Can a Home HIP be included in BR?

roxy84

Hi, i have my property on the market at the minute but we have not had much interest and we will only be left with a minimal amount after fees (less than 5k and thats if we get the asking price), i need to go BR as i have over £50k of unsecured debt.
If i decide to go BR now rather than waiting and then get to buy my BI, can I include the price of the HIP in my BR and take the house off the market.
I already have the pack but chose to differ the payment which is £400 until the sale of the property or 10 months which ever is sooner. Or would i have to pay this £400 to the solicitors who did the pack.

Conor_3

I should imagine so as it'd be a debt you'd owe to the Estate Agent? (not up on HIPS so not sure who does it).

Having £5k in equity, unless you can secure it, you may be forced to sell.

tigerfeet2006

I would ring one of the debt charities and ask (see my signature.) Let us know what they say.

If you went BR would you still be able to pay the mortgage and also would your partner be able to buy your BI? Are there any secured loans on the property? If not then it might be worth moving to rented, hand the keys back to the mortgage company and do a voluntary repossesion. Then you don't have to deal with it all and any short fall is included in the BR.

roxy84

Thanks for that, i have given the cab a call and they say it would be a debt that would be included in my BR.

I was thinking of going the rented route and this is why we put the house on the market in the first place. We owe £156500ish on the mortgage but we also have a secured loan that is £15000ish, we had the house valued at £179950 and £175k for a quickish sale, our payments are £1100 all together a month, it is a bit of a struggle paying this now as it is about 60% of my OH net wage a month but hopefully once i give birth (due in June) i will be able to return to work.
We could rent an appropriate property (we have 2 small children) for around the £800 mark, but have had no luck at all finding anywhere. Letting/Estate Agents wont touch us because of our credit history and we also have a dog that my OH will not give up so it is very hard finding somewhere, I havent seen any suitable houses in the papers, they all seem to be new build flats around our area.

tigerfeet2006

Sorry about the situation you are in, it sounds a nightmare.

Have a read of Scarlett1974's diary thread there is some useful information on it,
http://forums.moneysavingexpert.com/showthread.html?t=596237

Best of luck with the debt charity.