I am going to sell my house and rent it back.

Burlesque_Babe

Please try the CCCS again, they are still open for another 2 hours.

Triker

Have you any stuff in your house you can sell to throw at your debt?

Do you ebay anything, every bit helps when getting debt to a managable level.


Have you really reduced all your outgoings, have you looked at uswitch for cheaper utilities,

the old style forum on here for cheaper meals/food buying

insurance cost cutting articles by Martin to knock down your car insurance.

Can you sell your car and get a smaller, more fuel efficient, one, do you need a car if your wife walks to work and your self employed?

This is a time to think very creatively, there are ways to do this but you need to refocus your aim away from the 'sell house rent back', thought to the 'right, we're going to nail this secured debt once and for all' thought.

Good luck.

Triker

Incidently I have my house for sale in order to clear our debts, it's in the south west and the market is very [STRIKE]dead[/STRIKE] slow at the moment.

Mr_Spangle_Pants

Cheers Triker, my unsecured debts are next to zero. I have forgotten what a credit card looks like !!

Burlesque_Babe

What was the advice of the CAB? Did you speak to an advisor?

Toto

Mr S, let me just throw one more thing into the arena. If you sell to rent you will very likely be made to rent on the open market within 12 months as we have explained. Now, what will you do in a few years when Mrs S retires? If you re-mortgage, the likely scenario would be that you will either, pay off your mortgage before then, or, have enough equity to downsize and live your retirement years rent/mortgage free. Or even, if all else fails and you end up being re-possesed the council will house you.

If you sell to the sharks, yes you will have the few grand you are left with but what about your future? you won't be in your home I can guarantee that, you will be privately renting and the council won't re-house you if you have to leave, you will probably bitterly regret this decision.

So, I would either, look at equity release to pay off the secured loan, or, sell on the open market and downsize now, you would have a great deposit and would most likely be able to look at clearing that mortgage in the future, you would have choices though.

Somerset

Mr_Spangle_Pants wrote: »

- How old are you 51

- is your mortgage repayment or interest only interest only

- How much is outstanding on your mortgage £130000

- What is the value of your property £195000

- How much is your secured loan per month, how much is outstanding, what is the APR £225 12.2% £21890

The bad news for what it's worth. I don't believe that vaue figure of 195K. I'm in the South West, property is moving slowly - everything apart from ftb's is capabe of being discounted. You said ''one viewing in three months '' ? so I reckon a 'norma seller' would probably accept 180K if offered. So assume your house is worth 180K in this market.

Your mortgage is 130K & secured loan approx 22K - totall 152K. You want 'A Quick Sale' type of company. The 85% you quote is the minimum discount they'd consider - the only negotiation would be down. Truthfully these companies would expect 30%, you might find someone accepting 20% but that would be it.

So house Value 180K less discount expected 20% min i.e. 36K = 146K offer but ...... you have 152Kish of debt to clear from that ...... doesn't work. You 'might' get closer to the 152K if you're very lucky - but certainy won't bank the 20K you were hoping for. You'll break even. Is that acceptable to you ? Plus your security of tenure is not very secure ..... you might get lucky or you might not ( everyone on here said you'll be turfed out after 6 months which is b******s - it depends on your buyer - their finances - and their circumstances - but it IS possible and DOES happen )

Only you & your wife can judge whether the risk is worth it.

Next scenario is you downsize - but you said you don't want to leave ??? Might have to consider it.

Don't mean to be the prophet of doom but ....
- You have ill health and may not be able to return to work
- Possibly could do something else but still il health to get over
- You're 51 ( sorry !!!! )
- You're on interest only so you'l still need to find the capital - where from ??
- Your wife is knackered and the only earner so it's all down to her and she's worried stiff
- The mortgage and loan payments represent a HUGE proportion of your income.
- If interest rates go up again you're probably stuffed

Seriously think about down-sizing !!

Toto

One other thing Ms S, the £21,890 is that the actual redemption figure? Have you got a closing balance for paying off the loan from first plus? This is crucial because there will be redemption fees etc.

Mr_Spangle_Pants

Somerset, I appreciate your realism, today I sacked the !!!!less estate agent. I am going to make enquiries. Toto, that was the redemption.

studio_7

Hi Mr_Spangle_Pants,

Can you tell me where abouts you are from? .... sorry, this may be in the thread somewhere but I have only caught the tailend of this.

Regards