Large Debt and Moving House

jimhed

Hi,

I'm a 25 year old currently with a mortgage on the flat I'm living in and I have large debts due to issues and bad circumstances; £13800 Personal Loan, £4500 credit card, £4600 Credit Card and £3100 Credit Card.

Due to the low affordability scores and a reducing credit score, I'm not sure if I would be able to get a new mortgage at this point.

The question is, I'm wanting to move house as the flat I am in is too far outside of the city centre and the internet is still terrible (3Mb/s in a new build with no fibre).

Do you guys think moving with a mortgage is a possibility or will I need to do something like sell the flat, pay off the debts with the equity and rent while I build a deposit again?

Thanks,

James

middleclassbutpoor

Not enough info to say... how much income do you plus anyone else have to be considered for a mortgage? How much would you need to borrow and what deposit would you have?

Cakeguts

Forget the internet that is a luxury that you can't afford. I would have thought that paying off the debts would have been higher priority than internet.

giraffe69

In the context internet is peanuts.

Cakeguts

giraffe69 wrote: »

In the context internet is peanuts.

Yes but not worth moving house for when someone has this much debt.

Murphybear

jimhed wrote: »

Hi,

I'm a 25 year old currently with a mortgage on the flat I'm living in and I have large debts due to issues and bad circumstances; £13800 Personal Loan, £4500 credit card, £4600 Credit Card and £3100 Credit Card.

Due to the low affordability scores and a reducing credit score, I'm not sure if I would be able to get a new mortgage at this point.

The question is, I'm wanting to move house as the flat I am in is too far outside of the city centre and the internet is still terrible (3Mb/s in a new build with no fibre).

Do you guys think moving with a mortgage is a possibility or will I need to do something like sell the flat, pay off the debts with the equity and rent while I build a deposit again?

Thanks,

James

Believe it or not, some people consider 3 Mb as quite good:rotfl: we lived on a farmhouse on the edge of Dartmoor, we got less than that but I still managed to watch films on Netflix without any problems.

You need to to get your finances straightened out a bit before considering an expensive move just to up your internet

System

You can't afford to move. You won't get another mortgage as you'll fail on the debt:income ratio and even letting agents may turn you down with your current debt as you'll likely not pass a credit check with them. If you do sell the property then you're going to see 1% of the sale value eaten up in estate agent fees and another grand in legal fees plus there'll be interest penalties on the mortgage if you're in a fixed deal so you may find some or all of the equity eaten up by those enough to scupper the plans of walking away completely debt free.

Selling up and renting then building up a deposit again would be the only option open to you but I seriously doubt that once in the city centre even closer to where you can blow your cash on an evening and weekend that a deposit will ever get saved up. After all currently you're TWENTY SIX THOUSAND POUNDS IN DEBT and that was from living beyond your means, no doubt a large chunk of that from socialising.

The reasons you're wanting to move are, to be quite frank, petty. The only reason to move nearer the city centre would be to be able to spend more time socialising there which you can't afford to do and is most likely what got you into the debt mess you're in now. Moving to the city centre won't guarantee faster internet - I used to do installations of systems in businesses in central London, say Westminster, and the internet connections were so bad in many cases you were better off using a mobile phone as a hotspot.