Mortgage going UP, Have to Sell

reidy100_2

slipp_digby wrote: »

a hint of troll here me thinks too

I dont think so, Yes I was in the same position just under 2 years ago, I changed mortgages. That gave me 2 more years in our house. The selling price has gone down bearing in mind it needs some things doing to it, and offers for similar houses have been£20-25k less than asking price,I have therefore reduced the estimated equity figure accordingly.

I dont think you have helped my genuine thread here one iota by your claim, Shame there is not a 2 a fingered icon for people who havnt helped at all as im sure you would have quite a collection.

To the other people who have added their advice I thank you all. lots to take on, keep it coming

Lotus-eater

You've got a house you can't afford, because you borrowed too much.
There are loads of threads on here re why selling to rent back is a bad idea.

Not sure what you need to ask. Same as on your last thread, you are being told to sell, not sell to rent back. You must know its too good to be true. I think you've had some great advice already.

WTF?_2

reidy100 wrote: »

Hi, Trying keep this as short as possible.

Basicly, 2 years ago got a self assesed mortgage, fixed rate coming to an end March, missed a few payments, Mortgage will go up £260 a month, Mort Consultant tried to get us a deal, no one will touch us, even current mortgage company wont give us a deal.

So I think we have to sell and rent a house for a while (have about £100,000 equity in property unless we get repossessed) However my missus wants us to consider Sell to Rent Back, I dont think this is a good idea personally,(she says they will even do the house up for us, old central heating, wiring etc??) Too good to be true??

Anyways If we have to sell, I cant afford the money for the Hip up front, I want to sell multiple agency, I know I can get a hip myself and supply this to the agents (£399inc vat)

Anyways the reason Im writing this is I hope there are some people on here who can guide me through the next couple of months as Im really worried sick about whats gonna happen
Advice ,Sympathy, Ideas suggestions and questions well welcome

Reidy

Don't 'sell to rent back' - companies that do this are little more than predators who take advantage of people desperate to sell.

You should put the house on the market with an agent - some these days will pay for the HIP up front and put it on their fees. If not, I can't believe you can't find a couple of hundred quid somewhere to get one done.

Put it on the market at at least 5% below 'market price' to generate interest and be prepared to see it go for 10% below the official valuation. You have neither the time nor the money to chase the market down, you have to beat it.

Make sure the house is immaculately presented, House Doctor style ... Remember that this is not merely about turning a profit - it's about ditching something expensive that you can't afford before you get into real financial trouble.


Hopefully pretty shortly you'll be sitting on maybe 90k cash in the bank and this trouble and stress will all be a thing of the past. Also you can probably find a nice place to rent too. At least you'll have learned a valuable financial lesson about not borrowing more than you can afford to pay back. Consider it a very lucky escape but don't delay.

PasturesNew

All of what !!!!!!? said plus, can you get in some lodgers while you're waiting to sell?

One lodger would cover the increased amount

otter1_2

If you go multiple agency then your house will show up a number of times on Rightmove. Potential buyers can smell a whiff of desperation when they see that and will lower their offers accordingly. In this internet age, going multiple agency is becoming increasingly pointless.

Your property needs to be presented well and offered at the right price. If you get both of those right, you've given yourself the best chance of selling quickly.

Gorgeous_George

Why not stick a sign in the window tonight "HOUSE FOR SALE - RING 07***"? Follow this up with a sign that you can make yourself to plant in the garden.

Get a valuation so that you know how much to hope for and pitch it at least 5% lower to encourage offers.

The bottom line is that if you cannot move to a mortgage that you can afford then no business will want you as a tenant for even less money. Get out quick. That's quick as in, don't waste any time getting the house on the market and pitch it at FTBers if possible. No chain should mean less chance of the sale falling through. You need to get to EXCHANGE before the buyer sees similar houses cheaper.

If you are a troll, at least this thread can help some of the lurkers who may well be in your position.

Don't let the wife win. She probably just wants to save face in front of family and neighbours. Her plan will end in disaster.

GG

reidy100_2

I know in my mind that selling is the only option, and has been confirmed on here and that may even be for the better. I have a minor problem and that is the wife is well attached to the house, and doesnt want to sell and is understandably emotional when I mention selling. I dont want to give the predators my equity. I feel we will be better off financialy AND emotionaly if we sell, paying off small outstanding debts, becoming debt free, not sure if wifey will come round to my way of thinking, and that she will see me as being responsible for losing her home.

Top advice people, I shall ask her to read my thread, and encourage her to perhaps post her worries on here too!!

I know im not the first to be in this position or will be the last, but if other people in a similar position read this hopefully it will help

SquatNow

Sell it as fast as you can, even if that means leaving with 70k cash rather than 100k.

Having 70k cash is better than having 100k equity.

CHR15

reidy100 wrote: »

I have a minor problem and that is the wife is well attached to the house, and doesnt want to sell and is understandably emotional when I mention selling.

, not sure if wifey will come round to my way of thinking, and that she will see me as being responsible for losing her home.

Leave her in it and do a runner before she drags you into complete financial ruin/ bankrupty (at which point they normally leave the bloke anyway!!)

Nationalist

I agree with the sell-to-rent majority. You can generally rent a better property for the same money as a mortgage would buy. And sitting pretty debt-free with £100,000 in a high interest bank account is a nice situation to be in, in a falling market.