Moving house to clear mortgage but not debts

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24

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  • System
    System Posts: 178,094 Community Admin
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    Don't sell the house, unless you intend to buy another, albeit cheaper one.
  • desperate_housewife
    desperate_housewife Posts: 25 Forumite
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    Exactly.....we have enough equity to buy a suitable smaller house which would be great. As you say we would then have our money that would normally be paid to them to make increased payments. However surely they would need to know we had moved for correspondence and annual assessment for dmp? Really don!!!8217;t want the stress of making things more difficult.....it!!!8217;s the concept I need to know is ok with everyone....I need a fresh start without any worries....
    :wave: :rotfl: JRP
  • desperate_housewife
    desperate_housewife Posts: 25 Forumite
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    andydownes123 wrote: »
    Don't sell the house, unless you intend to buy another, albeit cheaper one.

    If we moved we would be mortgage free though....extra for dmp?
    :wave: :rotfl: JRP
  • Silver_Queen
    Silver_Queen Posts: 824 Forumite
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    Can you afford buy an entire new house without a mortgage with the equity from your current house?
    Debt Totals July 2019::
    [STRIKE]£350 Natwest Credit Card [/STRIKE]/ ]Now £0 (paid off and closed 04/2017) £15,500 postgrad loan from parents/ Now £7,000 £5,000 sister loan/ Now £0[STRIKE]£500 train ticket loan from parents [/STRIKE]/ Now £0 (paid off 16/02/18)[STRIKE]£2,000 Overdraft[/STRIKE] Now £0 (paid off 09/03/18) £1,967.83 Barclays 0% card Now £0     Total £7,000
  • desperate_housewife
    desperate_housewife Posts: 25 Forumite
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    Silver_Queen wrote: »
    Can you afford buy an entire new house without a mortgage with the equity from your current house?

    Fortunately we can....smaller of course
    :wave: :rotfl: JRP
  • determined_new_ms
    determined_new_ms Posts: 7,825 Forumite
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    I can't see any downside to this if you really have that much equity. I've gone from bigger to smaller properties then a slightly bigger one. Smaller properties are great. The smaller you go the less junk you acquire and the less time you spend cleaning it! Went from a 3 storey town house to a 2 bed flat several years ago. It was so liberating! I could clean the whole flat in 1 1/2 hours :) bills were less.

    we toy with selling our 2 bed semi for a 2 bed flat in a slightly cheaper area near us. If the right property comes up we'd go for it and leave ourselves with around £50k left on the mortgage ;)

    Obviously it's a lifestyle choice but if it were my choice I would take it in a blink of an eye :D
    DF as at 30/12/16
    Womblng 2020:
    NSD Jan 2/18 YTD: 2
  • desperate_housewife
    desperate_housewife Posts: 25 Forumite
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    determined_new_ms wrote: »
    I can't see any downside to this if you really have that much equity. I've gone from bigger to smaller properties then a slightly bigger one. Smaller properties are great. The smaller you go the less junk you acquire and the less time you spend cleaning it! Went from a 3 storey town house to a 2 bed flat several years ago. It was so liberating! I could clean the whole flat in 1 1/2 hours :) bills were less.

    we toy with selling our 2 bed semi for a 2 bed flat in a slightly cheaper area near us. If the right property comes up we'd go for it and leave ourselves with around £50k left on the mortgage ;)

    Obviously it's a lifestyle choice but if it were my choice I would take it in a blink of an eye :D


    It sounds ideal really.....it’s the legal side of it that troubles me.....I want it done right so I don’t upset the creditors. The smaller house without a mortgage is perfect. Just not enough equity to pay the debts too.....I don’t want to get too excited and it doesn’t work out....
    :wave: :rotfl: JRP
  • determined_new_ms
    determined_new_ms Posts: 7,825 Forumite
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    If I'm honest I think you're over thinking this. You don't need to tell your creditors the ins and outs of your life. You owe them money you are paying back at an agreed rate, you haven't made a deal with the devil.

    If it's what you want, have thought about it and think the pros out weigh the cons then go for it
    DF as at 30/12/16
    Womblng 2020:
    NSD Jan 2/18 YTD: 2
  • desperate_housewife
    desperate_housewife Posts: 25 Forumite
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    determined_new_ms wrote: »
    If I'm honest I think you're over thinking this. You don't need to tell your creditors the ins and outs of your life. You owe them money you are paying back at an agreed rate, you haven't made a deal with the devil.

    If it's what you want, have thought about it and think the pros out weigh the cons then go for it

    You are probably right....I just need to sleep at night knowing we have done the ‘right’ thing.....I feel everything is on hold and money not our own (our own faults for one reason or another).....
    :wave: :rotfl: JRP
  • Chocolate_Teapot
    Chocolate_Teapot Posts: 7 Forumite
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    Have you contacted the debt management plan company? We did this last year, sold our home, paid off our debt management plan and we are now currently renting. When we contacted stepchange before putting our house up for sale they told us any equity from the sale of the house HAD to go to the creditors first. Just a thought to double check with them first.
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