Should i stay or should i go?

SquatNow

Sell up and buy again after the crash.

It comes down to 1 simple point. If you don't sell the house it will be reposessed and the mortgage company will set the auction reserve at a level high enough for them to recvoer their money and fees. You'll get nothing... you might even end up still owing the bank money.

Sell while you have a chance. Price it VERY aggressively... if that means only getting £10k profit instead of £24k so be it.... it's still better than having it repossessed and getting zero.

princepilot

The money worries were a thing of the past. I am bringing more than enough to afford a bigger mortgage. The question was is it safe to wait till next august to sell or do people think the crash if it happens will come before that?

I am back in full time work and have help at home so money isnt the issue anymore.

As for affording a bigger mortgage that wouldnt be a problem either. I have nearly £800 a month left over every month at the moment and thats paying my mortgage and arrears (750) , so could easily afford say £1000-£1100 a month mortgage

Matt

mjdh1957

No-one knows what is going to happen between now and August. I think the crash is already starting but my opinion isn't shared by a lot of people. I'd say sell up now, bank the proceeds in a high interest account and rent for a while, and carry on saving.

In many areas, you can rent a good place for a lot less than the mortgage would cost. And of course you can carry on saving for a good deposit.

If the crash comes, you'll be in a good position to buy.

If prices stagnate, you'll still have gained interest on your savings and added to them so can put a good deposit down on a decent house for the same price it costs today.

But I wouldn't advise making a major decision based on opinions received on a free Internet forum!

Good luck whatever you decide.

silvercar

With a damaged credit rating, and mortgage arrears will have done some damage, you won't get a mortgage at a decent rate.

You will also need a decent deposit and will probably be restricted on mortgage size.

Any new mortgage will involve a new lending decision and your arrears will have had an affect. If you are seriously consider buying something else, I would suggest speaking to a mortgage brokernow before you get too involved in the process.

66k at 5.5% is £302 per month, borrowing 90k at 7% would cost you £525, borrowing 120k would cost you £700!

hedgehogpenguin

If you stay there will be trouble .... If you go it will be double....

Notlob

hedgehogpenguin wrote: »

If you stay there will be trouble .... If you go it will be double....

This indecision’s bugging me...........Should I cool it or should I blow?

mystic_trev

princepilot wrote: »

Because of the crappy area. And i have made alot of money on it so why not sell up and start a fresh in an area i can afford?

Matt

Matt

With the arrears you've accumulated, you're in a !!!!!! load of trouble. Sub prime rates were high before the Northern Rock episode. With your arrears it would be doubtful that anyone would lend you money. Stay put and pay off the arrears, before you get repo'd.

pamaris

If you sell, I think that in order to start afresh you will have to rent for a few years to rebuild your credit rating.

So, your choices may be a) Pay off your arrears, and stay where you are as a homeowner. or b) Sell and rent in a nicer area. I don't think that buying in a nicer area is an option at this point.

moneysavinmonkey

princepilot wrote: »

Okay,

If i sell now i stand to make 24 , or if i sell 10 months down the line i stand to possibly make 30k , alot of difference.

Matt

Where did you get these numbers from - did you just pluck them out of the air? How do you know what you house will sell for.. the market conditions are changing rapidly at the moment....

If you say you have £800 extra a month coming in then I would pay down those arrears as quick as possible, then save save save as you will likely need a bigger deposit when you come to move as lending conditions have tightened and doesn't sound like you credit rating will be that great....

Given that you are looking to trade up the ladder then if the crash comes you will be in a good position as your next property will likely have gone down in value more than your present one.

I don't think you will be able to move to the nicer area now as you will need to clear your arrears first and start building up your credit rating again.

princepilot

No , i didnt just pluck them out of the air?!?! I based them on 4 identical properties selling in my street for 90k, 89k, 92k, 88k

Why are people so hostile on here? , Geeez

As for not being able to get a good rate. I have my own business now so i could just put my partner (not married yet) , as the employee and put the mortgage in her name.

Thanks for the replies who did so without snidy remarks

Matt