To consider selling my house and renting instead

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I've had a rough few years and I'm struggling to stay afloat financially as a single parent. Today I found out that my megalomanic boss isn't making my fixed term contract permanent, even though this was promised previously and I have worked my arse off to prove myself and had nothing but glowing feedback from my line manager.

I own my house with no mortgage but a small family loan on it that I pay back monthly. I've had a catalogue of disasters with plumbing and other house stuff in recent months that means I can't even afford to replace my only work shoes that fell apart two months ago. Since then I've been wearing a pair borrowed from my eldest that are too big for me. With necessary house repairs, a car disaster as well and the cost of living sky rocketing I've been in my overdraft for a good week before getting paid for the last few months, despite being in a professional salaried job. And now I find I'm going to be unemployed in less than 3 months.

I have no buffer or savings anymore due to afore mentioned disasters. There are no jobs in my field at the moment as due to the nature of my work they mainly come up at certain points in a year. I've been looking - just in case- since September and there have been two jobs. One I applied for and they withdrew due to covering the vacancy in house in the end. The other I applied for and heard nothing despite me always usually gaining an interview as my application is strong and I have lots of experience.

Would I be mad to sell up and rent to give me some breathing space, better job prospects than a small dead end town? I'd happily sell and relocate somewhere cheaper to buy but my daughter has to be within commuting distance of her dad and everywhere around here (south east) is so expensive to buy. Plus I'd have to pay back the family loan if I sold so that's already £50k I'm down. I have no real friends or ties where I am and we are both miserable. I love my little house but hate the town and the lack of prospects. Is it such a mad idea? In a few years my daughter will be at uni or old enough to decide where she lives irrespective of where her dad lives, so I/we could potentially relocate to a cheaper area then and still buy mortgage free with what's left, or with a better job I could get a mortgage in this area in the future. Am I mad??

Also with poor credit you will struggle to be allowed to rent anything, even if you offer 6 months cash up front.

I know- tell me about it. Ridiculous amount. Have just started putting the heating on for an hour to take the edge off in the morning this week. My bill is twice what my best friend's is and she lives in London in a similar size house and she and her husband work from home.

I have a little debt in it I'm paying off but not loads. Definitely not in credit though!

Thank you, I don't think we do but I'll look into it further. A friend is a trainee psychotherapist but he's not allowed to see friends/family.

Selling is a really bad idea. You need to get a job even if it's temporary. What about online tutoring? Or you can upload lesson plans/notes & get paid when people download them. Or jobs.royalmailgroup.com/go/Christmas-Recruitment/4479401/

OP you can access your councils household support fund to help with energy costs.

Who is your supplier?

Just some suggestions - part time nannying, babysitting, remote call centre job (flexible) , supermarkets are paying decently compared to what they used to, tutoring etc

I feel for you OP. I’m on my own too and the financial vulnerability keeps you up at night.

I say this with the best of intentions, but you need to be willing to take any half decent job to tide you over. Selling your asset to rent is a bad idea.

Personally, I would make the tough decision and move to a cheaper area. My kids and I did that and we all say it’s the best thing we did and they’re similar in ages to your daughter.

You will be amazed at how much better you will feel with a stress reduction.

I think you need debt counselling and good, expert advice about the 50k loan to make sure it's set up fairly.

I just don't think you are being honest with yourself about how much debt you're in. Your repair bills sound to be debt rather than something new that needs to be paid for. Your energy bills are so high because you're servicing debt. There is a debt on your property. Is there debt on the new car? Are there outstanding credit card debts?

I also don't think you're realistic about earning. You underrate the prospects for earning from eg supply and tutoring. In most of the south east there is a shortage. Even being a TA would bring in a steady income and leave your evenings free for tutoring. There is a desperate shortage of TAs in my area of the south east.

I can probably offer a bit of perspective OP - 1. I own my home outright 2. I am a landlord 3. I am also cash poor and in debt due to DH’s recent accident and unable to work, it can be stressful.

Speaking from a landlords perspective, I am very picky about which tenants I take on. When we have lots of applications I would go for the tenants who are the most financially stable with the highest income even if you do pass credit checks, especially due to the current economic climate. Also the rents my tenants pay me are almost double of my mortgage payment, they are essentially paying for my mortgage and more.

I also have debts like you are. I completely understand how hard it is when we are desperate for some cash. I sold my car but won’t sell my home. Just remember being cash poor is a short term thing, whereas losing your home is a long term thing.

also buying and selling a home is a lot of hassle and stress, our buying process took 10 months recently due to the lender being slow, because the interest rates were rising - I wouldn’t want to go through a house buying/selling process again due to how painful it was.

The other reason I won’t sell my home is, once I get a lump sum payment, it can be difficult to control my spending, money will disappear faster before you know it. I would rather have the struggles while I am young than when I am a lot older.

The other option is you can also rent out your home unfurnished if you are concerned about wear and tear. You can also choose your tenant and who you let to. There are good tenants out there who will look after your property, it’s not as scary as it sounds.

You maybe able to look at redundancy insurance, which will pay a percentage of your wages for a year if you are made redundant. However it may not apply to you as they won’t cover you if you are going to be made redundant in 3 months.

