Moving house to clear mortgage but not debts
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desperate_housewife
Posts: 25 Forumite
We are currently on a DMP....a long way to go but we have equity in the house. If we moved it would mean we could pay off our mortgage but sadly not enough for the debts. However this would obviously mean we had more money to pay our creditors.....I am desperate to clear the debts ASAP ....any advice please. Many thanks
:wave: :rotfl: JRP
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I would not sell your house to clear the unsecured debts. Where will you live?
How much is left on the DMP and how much are you paying monthly? Any reason you want it paid off asap?I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0 -
Hi,
Why don't you post up your SOA (Statement of Affairs) so that we can see how your monthly budget looks.
Don't forget to click on the 'format for MSE' button at the bottom of SOA
SOA CalculatorI work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job0 -
Totally agree with above in posting an soa. Are you struggling to pay mortgage payments?I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0
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Thanks for your reply. We could buy a smaller house with the equity and have no mortgage. This would still mean we had our debts though. I hate having the debt over us. Really want a fresh start and money to be our own again.:wave: :rotfl: JRP0
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Assuming you're looking to buy a smaller/cheaper home would you actually get approved on a mortgage with a DMP in place?
If you're thinking of going to rented would this actually be advisable bearing in mind the fact your then after paying off your DMP have to save for a house again and start the whole house buying process again which you'll be doing with a pretty bad credit history!
Edit- Ignore me you posted as I was typing!Those who risk nothing, Do nothing, achieve nothing, become nothingMFW #63 £0/£5000 -
OK well that is not a terrible idea. Post up an soa and we can see what you mean.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0
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Thank you....will do. I suppose what I don!!!8217;t want to do is upset the creditors by clearing a mortgage and not paying them off straight away. We are managing to pay mortgage dmp etc just want it sorted and cleared ASAP rather than hanging over us for years....:wave: :rotfl: JRP0
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enthusiasticsaver wrote: »Totally agree with above in posting an soa. Are you struggling to pay mortgage payments?
No just want to get a fresh start and clear debts ASAP:wave: :rotfl: JRP0 -
Willing2Learn wrote: »Hi,
Why don't you post up your SOA (Statement of Affairs) so that we can see how your monthly budget looks.
Don't forget to click on the 'format for MSE' button at the bottom of SOA
SOA Calculator
Will do as time allows later.....I don’t want to do something that might upset the Apple cart but the thought of clearing all the mortgage so we can have dmp completed earlier would be amazing.:wave: :rotfl: JRP0 -
Your creditors wont even know you have sold up and cleared the mortgage. You will need to clear the mortgage anyway as it is secured on the house. I am not saying it is a good idea but don't let your creditors being upset be the reason you do not do it.
What is the value of the house, What is the mortgage balance and how much will you need to buy a suitable house for you to live in are the only questions you need ask.
Presumably your thinking is that with no mortgage you will have more money available to repay the DMP faster? Without knowing figures it is difficult to ascertain if this is the case.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0
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