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House and Debt or Money and Rent?
zharp
Posts: 20 Forumite
Me and my husband are about to divorce, we have a house in joint names in which he lives and i rent with my 2 children. I have been given the option of having the house and paying him some of the equity or giving him the house and me getting some of the equity. The problem is if i have the house my mortgage will be cheaper than the rent (by £150 pm) but i have debt of £17000 which i would have to pay off making it a struggle but i would own my own house. The other option is to take the money (£20000) pay off all debts and save for a house of my own which could take years plus all the costs. I don't know what to do???? 
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Comments
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Does that mean to keep the house you'd have to pay OH the £20K but have the house and £17k of debt? So £37k of debt, before the mortgage?
How much is the house worth and mortgaged for, is another factor.
Happy moneysaving all.0 -
Yes £20000 added to the current mortgage and £17000 cc. The house is worth £125000 and mortgage of £70,000.0
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I split from my partner years ago and due to him not paying maintenance I left the property and signed over the mortgage. I regret that decision a lot and wish that I had kept the property but I took the easy option as I knew it would have been a lean couple of years paying the mortgage and I thought I could always buy again one day.
10 years later I still haven't bought and am struggling to get a deposit together.
Only you know how hard it will be to pay the mortgage but it could be the best thing you ever did.
You would need to take into account that interest rates can only rise so future costs could be higher but hopefully your ex pays you maintenance and this could assist.
As you are already renting you must have an idea of what it is like. I was quite lucky in finding secure, affordable rentals but for a lot of people it is the lack of security of tenure that makes them want their own property.0 -
Thanks, this is what i'm thinking but with these uncertain times and my job being a bit uncertain i was thinking that having money in the bank would be best.0
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If you take the house you would owe 90K on a house currently worth 125K. Then you would have your debts of 17K on top.
The mortgage is cheaper than the rent you currently pay and the amount you save could be put towards paying off your debt. You could also go to the debt free wannabe board and take advice from the wise people on there. They could look at your budget and advise all kinds of ways to cut back and make more available funds so you can clear the debt quicker.
If you take 20K you could clear your debt but you would only have 3K in savings left. Not enough for a deposit on even a small property. Also what size mortgage could you get on your income? I think this route would leave you in a difficult position.
I think you would be wise to take the house.The best day of your life is the one on which you decide your life is your own, no apologies or excuses. No one to lean on, rely on or blame. The gift is yours - it is an amazing journey - and you alone are responsible for the quality of it. This is the day your life really begins.0 -
not sure if you receive any help with your rent currently from housing benefit, but this will stop when you receive the £17k...if you didn't go for the house option0
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Would the lender agree to you taking on the mortgage on your own?0
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Is this an option that he has given you?
How about you move back into the house and pay the mortgage and he gets a %-age of the equity when youngest child leaves full time education.
Don't forget he will need to pay you 20% of his wages for child maintenance...0 -
I split from my partner years ago and due to him not paying maintenance I left the property and signed over the mortgage. I regret that decision a lot and wish that I had kept the property but I took the easy option as I knew it would have been a lean couple of years paying the mortgage and I thought I could always buy again one day.
10 years later I still haven't bought and am struggling to get a deposit together.
I did the same....It is a huge regret of mine that I did not stand my ground with my ex and keep the house. I would have been in a much better position now financially. But hey, hindsight is a wonderful thing, and at the time it seemed the right thing to do.
I would try and keep the house if you can (only my opinion), but only you can decide what is best and right for you.
HP xxDEBT FREE DATE: 05/02/2015!Those things in life that we find the hardest to do, are the things we are the most thankful we did.0 -
Thanks everyone, i have decided to get the house, i think like you all said in the long run i will be better off!0
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