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??

I would consider moving. The courts are not there to get involved where there is a genuine need and your daughter will have to come to terms with it. As other posters have said property is comparatively cheap in the Midlands, transport links and other things are great, and we have a desperate undersupply of any kind of teacher.

But it isn't an immediate solution. Selling up to solve a problem rarely works - imagine the pressure you will be under. People are wankers about property and someone will scent blood. The last thing you need is a complete arsehole downgrading their offer by £50k on the day before completion because they have figured out you are desperate.

If you can sell your house you can break the emotional link enough to rent it, and trial something in a better long term area. It would make it harder for your ex to prove intent for a permanent move too.

In the meantime someone here recommended skills bootcamp - free government online qualifications. In your position I probably would be tutoring with no need to stick to your core subject as your skills are transferable, but I am doing a 3 month project management qualification at about 16 hours per week with careers advice and interviews at the end. I signed up a week ago and will start straight away. It's worth investigation if you are unsure about teaching longer term.

If you had considered shared ownership OP- something like this in Guildford might suit- good area for work too and a good area with a teen . Would give you the security of tenure and also some cash still in bank - if you bought say40% outright - you would end up with monthly rent and service charge combined of around £685 which I think is well doable. Personally I would think about it rather than live just any old place because it's cheap housing.

www.rightmove.co.uk/properties/123232121#/?channel=RES_BUY

In reality OP it's doubtful you could rent atm. If your credit history is that bad you will not be accepted. Shit but true. Even paying upfront won't guarantee acceptance as they will still have concerns about your reliability.
I can see why you're considering this, I really can. So looking at the facts-It's a very small 2 up 2 down terrace that would sell for more than £200k? If you then rented at say £1250 per month ( yes that's realistic) and spent at your current income rate (as you have no mortgage but still spend your whole salary) you would be going through it at £3250 per month. 150,000 (after paying back your Mum) / 3250 = 46 months. It would all be gone in less than 4 years (other than if you managed to get another job to top it up).
However 4 years is enough time to get your poorly daughter to her next stage of life without you being so run down all the time that you're at breaking point. If you manage to get back into work it will last longer, or you'd be able to use it as a deposit. 6 years on your credit file would be clear.
So, to sum up, I think you should go talk to a letting agent and see if you would be able to do it in the first instance. Then work out what you would do if completion happened and you'd not got a rental (Airbnb etc).
I don't hold with this keep it at all costs. Life turns in a sixpence. Poverty is never ending misery. Use your asset for you and your daughter.
BTW have you considered becoming an Apprenticeship Tutor? There are usually vacancies for Teaching Assessors and it pays circa £32k often remote. Just a thought! Good luck OP.

I really wouldn’t sell in that case esp as earlier on you said how bad your credit history is - you will struggle to buy a house and renting will burn through any money you have from the sale.
If you have to stop working/retire early due to ill health then things will be extremely tough.

Check your fuel bill account - do you really need to pay £350/month?
A couple of years ago I checked mine and realised we were 1000s in credit and so dropped our monthly payments from almost £400 down to £50.
Currently, the account says I should be paying £400+/month but I have set it to £150 and it’s covering the bills. I may need to up it but we live in a large, draughty house. Yours shouldn’t be that expensive esp if you only have the heating on for an hour a day.

I think you’d be totally bonkers for selling up. My mum did that with her outright owned home. I literally begged her not to and spelled out what would happen if she did. She’s a stubborn old thing who sold it, spent the proceeds on crap and now has to live with us as she’s skint. She’s also still working in her 70s part time. You don’t want that for yourself, surely? You need the security of owning somewhere.

I am a landlord. You will find it extremely difficult to find a rental in your position. Competition is very high now as the government has forced anyone without deep pockets out of the market. Don’t rent out your house, that has disaster and repossession written all over it.

I would stay put for now. I get your dd wants to run away and so do you. But she’s in the crucial GCSE years so you simply can’t. Look into all the online options available to you. If you’re physically at home but online teaching when your dd is home from school, does that work?

