Extra Income to clear debts 10 April 2022 at 10:43PM in Debt-free wannabe 4 replies 493 views

MarkyMark16

I am in a DMP I have the opportunity to earn extra income to pay my creditors back quicker by moving in with girlfriend and treating out my property. However, because of an help to buy loan I am prohibited from renting my house. I cannot remortgage to clear the help to buy to loan due my credit history. Any suggestions on I can round this problem?

MalMonroe

Hi, there's some info in the following link about subletting when you have a help to buy loan. There are some instances where you are allowed to let your property. If that's not for you, then you could take in a lodger while you are also living in the property.

https://www.gov.uk/guidance/how-to-sublet-your-help-to-buy-home#when-you-may-be-allowed-to-sublet-your-entire-home

You could also have a chat with one of the free debt help agencies to see if there's anything else you can do about your debt. 

I contacted Stepchange when I was having troubles, and would recommend them highly, if you haven't already been in contact with them. 

https://www.stepchange.org/  

sammyjammy

I would say don't put yourself under that kind of pressure, just take your time and pay them back at a rate that allows you to live a life.  If you rent your house out and then things go sour with the girlfriend you are in difficulties.  Financial reasons isn't a good reason to move in with someone.

MEM62

MarkyMark16 said:

I am in a DMP I have the opportunity to earn extra income to pay my creditors back quicker by moving in with girlfriend and treating out my property. However, because of an help to buy loan I am prohibited from renting my house. I cannot remortgage to clear the help to buy to loan due my credit history. Any suggestions on I can round this problem?

Have you also considered the full costs and responsibilities of being a landlord and do you understand the risks?  This is not as straightforward as you might think.    

RAS

What you really do not need is the following:

Rent out house.
Major repair needed, EH involved, so no rental income. No way to remove tenant.
No personal income (this was COVID crisis but just ill-health or redundancy would be the same)
No access to credit because of debts and income.

Happened to someone who was on here 2 years ago. No idea where they were living.