the right talk & didnt really go through our finances to advice us properly. With the interest rates going up & up so did our mortgage & the whole process started again. When we sell on top of everything else we have a huge redemption fee which is fixed until the year 2030!!! Think we've learnt our lesson big time this is why shared ownership appeals so much as we would have a decent family home for the kids, partly owned, but the repayments would be so much less than getting a full mortgage again. Obviously renting is expensive but it's still less than what our mortgage is in the meantime i'm looking to go back to work full time. As for loans, credit cards etc. believe me we won't touch them with a barge pole, we've lost just about everything & will struggle to start over, but we have each other & i'm sure in time will sort ourselves out & i keep reminding myself there are people here in a worse situation at least we're able to repay the debts albeit it at the cost of our home but knowing we will be rid of them will be a great weight of our minds.