Advice on voluntary repossession

JamoLew

First of all - don't panic, all is not lost
Second - please do NOT take any more loans out, you cannot afford to repay them
Third - one or both of you need to either increase your working hours and/or get a second job to get those loans paid off asap

Smiddy20

My parents said they will
give me the money.
I understand completely about insecurity rental but  the house i want are built for rent so unlikely any time soon. If i left the house  went bankcrupt then potentially could be debt free in 12months, just sounds more appealing than living here.
I want to go on holidays with the family and do nice things  a fresh start will give me that i dont however want To be skimping every penny spare  into this house.

Smiddy20

The house i cannot tel you how much we hate it

ryanm8655

Sorry to be harsh but I think you need to look at this objectively and maturely.

Your unsecured debts are your issues, yet you’re fixated on hating the house. You’ve just revealed you want a life style you just can’t afford and I think that’s the real issue here. It’s clear you haven’t spent £41k on house repairs, particularly as a chunk of it is store cards. You also owe your parents money, so presumably had help with a deposit?

The fact is your income is low for a family of 4. Your mortgage is pretty low, new build rent will be far higher. You can’t afford a flashy lifestyle on your income for a family of 4, especially with debt.

Unfortunately there isn’t a short cut to a nice lifestyle and no debt. Renting and bankruptcy is not the answer...

I haven’t had a holiday in well over a year, I’m a single bloke who earns considerably more. I’ve also had to move back home, where I have zero privacy and often have to ask permission to leave the house. Unfortunately we have to make sacrifices in the short term if we want to be debt free.

I get where you’re coming from, I was looking for easy options for clearing my debt where I wouldn’t have to compromise my lifestyle. Sadly I realised they don’t exist.

You’ve had some great advice so far. Unfortunately you are where you are but fortunately you have a solution available that will keep a roof over your head, a debt management plan. A roof over your head is not something to take for granted.

Smiddy20

I get your point   Ive not had holiday in 7 years

sharpe106

As others have said , giving back the house will not put you in any better position, if anything it will be worse. You need to make a plan on tacking the debt and at the moment your best option still seems to be DMP.  Then you need to find a way not to get into this situation again. 

Smiddy20

I just dont seem how its not the best option

IrishSean

Trying to 'hand keys back' is the equivalence of 'throw the chips in the air & see where they land'.

That's not a solution to your debt problem: in simple terms, you can afford to live and pay your mortgage. Even if you decided to default on every other debt that's a better option than effectively making yourself homeless.

I worry you look enviously at the 'new builds for rental' thinking if someone takes this house I don't like off me, makes me bankrupt, I can wait 6 years debt wiped & life'll be great.

I'm not going to relist the reasons none of that's going to happen but it won't. 

 We're still in our starter home; I need to spend thousands on it: some days I hate it cause it reminds me of all the debt & financial mistakes i've made over the years. But I wouldn't 'hand it back' thinking there's an easy option.

Talk to your parents again; I think you need financial & emotional support. In a post coronavirus world there'll be hundreds queuing for those rental new builds with no debt, perfect credit files & a large deposit: the difference is they were forced to sell the home they loved due to redundancy, perhaps x2, or their business folded. Landlords will snap those tenants up.

I hope you get through this but I do worry, even with dozens of sensible posts, the penny hasn't dropped yet. 

enthusiasticsaver

Smiddy20 said:

My parents said they will
give me the money.
I understand completely about insecurity rental but  the house i want are built for rent so unlikely any time soon. If i left the house  went bankcrupt then potentially could be debt free in 12months, just sounds more appealing than living here.
I want to go on holidays with the family and do nice things  a fresh start will give me that i dont however want To be skimping every penny spare  into this house.

So sell the house yourself then?  What makes you think the bank will do a better job of selling it than you?  Have you had a valuation?

You will still need to live within a budget though and your income is not going to magically increase so holidays may still not be doable.  How did you get to be £40k in debt?  What is the rent of the new builds you are considering?  Will this money your parents will be giving you for a deposit a gift or another loan? 

Smiddy20

Hi new build rental will work out the same  as now  as we would get more universal credit.

Mortgage rate we are on is 1.34  more than likely this will go up.
Tried selling self for 6months
if i do this again  my credit will be trashed as i will start to defeault on debts  as from next month.
its onli due to payments holiday i have not defaulted yet.
In a normal house id 💯 agree  dmp is the best option.
There is so much to do  essential work to the house and cant tel ya how bad the neighbours are
there literally no privacy even in my own home.