What have I done?!?!?

sammiea1976

Hi All

Firstly want to say im not new to this site, have been a lurker for a long time, just never actually posted! Anyway need some advice and quick please.... heres the situation:

I have a 4 bed townhouse in Essex, house was built 4 years ago bought new at £229,000. Put on the market last year had an offer of £245,000 (was on for £249,000) but at the time i was heavily pregnant and hadnt found a property in which we liked so we couldnt accept the offer - kicking myself now obviously! Took house of market decided to stay put as baby was due. Baby now here and all was good, until I saw a house of my dreams 5 mins from my house, up for sale.
This house was up for £265,000, i sat and waited to see if there was any interest, the house then dropped its price to £249,999 - went to view it, loved it and put in a starting off offer of £242,000 - was declined, so went to £244,000 also declined, they accepted our last offer of £245,000.

The house we have now we are lucky to have no mortgage, basically it was an early inheritence from my dad but the house is in my dads name at present as currently going through a divorce (split with him nearly 5 years ago but he wouldnt agree to divorce!!) so until thats all done and dusted the house will not go into my name.

Anyway, spoke to my dad asked if he would lend me the money to buy the new house and then when i sell this house that we are in i will obvously pay him back, this would save us getting mortgages - at the beginning he said he would give us some kinda bridging loan, then he went back on his word and was telling us to hold off on buying cos of the state of the market etc, but i want this house, our townhouse is just impossible for us to live in the way its set out with 2 kids, oh and just found out we are expecting our third!!

Anyway what we have decided to do is remortgage dads house (well my dad is doing this) for £180,000 and then getting a small mortgage on the new house for £65,000 to make the total £245,000.

We have put ours on the market, been on now a month and a half and we have only had one viewing of which the woman still needed to sell her home which has been on the market since Nov!!! She didnt put in an offer anyway, have not heard back from her.

The EA keep pestering us to lower the price, it was on for £245,000 i have dropped to £235,000 and they are asking me to drop again, but i just cant, the whole point of moving was to better ourself, have a bigger home with enough bedrooms and bigger garden for kids, somewhere where we would stay til we grew old ya know. But now we have offered £245,000 and lookslike we will be lucky to get £220,000 if that for ours we will be left with a £25,000 mortgage where at the moment we are lucky enough not to have one at all.

Im so scared now that we wont sell this house and we will be paying this huge mortgage for a couple of years and it will skint us, i dont work as having recently had baby end of last year and now recently pregnant again, fella has own business and earns good money but god its gonna skint us if we cant sell this place.

I have been reading that a couple of you are in the process of exchanging, and are considering pulling out due to the recent price drops, and also requesting a drop in offer on the house you are buying - can you do this?? Sorry i cant remember the exact phrase you are using, i am useless as you can tell at all this house buying /selling stuff - alot of it goes over my head as you can prob tell, which is why i am now getting my family into debt. I am so scared, i dont know what to do for the best, the couple we are buying from are lovely and i dont wanna let them down, but i dont wanna be in debt and row with my fella and us split cos of all the stress of money worries.

Please can somebody give me some advice in what i should do.

Thanks
Sammie

granville_2

Sorry - I am not entirely clear about what you are trying to say. Is the following correct?

You basically live mortgage free in a house (purchased as part of an early inheritance) and want to buy a slightly bigger one to 'better yourself'.

Daddy won't lend you the money to buy it because of the way the housing market is looking at the moment.

However, he has re-mortgaged his house for 180K and you have taken out a mortgage for 65K to make up the purchase price of the new house at 245K.

You are having trouble selling you current mortgage free house and the EA is asking you to drop the price.

You don't work, but your 'fella' has his own business which 'earns good money'.

You are worried that the above is 'gonna skint us'.

So, you have traded absolute security (mortgage free 4 bedroom town house) and are now facing a 65K mortgage plus I guess Daddy's re-mortgage costs just to 'better yourself'?

Am I meant to be offering kind support here or saying that you sound a tad silly?

If you sell your house for say 200K you will only end up with a loan/mortgage of 45K. Surely your fella can cover this?

So what are you worrying about. You are one of the lucky ones!

Honestly!!!

sammiea1976

Yes u are correct in what you say and yes i know i am very fortunate to be living mortgage free and yes if we sell for £200,000 we will only have a £45 grand mortgage but the point im getting at is we will soon have to cover a £245,000 mortgage until ours sells which will be a big shock as we dont pay a mortgage at all now and are in a great position, but what if ours doesnt sell, what if we have to pay out for the £245,000 for a year maybe more???

