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no money, no deposit, no equity any advice please

(43 Posts)
tryharder100 Thu 02-Jul-15 19:45:10

Hi,

Really need some advice as have no idea what we are going to do. We bought our house in 2007 when prices were very high. Within 6 months we had lost 10,000 as market crashed.

didnt stress too much as house was fine longterm, 2 bed terrace hpuse and jyst me, dh and ds. Fast forward 8 years we now desperately need to move. Have ds 8 and dd 3 and they have to share small room. We have outgrown this house, everywhere is so cluttered and have no room for anything and its really getting me down.

we have no equity, no spare money at all to save a deposit of any size and i am so worried about what to do. Credit rating is poor too so not hopeful on getting a mortgage if we ever managed to save a deposit.

any advice is really appreciated

softhedgehog Thu 02-Jul-15 19:57:27

You don't have many options, off the top of my head you could:

- stay and put up with it
- sell and walk away (presumably with nothing from the sale) and rent
- sell and walk away and try to get social housing.

McDreamyMcNastyMcHottie Thu 02-Jul-15 19:58:35

Not sure what you're asking? Rent it out and rent elsewhere?

tryharder100 Thu 02-Jul-15 20:04:56

Just trying to figure out options.

kids are getting bigger and dont want them to have to share a room for much longer.

i just feel scared as dont want to give mortgage up as dont think will ever get back on property ladder. Wouldnt be able to rent our house out as wouldnt have spare money for any repairs etc plus wouldn't we need to change mortgage type to buy to let??

Thanks for replies

addictedtosugar Thu 02-Jul-15 20:13:20

Could the grown ups move into the second bedroom, and then divide (plasterboard, or careful arrangement of wardrobe's \ bookcases)?

Could you actually afford a bigger mortgage for a bigger house?

How much would it cost to rent a 3 bed? More or less than your mortgage? And if you sold, could you actually clear the mortgage?'Or are you in negative equity?

tryharder100 Thu 02-Jul-15 20:20:49

We have around 90,000 left to pay on the mortgage and if sold would get around £85,000. House purchased for 99,950. We could find a 3 bed for 90,000 so wouldn't need a bigger mortgage just a deposit.

i have thought about moving them to bigger room and splitting but not sure it would work due to shape of the room but def something to look into.

Mortgage is around £450 a month and rent on 3 bed would be around 550 so wouldn't be able to move until November if went down this route as saving this amount on childcare costs

LlamaLover Thu 02-Jul-15 20:23:17

Sympathies.

If I were you I would ruthlessly declutter (you may make a few quid too hopefully) and consider swapping adults to small bedroom and kids share big bedroom. Or kids change to bunk beds to give more floor space. Try to see where you could squeeze more storage in - board out the loft, add shelves to alcoves, add a shed, that sort of thing.

But honestly, kids sharing is fine - needs must and all that. Sounds like to need breathing room.

McDreamyMcNastyMcHottie Thu 02-Jul-15 20:23:36

I don't really think you have any options based on what you have said.

You can't/don't want to sell.
You can't/don't want to rent it out.
No spare money to save for a deposit/renovations.
Poor credit rating so wouldn't be likely to get a mortgage.

It's a difficult one and a trap we were almost in but got out of by renting our house out. Sorry not to be more positive.

sanfairyanne Thu 02-Jul-15 20:28:50

whats the loft like? sounds like you have to make the most of what you have for now sad

tryharder100 Thu 02-Jul-15 20:36:25

The loft has no floor so not very useful. It does sound like we are stuck then. Was just excited to be buying a house at 21 so didn't look more into it, learnr the hard way. X

NoArmaniNoPunani Thu 02-Jul-15 20:37:08

I think your best bet is to start over paying the mortgage. Paying £100 per month extra would get you out of negative equity fairly quickly and you would gradually get enough equity for that to be your deposit/moving costs on a new place. You'll probably improve your credit rating too. It won't be a quick fix but seems the only way to get there.

throwingpebbles Thu 02-Jul-15 20:37:09

I don't think there are many options really, but I do sympathise!
You could stay put and look into extending/ reorganising the house?
You could investigate renting it out and you rent somewhere else
You could sell it and just accept you are best of renting for now

Would extending/ reorganising be an option? And at the same time start overpaying on the mortgage/beginning to build up some savings?

Have you had the house recently valued? They are currently rising all time round where Iive (South Coast)

MargaretRiver Thu 02-Jul-15 20:43:01

Would a loft conversion be something you could save towards?
Especially when your childcare costs go down?

sanfairyanne Thu 02-Jul-15 20:44:06

its quite easy to put boards in an attic space. you could even think of doing it up as a proper room but in the meantime it could be a better storage area or even an office or play area type space

tryharder100 Thu 02-Jul-15 20:46:00

Extending not an option as mid terrace, think need to declutter and sort house out then reevaluate and maybe get house valued. We have a few credit cards, instead of over paying mortgage would it be better to pay these?

Really appreciate replies

throwingpebbles Thu 02-Jul-15 20:49:39

Could you put boards down in lift, and loft hatch with ladder attached. We did this and it makes the loft space a really useful storage space even for stuff we use fairly frequently. Can't have cost more than a couple of hundred pounds in total

funchum8am Thu 02-Jul-15 21:01:49

Definitely get it valued, so you know what you're up against.

We bought in 2008, were in negative equity for a good while afterwards, but ours was recently valued at more than we paid. You never know.

tryharder100 Thu 02-Jul-15 21:09:11

I have had a look at similar properties in the area to get an idea of value but once house is straight i will def get a valuation done.

I am going to prioritise getting house decluttered then take it from there. Thank you everyone for advice.

Eminado Thu 02-Jul-15 21:12:00

Good luck OP!!!

MrsWhirling Thu 02-Jul-15 21:18:27

It's difficult but how about?
- a loft conversion
- an out house in the garden for your stuff
- rent and rent elsewhere
Good luck whatever you do x

DorisLessingsCat Thu 02-Jul-15 22:30:53

You need to pay off your credit cards and then start overpaying your mortgage.

Really, you don't have any other choices at this stage. Moving is not an option

Are you good at budgeting? Is your income likely to go up? Can you remortgage on a better interest rate?

What's wrong with the kids sharing a bedroom for another 2-3 years?

sexnamechange Thu 02-Jul-15 23:00:58

I don't see why you can't have an extension. We live in a mid-terrace and have one.

sanfairyanne Thu 02-Jul-15 23:21:54

they probably cant afford an extension i'd have thought?

addictedtosugar Fri 03-Jul-15 09:03:52

Yes, pay of credit cards before overpaying on mortgage!

Momzilla82 Fri 03-Jul-15 09:15:50

Long shot- any reception rooms downstairs you could repurpose into a bedroom?

You and DH sleep on a sofa bed in the lounge.

None of these options are good- but realistically with kids of different genders at some point they will need their own rooms. Think you've got a couple of years yet though. Is there any way of getting more hours, second job? Or any cuts to expenditure you could make? Hop over to credit crunch monthly topics - lots of support there if need to cost cut.

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