Should I sell house to start again?

BabyStepper

Getting solvent and paying off the debt would be a good start, whether or not you decide to sell.

Good point about your mortgage and retirement, how old are you? I didn't think anyone had interest only mortgages anymore, they caused a lot of trouble back in the day. 

Annie161

Hello, and thankyou all for your replies. I am 50 and have already asked to increase my mortgage but they said no.
I am with West Bromwich and on my salary self employed I would not even get the £140k now. I think my limit would be about £80k. When I spoke to a mortgage broker recently he said the debts are an issue and he advised just trying to pay things down and if there was no penalty to just pay as much to the mortgage debt as I could just to get it down so if I did move in a few years it would be something. The problem is with the debts I do not have anything left. If I do try and do more work I worry that I am going to make myself more unwell and to be honest it is all getting me down as I dont have much of a life now as it is!

sharpe106

Even with super budgeting on your income you have no chance of paying off the mortgage loan in 11 years and the credit cards so the house is going to have to go then anyway. I am assuming the house was your family home when you were married and your child was at home and that you are now living alone/child staying occasionally.  So I would plan on downsizing in the not to distant future, clearing my debts and restarting. Then in 11 years be debt free have a house rather then having to sell then and look for something.  

clairebeth

It is a perfectly reasonable idea to downsize, you will save on heating and council tax by living somewhere smaller too. 

However, that's not going to happen overnight, you need lockdown to ease a bit more, and then the time it takes to sell your property and buy another. 

It is also not a solution to your spending. You must focus on paying down your debts now (a lodger sounds like the most promising idea), and getting your finances in order before you move. Maybe give yourself a goal of two years? That way, you'll have a greater chance of getting the mortgage you want and also will use up less of your equity covering consumer debt.  Most importantly, it means you won't spiral into debt again. 

Best of luck!

TheAble

I'd just be a bit careful. It all sounds nice and easy but until you've got your spending under control it could be a downward spiral. 
Is there no way you can increase your income? How about becoming employed rather than self-employed? You'd then be able to ditch the accountant and work insurance;might  beable to reduce your petrol bill and so on. Maybe something to consider. 

Annie161

Thank you again for your responses, all of you...
Yes, I should probably earn more. I am not that good at running a business but have kind of ticked over and it has suited me I suppose. I worry if I could do a full time job now as have some health issues.. I really dont know if I could make it through a 9-5 day.
I did go looking at a different area near Norfolk at the weekend and obviously house prices are a lot cheaper but it worries me that I could become too isolated. I live in a mid terrace and most are older couples or families. I seem to be affected by noise and am getting irritated that I cant seem to sit in my garden for 10 minutes without kids screaming or parties or bonfires etc. Maybe I am just becoming older and miserable!
I have no family around me just my son who is 20 and will be here till uni starts back.  The worst thing with my budget is the food...my son eats a lot at 6ft 5 and I seem to be forever in the supermarket. 
I still feel though that I have gone too far down the line now with the interest only mortgage and if I put it off now will it be worse in years to come when I will have to move as have no other option.
I have to say the thought of moving is quite a worry. I did have a good clear out whilst in lockdown but realise I only touched the surface. I am just not sure what to do and I am not sleeping well and feeling very anxious about it all at the moment.

RAS

Annie

Have you had an honest conversation with your son about the financial situation?

Because your SOA doesn't recognise that there are two adults in the house, which obviously affects your budget massively. You simply don't have enough to cover your debts. And it may affect the lodging situation.

Regarding your son, can you identify jointly meals that will fill him up and are cheap?  Can you agree how to handle fridge raiding? Otherwise you will be worse-off with him at home.

Maybe also you need to think about supplementary income that does not require physical work and is less tiring? And seriously think about a lodger in term time? You need the extra income, pronto.

gwynlas

You need to tackle your debts to try and bring them down, have you looked at what you can sell?
What are your sons plans after university if he is living with you then needs to make realistic contribution? He might not be happy to move with you.
Given your age and health worries it might be best if you bought a place outright but with such a large deposit then a small mortgage should be possible.
Given you are self employed could you just move anywhere and pick up work? What pension arrangements do you have?
Your friend obviously knows you better than total strangers on a forum, do they have any suggestions on how you might move forward/

Karonher

If your condition got worse would it be harder to go through a move? If you are going to have to move it may be best to bite the bullet and do it in the near future.

mallets10

 Maybe you need a longer term plan. Look at each of your debts and work out how long it will take you to pay them down with what you have available, rather than putting further pressure on yourself - a repayment calculator will be able to do this and then you will be able to set yourself a realistic goal. Given your situation, I suspect this is around 5 years, maybe a little longer, provided you stop adding to the debt. The positive factor is that you are just in a position to service the debt. if you can overpay on occasion, then do it but focus on sustainable repayment.

Like you say, you are unlikely to be able to get a mortgage due to age and outstanding dong debt so it’s probably worth holding off. Focus on the knowledge that you do have equity in your home, so If your long term plan is to Pay off the debt and eventually move somewhere less expensive, it probably won’t make much difference if you do that now or in 5 or 10 years, provided you do it before your interest only mortgage term ends.