If all else fails, I would get a lodger. Selling your home and finding yourselves made homeless by a Landlord will be far worse for your dd’s mental health. As for the suggestions to move areas, it may be good in the future but your dd needs to be mentally in a good enough place to take the train or bus alone to see her dad otherwise you’ll be ferrying her around a lot and that doesn’t sound feasible right now.

To me the answer is obvious - change jobs. I retrained as a instructional designer while teaching more than full time. I worked 7 days a week for a year to pull it off. It wouldn't be a huge change for you. Your teaching experience is invaluable.

Growth industry. Much better pay than teaching. I absolutely love what I do.

Look at MicroMasters in Instructional Design and Technology on EdX. And Learning Experience Design on NovoEd (free course).

Currently to up your income you could tutor online.

Don't sell your house. It'll be a big step towards homelessness.

No don't sell your house as its your long term future asset. Rents are astronomical atm and in my area almost three times the cost of an average mortgage. I pay £700 pcm mortgage for a 3 bed house down south. The same house on my street is being let for £1800 pcm with a 10% increase for a new tenant. Your equity from your house sale won't last long if you rent.

Then getting back on the housing ladder after renting will be extremely expensive. You won't get much for your money if you buy in a few years time.

Options are:

• take a lodger
• let out your home
• take a small home improvement loan out and renovate your home
• sell but downsize to a smaller home But do not sell and then rent a house, that's a bad idea and complete waste of money.

www.charityjob.co.uk/

You can set the filters to hybrid or remote only when searching for a new job.

Out of the (admittedly hot) frying pan and into the fire.

Is a second p/t job out of the question?

Renting out her home is not an option for financial reasons. Op doesn’t even have the set up costs let alone a financial buffer. Any kind of loan is dependent on being able to pay it back longer term and is as risky as a zero % spending or balance transfer credit card.

Single mum here too. Totally get the burden, it sometimes feels too heavy.

I'd say don't sell though. The risk of not being able to get back into the housing market would outweigh the short term benefit for me.

I'm biased perhaps though, took me ages to get on the housing ladder.

I'm sorry things are so stressful and I'm sorry about your mum - I'm sure she would pause the repayments to her if she could.

I agree with most others that I wouldn't sell up to step off the property ladder - only to buy cheaper if you decide to do that.

You have a mortgage free house except for this 50k loan - which you are not charged interest on. You won't be in a stronger position other than "downsizing" to cheaper.

I would also urge you to speak to Stepchange or CAP (Christians against poverty) or national debt line.

They can help you draw up a budget and decide what you can afford to pay creditors. So for example the loan you are paying. You might be paying £250 but find you can offer them £40 for example. You are supposed to offer all of your creditors in fair proportion to what you owe and can afford.

With poor credit and no need for a mortgage you don't have to worry about your credit rating if you default on loans.

Ask for advice about the loan to your mum as well. I think the theory is if you offer what you can afford to pay then even if it went to court you would only be asked to pay what you can afford anyway. Your mum wouldn't want you to lose your home to pay this. I know it isn't her choice now but the local authority are not going to quickly act to boot you out of your home if payments reduce while you are between jobs. Those wheels would grind very slowly.

The Debt Free Wannabe section of the Money Saving Expert website has a lot of people who are very knowledgeable about your rights managing debt.

I think you need to be more open minded in your job search. You could teach outside of your specialism (some subjects struggle to recruit specialists) or get a job in a different sector.

If you could get an evening and weekend job in a supermarket or hospitality you could keep your days free for supply teaching - and if you think you will only get two days supply that shouldn't be too much.

Doing supply is good because it's getting your face know in lots of schools if jobs or longer term supply come up.

Strip it back and you are mortgage free and in uncertain work. Due to the fact that you are mortgage free any work should tide you over in the very short term. You would claim universal credit if your income is low and default on your loans and debts for a while if you have to.

