Need to downsize

mariperk

Hi, im in such a pickle. I was barely making ends meet when my dog got a serious lifelong illness and the vets bills have put me in a serious debt spiral I don't see an end to. I decided that downsizing my home and releasing some equity plus hopefully lowering my monthly mortgage payments would be the best idea. However, after putting my house on the market, I have now realised that, because I am not currently working (due to my daughter's ill health) I MAY be allowed to port my current mortgage across to a new property, no guarantees, but I will NOT be able to release any equity, or borrow any more money. I have committed to the estate agent and won't be able to pay them as I cant release any equity. I have lent money off my brother in order to get my house market ready and I have no way of paying him back. PLUS in order now for the move to alleviate any of my financial problems, I am limited to buying a property for between £75k and £95k, and where i live the options aren't great. I feel so stupid for not fully checking all the facts beforehand, but now I feel completely stuck, confused and worried about the mess I am in. For added context, I am a single parent, I am autistic and i struggle with my mental health. Any advice or ideas on how I could proceed would be appreciated.

Afourteen

I think you need to check your contract with the estate agent - you need to read the T&C's regarding taking your property off the market before the sale period has ended. Most contracts are no sale, no fee. Certainly once the contracted period has completed then taking your property off the market is (normally) no fee.

fatbelly

It doesn't sound like proceeding with the house sale is a sensible idea. If you are up to date with the mortgage, no-one is going to force you out.

Mortgage arrears is considered priority debt, as is council tax arrears and arrears of electricity/gas. Other debts, like vet bills, are non-priority. Family debts could be either, depending on the attitude of the lender ( you are the borrower).

Anyway, you have a debt problem, and the best place for advice is not this board but debt-free wannabe. I suggest that you head over there.

Misslayed

Moving to Debt Free Wannabe for more help.

ArtyJ931

In my experience porting a mortgage is effectively applying for a new mortgage with all the checks so you are wise not to do that if they would not give you a new mortgage.

Don't panic. There is lots of support and advice on these boards on how to manage the debts - it is worth contacting one of the charities eg. stepchange if organising it yourself is going to prove to difficult. I would start off reading the stickies on the board.

Then once you have stopped panicking you can start to look at your debts and get advice on how to proceed. You could post up a statement of affairs if you would like advice and ideas on how to reduce spending or deal with your current debts. Everyone here is kind and very knowledgeable.

It will be ok.

gwynlas

It is certainly not the time to be moving with EA and legal fees moving costs etc.

You have a home that is hopefully secure and you can stay there as long as you can pay the mortgage, you could even move to interest only for a while if you really needed to.

Others will be along to give you further advice regarding checking your budget, possible benefits etc.

ManyWays

If you can complete a Statement Of Affairs (SOA, see https://www.stoozing.com/soa.php for how to do this ) we can see a good overview of your situation. Please include the lender names.

mariperk

Thank you for all your responses. I'm a bit overwhelmed by everything at the moment and don't even know how to get started. It all seems insurmountable.

itsthelittlethings

Don't panic. There is always an answer. Can you do an SOA? Google lemonfool SOA and format it for MSE. This will help people to see exactly what is going on and offer the best advice. There's always a way forward and the worry is the worst part.

mariperk

Panic is default setting, sadly, ha ha.

I've already completed Martyn Lewis's budget spreadsheet, but i don't know if that would be the same information?

itsthelittlethings

https://forums.moneysavingexpert.com/discussion/comment/81981887#Comment_81981887

I don't think that's the same thing.