Okay, first of all get a smart meter installed as soon as you can. You'll be able to see where that money is going to with heating etc. I cannot understand how you are spending that much money on such a small house.

Secondly, get an appointment as quickly as you can with step change. My friend's husband works for them and he says it's absolutely fantastic what he can do(and others!) to reduce debt.

Is there something that you and your daughter could do together at the weekends or evenings which would raise a bit of money?

I think you’d be better off looking for another job. You’ve got 3 months to do it. Many businesses are desperate for employees and many are offering training.

As others have said you really should not sell. I know someone who did this and they have never got back into the ladder, they very much regret doing it. Plus if you’ve got a bad credit rating, even if you offer to pay upfront you will not get a LL willing to take you.

You certainly need to be contacting your energy supplier and getting that bill down. That can't be your usage.

How on earth is gas & electric £350 for 2 people in a 2 up 2 down?!?

Just to clarify as I feel this has been misconstrued by previous posters- I'm not intending to remain unemployed. I'll sign up to a supply agency/do tutoring/ evening work if I can get it whilst my daughter is with her dad. I thrive on routine so I couldn't not work. But equally I'm barely able to stay afloat on my current salary and having done supply previously I know it's sporadic and not enough, you get paid way below your normal salary point so it's going to be really tough with no buffer.

I think you need to make an effort to start applying for other jobs in the next few weeks so you can have something lined up when your contract ends. As others have said even a supermarket job would be some sort of income.

I’d say don’t sell. You have no control over rent charged and would pay far more than your loan repayments.
Ask person who loaned you the money for a 3 month break? Or a 50% break for 4-5 months?
Take in a lodger. Under “rent a room” it’s tax free.
Rent out your house and live in something cheaper.
Sell your house, buy something outright in a cheaper area and rent that out.

I don’t know your age but living on a single pension and paying private rent is nigh on impossible. Your investment in your house will be worthwhile in the future. And you’ll be surprised how quickly you go through equity once you’ve sold.

Renting when you're working is an option. Renting when you retire means a large proportion of your pension income will go on rent which is likely to exponentially rise over time.
Selling and down sizing ormoving to a cheaper area sound like better options especially when your daughters proximity to her father will give you a wider search area.
Renting out your property to rent another is not a great option once you've paid tax, finders fees, insurance etc you will probably be out of pocket.

Don't let your controlling ex determine where you live. You say DD hates where you live and wants to move? Just do it.
I'd sell up and move North. Somewhere within commuting distance of Manchester/Liverpool should be better for whatever specialism you teach. Somewhere like Warrington has great transport links and some of the best sixth forms in the country are in Wigan and Northwich if she is looking to study A levels.
If he wants to see her he can drive up to see her or she can catch a train.

Yes you'd be mad. Why lose an asset and pay over the odds for a roof over your head with no guarantee you can stay? Rent is money down the drain in comparison with a loan on a property you own.

You could take out a small mortgage on the house to clear debts, mend essentials and buy some shoes that fit you!

You have a couple of months to find alternative work. Make a list of your transferable skills and see if there are any industries that need them where there are more jobs on offer.

Maybe look to downsize to a flat. But hang in there. As soon as your daughter turns 18 you can legitimately sell up and move somewhere cheaper and nicer.

A friend of mine in a 2 bed gave up her room to the lodger and slept in the living room on a sofa bed. Could you do that short term and get a fill in job while you wait for a vacancy in your specialism to come up?

I don’t think selling is an good idea

Do you have a smart meter? check with your energy company what credit you have on your account and stop paying 350 a month unless you’re using that. Demand your credit back

www.rightmove.co.uk/properties/128191607#/media?channel=RES_BUY&id=media0&ref=photoCollage
This isn't a bad area and is close to motorway links.

No, she wouldn't. If she can't even get a credit card she will not find anything to rent.

That is a terrible idea.

If it is true that big falls are likely (and I have heard this and seen plenty of homes reduced in my area already) I would sell sooner rather than later, but it is your choice. Renting isnt very cheap. I think a house in need of lots of repairs isn't going to sell easily and probably for not what you think it is worth given current state of the market. It might already be too late if you think you will get a lot of equity from it.

If you ever want to own a house again, don't sell this one and rent.

There has to be another way to improve your cash flow. Second job? Pet sitting? Weekend/evening child minding for shift workers?

The repair bills are paid for- wiped out my savings and took me into my overdraft. Hence why I'm struggling since. Debt on energy is low like about three hundred quid down from £2000 after they swapped my supplier when they went bust and then said a had debt from them which hadn't been mentioned previously.

The 50k loan is very fair, I'm very grateful my mum did this for me before she lost her faculties as I'd never have been able to buy without it. It's no interest just paying back the loan at a reasonable rate.

I don't have a credit card, haven't for about 20 years. But my ex husband asked me to take out a loan in my name years ago (as I was the one with the steady reliable income) so he could buy expensive equipment he needed to be self employed. I was an idiot obviously, but it was an abusive relationship and I was scared. I'm now left paying it back.