is 85% a good deal?

emmaroids

thanks
we have fulled in the application for the perfect house and the bloke from the buy and rent back is on his way to see us so we have 4 options thus....

1/ sell to him and rent back.
2/ sell to him for quick cash and rent this other house (depends how much he offers)
3/ move into rented and go bankrupt.
4/ try and get a mortgage break (seeing manager on Friday) sell this house and move into rented.

shal post my thoughts later.

cupid_s

If they will offer you 85% of the value, I am sure there will be people who will offer you 90% plus for a quick sale, and there are always houses being made available to rent.

The company you mention may have a couple of satisfied customers, but they may also have unhappy customers

gallygirl

Bankruptcy is not a 'quick fix' - it takes time and even if you do go bankrupt you will find your creditors will still chase you for debts. Also, as others have said, it has a long term impact on your credit rating, and even insurance companies whack up premiums as a resort.

Why not pop over to the Debt Free Board, list your Statement of Affairs (SOA, see the sticky at the top of the board) and see what they can suggest to help you.

Good luck.

Dithering_Dad

emmaroids wrote: »

but isn't BR a quick fix? as the houses that i may want to rent may be gone by the time i have sold my house.

and going BR as appose to selling then renting seems ok cos with all my equity tied up i wont be losing any capital.
if i did try to switch to interest only should i tell the bank my reason or will that jeopardies my chances?

crikey theres a lot to take in lol.

i appreciate all comments.

Emma, do you not think that you're rushing from one 'quick fix' to the next (I'm assuming the secured loan was to 'consolidate all your loans into one single monthly payment') and each time you go down the quick-fix route, you end up a little bit more worse off?

You seem in an awful rush to dump your house and get a rental property 'before it's gone'. I'd imagine you were in a similar rush to get your current house 'before it's gone'.

Calm down, put your mortgage onto interest only and then take a 'slow but permanent fix' route of sorting out your finances and living within your means.

Stop looking at the greener grass in the other fields and instead make your own field greener by a bit of hard work with the DFWers.

emmaroids

ok if i put my mortgage on interest only for a year for example, in one year my payments will be higher then they are now?
who's to say i will have a better job by then, i may be worse of then i am now but that nice house will be gone?

i see the bank manager tomorrow and will post what he says.

eslick

Dithering_Dad wrote: »

Calm down, put your mortgage onto interest only and then take a 'slow but permanent fix' route of sorting out your finances and living within your means.

Stop looking at the greener grass in the other fields and instead make your own field greener by a bit of hard work with the DFWers.

Have to agree, moving to a interest only mortgage for 100K would cost less than £400 which would be cheaper than renting, there is another thread where someone has done the same and their payments are this range

http://forums.moneysavingexpert.com/showthread.html?t=836263

If I was you I would try and remortgage and move to interest only and keep your house until you either can sell it or have your circumstances improve. I know what I would do. Good luck.

emmaroids

eslick wrote: »

Have to agree, moving to a interest only mortgage for 100K would cost less than £400 which would be cheaper than renting,

but unless i set up some sort of savings to run along side this i will have to go back to repayments of the capital soon enough and they will be higher then they are now.

i have to put down a deposit with the rental application in order to secure the house tomorrow.
now my head is mashed as to what to do for the best.

it brought my financial problems crashing home when my son (6) asked if we could go on holiday this year it will be his first holiday.

eslick

dont know you details but the way I would look at it is the short term, use the interest only route to keep the house, when you can either take out a repayment mortgage or a saving one. If you are young enough this may be an option. Someone I worked with did this for 5 years until they could manage to start paying off and in the end money against a mortgage is your money. rent is someone elses profit.

emmaroids

eslick wrote: »

when you can either take out a repayment mortgage or a saving one. If you are young enough this may be an option.

37 .........

Dithering_Dad

I wouldn't worry too much about when you go back to a repayment mortgage - as long as you pay the interest you're not increasing your mortgage debt.

Once you get yourself sorted financially you can go back to a repayment mortgage and if needs be, just increase the term. For example, if you have 20 years on your current mortgage and go Interest Only for 5 years, once you're sorted you can remortgage to a 25yr term repayment.

In reality you'll probably find that once you change your ways financially, you'll have more disposable cash and will be able to afford to blitz the mortgage and pay it off early.

Stop 'quick fixing' and sort yourself out. From what I've read you've gone from having a house, to having a house and secured debt and soon will have no house and some unsecured debt.

The alternative, is to keep your house with an interest only mortgage, sort out your finances, repay the loans and end up with a house and no debt. It'll be tough, but I can pretty much guarantee that you'll not let yourself get into this position again!

Anywho - good luck with whatever you choose to do.