Yes daddy did give me my inheritence early the same as he did my other 5 brothers and sisters, but hes telling me the whole point of the my inheritence was to live mortgage free and now im getting us into debt.

kunekune

Well, you know what to do then ... Stay put.

granville_2

Simple.

To avoid any major pain, drop your current house price to say 200K. If it is significantly cheaper than other similar properties then it should sell quickly even in the current climate.

You walk away with a tiny 45K mortgage (which you can pay off very quickly), the house of your dreams and a valuable lesson in life .

What you don't want to be doing is chasing the market down.

What's the problem? Most people would kill to be in your position. You are *incredibly* lucky.

TBeckett100

i would pull out of the dream house, thank your lucky stars you have a mortgage free home and enjoy the baby. dont neck yourself up!"

i wouldnt drop the price lower. if there are no offers coming in, there is something else wrong. offers will guage what people are prepared to pay.

by keeping your offer you are protecting the seller against a falling market, and whilst youa re dropping the price, you are doing youself out of a lot of money. if you sell tomorrow then rebid within your budget. you may find in a couple of months your house may sell and theirs may have dropped again.

KiKi

If you're a genuine poster and not a wind-up merchant, then here's my advice:

1 - You have offered £245K on the new place, but you haven't bought it yet. So you're not saddled with any mortgage. You are not in any dire position at the moment. If you can't bear the thought of a mortgage at £140 a month, then pull out of your purchase now. If you end up with a mortgage, it's because you've gone ahead with it.

2 - You will probably end up with a £25K mortgage. I appreciate you're used to having no mortgage, but £25K is nothing, given that your partner earns good money.

3 - At worst, you'll end up with a £45K mortgage. Again, comfortable if your partner earns well.


If you *genuinely* believe that a £25K or £45K mortgage will "skint" you, if you genuinely believe that it will create rows with your partner, and if you genuinely believe that you will end up splitting up (which is all rather dramatic), then withdraw your offer, don't take a mortgage out, and tell your dad to not go ahead with re-mortgaging.

It's not a dire situation at all - you have complete control.

KiKi

kazwookie

You are very very luck and TBH need as kick up the jacksey to see that.

Stay put be grateful to your father.

I wish I had what you have, want to swop and live in the real world??

Get real..........

sammiea1976

Hi

Thanks for your advice, believe me I know i am incredibly lucky to be in this position, but it still worries me about having a debt of £45,000 as little as it may be compared to some of yours debts it still seems a big debt to me when i have been living debt free for a few years - and i know the debt will be all my fault but i just want better for my family in the long run ya know and it just scares me that to get better i am now going to be in debt.

But i totally agree, suppose the only option is to drop our price and hope for a buyer and then be left with a manageable mortgage.

Thanks again.

TBeckett100

the problem with society has been "must have" whatever the cost.

sammiea1976

KiKi wrote: »

If you're a genuine poster and not a wind-up merchant, then here's my advice:

1 - You have offered £245K on the new place, but you haven't bought it yet. So you're not saddled with any mortgage. You are not in any dire position at the moment. If you can't bear the thought of a mortgage at £140 a month, then pull out of your purchase now. If you end up with a mortgage, it's because you've gone ahead with it.

2 - You will probably end up with a £25K mortgage. I appreciate you're used to having no mortgage, but £25K is nothing, given that your partner earns good money.

3 - At worst, you'll end up with a £45K mortgage. Again, comfortable if your partner earns well.


If you *genuinely* believe that a £25K or £45K mortgage will "skint" you, if you genuinely believe that it will create rows with your partner, and if you genuinely believe that you will end up splitting up (which is all rather dramatic), then withdraw your offer, don't take a mortgage out, and tell your dad to not go ahead with re-mortgaging.

It's not a dire situation at all - you have complete control.

KiKi

Hi there

No i am not a wind up merchant, just someone that needs some advce.

Here is my property: http://www.rightmove.co.uk/viewdetails-19685630.rsp?pa_n=2&tr_t=buy

I dont think a £25/£45 k mortgage will skint us but i think going from no mortgage to paying a £245 k mortgage will be hard, we can afford to pay it but things will be mega tight, and obviously it will be hard adjusting from having money to being skint cos of all our money going to bills.
When i put in the offer on our new house i thought our house would have sold quickly, last time we had an offer on the first day it going on the market by the first viewer, so me being a bit niave thought we would have an offer pretty quickly but obviously i was wrong, im just scared that we will be left with this house being empty for ages as we cant sell it.