thinking about selling to buy cheaper

melie3

hi all,
just a thing ive been thinking about for a while. my hub not really keen, just thought i would run it past all. been living here for 12 yrs. 2 bed terraced house very small. now have 3 children (all girls) sharing one bedroom. it works i guess though just. ive at the moment got an 80k mortgage paying off the 2k arrears for 6 months, and 27k of unsecured debt which we have been struggling with(was with CCCS but as arrears on mort are now just paying £1 each). well currently, there are several similar houses near by which are up for sale at 160k. im tempted to sell, pay off my unsecured debts, try to buy something run down cheaper (unlikely here at the moment). maybe go into rented temp?
if i sold up and didnt buy anything straight away, would i have to reapply for a mortgage? ive got the one account at the moment. i am interested in buying at auction, not sure if peeing in wind lol(watching to much homes under the hammer perhaps!!)
advice would be great ta
mel

peb

HIya. You need to sit down and do some serious figurework.

What is your porperty likely to achieve?

Less

Estate Agents costs (do barter!)
Home Information Pack
Solicitors Costs and disbursements
Mortgage - get a "Redemptoin Statement" to make sure you have all the fees etc, it is harder with a one account

then rental.......

again agents fees
deposit
will you have a reference problem?

If you are looking to rent then buy don't forget you will have to take out a six month tenancy.

You would need to reapply for your mortgage in any event but your product may be portable - so if you completed a purchase simultaneously or within, say three months, you may get a refund on the redemption penalty. (see panda paws thread for problems on this)

So far as auctions are concerned in your circumstances leave well alone. They are fine for cash buyers but otherwise you would have to have your mortgage in place prior to bidding and you must ensure that your solicitor checks the title prior to the auction. A lot of properties are put in auction as they are unmortgagable due to title defects.


Unless I have missed it I cannot see what you think you would get for your current house so cannot comment on your figures.... I would however say you would have problems getting a new mortgage if you currently have arrears.

keep posting

PS those property programmes have me throwing things at the tv as they are so unrealistic!

melie3

thanks for that advise, we bought this house as FTB so didnt know that estate agents charge to sell deerrrr lol. i did see a few months ago that tesco can sell your house for £199, and seems just to go on the usual selling websites. the houses which are for sale in my area are same virtually as mine, although mine boasts a bigger kitchen which has been fitted last yr due to a flood from washing machine. without having it valued im sure mine could fetch 160k if someone was willing to pay that of course (i paid 33k for it 12 yrs ago) renting would be a few hundred p/m more than my mortgage.
its really only wanting to move as we have outgrown it, we can manage though, its a roof i guess. bought before marriage and then 3 little ankle biters later...but have made so many mistakes young and stupid, obviously wouldnt be able to get another mortgage for more and wouldnt anyway couldnt afford it. im thinking of building a conservatory thing on back of house for 1k when my arrears on mort paid, with help from dad to give us some more room.