Housing & debt advice

KxMx

I have to ask, as a single parent on UC is it really realistic to think you can buy again in few years? Even with a little more disposable cash because your rent is being paid?
Or wishful thinking. 

1. It is often difficult to find rented property when on benefits - would your parents consider acting as a guarantor/meet the criteria for doing so? 

2. Would you even qualify for a mortgage a few years down the line as you seem to hope? 

The SOA is a good start, but they can be more where you think money is going as opposed to where it is actually going. 

Keep a spending diary for a month should shed more light on the matter. Then you can look at where cuts could be made and where best to focus the extra. Write down every penny you spend and see where it is all really going. 

It's also worth looking honestly (you don't have to post about it here) at how the loan came about, you also posted that you and daughter are struggling for space in a 2 bed and would like a small 3 bed even topping up the rent yourself. 

Are there items you could sell to free up some space? You mention nappies for daughter and nursery so I'm not sure at her age why you are struggling for space. Yes young children have lots of paraphernalia but not usually so much that you would need an extra bedroom.

Purplelady65

I think selling with a view to buying again in a few years is a big risk. You could end up priced out of the housing market and having stepped off the housing ladder find yourself unable to step back on. The only way house prices have gone for a very long time is up. Your current rent and mortgage are really low compared to average rent and mortgage costs. I know you say UC would pay the rent if you sold up but then I’m not sure how you would save up for a deposit and then be approved for a mortgage if your main source of income was from benefits? 

Could you look for higher paid work? I know this would reduce your benefits but could you get a higher paid job and more hours so it’s enough to meet the deficit on your loan payments even taking away the reduction in benefits?  

flipflopflo

Have you seen this thread?
Might be worth a try for you. 
https://forums.moneysavingexpert.com/discussion/6293906/challenge-to-make-10-a-day-september-2021-everyone-welcome#latest

fatbelly

There's no need for drastic action here. You have a reasonable soa with £300 available. You own your own place (shared) and the housing cost payment is very low.

Your only problem is that you have a non-priority loan with a high monthly payment. 

It's no problem - you just provide them with a soa showing what you can afford and pay that.

I'd have a figure of £150 in mind.

Then save what you can into a fighting fund

Singlemum2704

Tbh, selling would be the worst case scenario option - and the one I’d rather not take. 

I just wanna know what my options would be, I’m going to see how I can make some more savings and see how things look after Christmas. This isn’t a decision I’m just gonna make on a whim but thank you all for your input, you’ve really helped