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Selling to pay off debts

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Selling to pay off debts

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Nicola15116Nicola15116 Forumite
1 posts
MoneySaving Newbie
I have an interest only mortgage £110 per month. i am no longer able to work due to disabilities, my problem is that my income is very low and the house needs a lot of repairs. I am also in £7000 worth of debt and my mortgage is £86.700. I have been offered £140.000 witch would pay off my mortgage and my debts and leave me some left over, but i would have no where to live so i would have to private rent. private rent would eat up the profit i made off the house in no time but i would be debt free. My gardens are an embarrassment as i cant afford to do anything with them and cant manage them myself. my son is 21 and lives with me but does nothing around the house. Any advice would be appreciated. I've also promised the neighbour i would sell it to him but nothing signed. I've been here 19 years and i'm scared of becoming homeless.  

Replies

  • Willing2LearnWilling2Learn Forumite
    5.7K posts
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    Hi Nicola15116 and welcome to the forum  :)

    The people here need more details from you, so that we can give you the best advice, guidance and support.  Please can you complete a Statement of Affairs (SOA) and then copy/paste into this thread.  Please remember to click on the 'format for MSE' button, near the bottom of the form. :)


    Also, just to make sure you are getting your full DWP entitlement, I suggest you use the Turn2Us Benefit Calculator to confirm what you should be getting.  :)
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • monetxchangemonetxchange Forumite
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    Definitely post up an SOA and everyone will help out in advising you. You're in the right place!

    My gut instinct is selling up to 'clear' debt inevitably can lead to further debt down the road. You're only a very low mortgage at the moment, and even in the cheapest areas rent would be five times that, which would be completely unaffordable for you. Plus take into mind you'll need large deposits and rent in advance if you went down that route. So if you can stick it out in the property despite it needing some stuff done, that may prove much more beneficial.

    One large area of fat to trim already in terms of cutting costs would be the 21-year-old lump that you've currently got running up your bills. It's disgraceful he won't lift a finger around the house when he has a mum who's disabilities are so bad that she's had to give up work. Stop enabling him to behave like this. Does he contribute at all? If not, it's time that he did so, or tell him he's old enough to find somewhere of his own.
    LBM: 05/05/2019 Highest Debt: £37,514 Debt Free: 06/03/2020 B)
  • theoreticatheoretica Forumite
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    It might be worth asking around about help with the garden. In cities there are often people without gardens of their own who are keen to adopt others. It might not look how you would choose, but would be cared for.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • Unicorn_cottageUnicorn_cottage Forumite
    456 posts
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    When does your mortgage term end? Does your son pay you any board?
    "Everything comes to him who hustles while he waits" Thomas Edison
    Following the Martin mantra "Earn more, have less debt, improve credit worthiness" :money:
  • -taff-taff Forumite
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    Have you gone on turn2us to check what benefits you're entitled to? Can you apply for PIP? Are you managing to pay your mortgage? Does your son give you rent or keep? Can he? I'm sure he's able enough to go into the garden and cut the grass. Or he could find his own place to live. Time to have a put up or shut up chat with him probably.
    It's not really a good idea to sell your house atm, until you know what your exact income is. If you sell your house and pay off your debts you're back to private renting so don't do that yet. The debts can wait for now unless they are council tax or mortgage payments.
    Your priority payments are council tax and mortgage. Anything else can be defaulted on for now if you're struggling to pay.
  • edited 24 February at 12:31PM
    dan958dan958 Forumite
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    edited 24 February at 12:31PM
    How much board is your son paying?
  • EssexHebrideanEssexHebridean Forumite
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    I'm going to suggest that we let the OP come back with her SOA - which will clarify the question of what her son contributes - before we start bashing hi. While she "might" mean that he's a lazy item who doesn't do anything, she might also mean that he works long hours and doesn't have the free time to do so, so contributes in terms of financial input instead...we probably shouldn't judge until that is clarified. 

    @Nicola15116  - I'm echoing those who are saying to complete an SOA - you have already been given the link to do this. Don't rush into ANYTHING regarding the house, however it might be worth having an independent valuation from an estate agent to clarify if the 140k that you have been offered is fair and reasonable, should you decide to follow that route once all options have been explored. You are right to be cautious about making yourself voluntarily homeless though. 

    Do you have anything at all in place to cover the capital on the mortgage when your term ends? That is also something to consider. 
    MORTGAGE FREE 30/09/2016 :D
    SOA CALCULATOR (for DFW newbies): SOA Calculator
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