You describe paying off utility debt from £2000 down to £300. If you are paying it off at £100 a month (might be more like £150 from the sound of your bills) that debt will be gone in the next three months.

Like most of us you feel you need to pay all your obligations but you might need to learn about and adopt a new attitude where you know what your priority bills are and what you cannot afford to pay doesn't get paid for a while. It's scary if you have never not paid loans and debts but it is officially a "thing". That's why unsecured credit is more expensive- it's risky for the lender. You prove what you can afford and pay it and then generally lenders don't bother to take you to court as even if they did they wouldn't get more.

You can do this x

Yes you would be mad to sell to rent. I don't really understand your work problem tbh. You could work in a supermarket if you can't get a teaching job in the next 3 months. You need to sort your utility bills out as that is not right. How much a month are you paying for your loan? Is it going into your mums bank account or the care home? Care home fees are £1000 a week.

Once you daughter has done her GCSEs then maybe think about selling and buying straightaway in an area you actually like.

Just to add - do not pay for debt advice - use a free charity. Fee charging companies that fee money could be going towards your debts.

Be wary of IVAs as companies get paid for them so they benefit from you taking one.

If in doubt ask on the money saving expert debt free wannabe section for advice. Many debt experts on there.

Wow, @Winter2020! Excellent advice!

I certainly wouldn't sell and then rent.
Security of tenure is vital in these difficult times, particularly with a dd with poor mental health.

She doesn't like the area but wants to be near her Dad a tosser who should, but doesn't contribute financially to her upbringing. Hmmmm !!!

You mentioned getting a large unexpected bill when a new energy supplier took over your account. You should double check that the new supplier charged you correctly. There have been recent news stories of suppliers overcharging by thousands due to a system error.

https://amp.theguardian.com/money/2022/aug/08/energy-bill-blunders-cost-of-living-crisis

Don't sell. You don't have a mortgage so you don't need to be worried about being kicked out. You'll have no security with renting and will have to pay hefty fees for checks and deposits plus paying the rent!

Also some posters are being mean saying you are stupid.... stress and anxiety does weird stuff to us and we dream of an escape. The grass really isn't always greener though. Also, if you could get a lodger that might help.

Def look into the energy thing, it is likely an error and no way should you be owing 2k. Bills seem high too, call them and say you can't afford it. Likely they can reduce the dd. Mine is 350 all in and I use the tumble every day and put the heating on whenever. Still building credit though, that's a 4 bed but quite small.
Def look at teaching other related subjects too, or anything you have to at least a level, not maths or English though as they require higher levels. Especially if a fixed term contract! What is your subject?
Also look at tutoring and fixed term roles in FE to get you through. And pru's / special schools, look on the gov schools search as loads exist but you wouldn't know it. Do check your local council teaching websites too as tes is too expensive for many educational settings to use nowadays.

Thank you for your kind words and good advice.

I would never lose my house because of the loan from my mum but it's a personal and moral obligation to keep paying it, as the top up to her care has to come from somewhere and that is what my payments are doing. She gets the maximum funding from the government but it doesn't cover the care she needs. I need to pay this, it's non negotiable. My mum would have done anything for me so I need to make sure she's properly cared for.

You could look at a nannying role given you're a teacher. Perhaps talk to a few agencies? You would be looking at a gross salary in excess of £40k, potentially more, if you're commutable to London.

Just adding my opinion, only because I'm someone who rents and, in your situation, I would certainly sell up and rent.

I've always been reluctant to have every penny tied up in a (mortgage) property and having nothing to live on. When I divorced, I promised myself I would always rent in future and I've never regretted it. Depends on what area of the country you live in; in London and the South-East rents are high, but in the East Midlands, for instance, rents are very doable.

And renting isn't always insecure.....there are many properties attached to large country house estates which can be rented for a lifetime. Other properties are run by charities which rent out cheaply to a specific type of person, or to a certain age range, or alms-houses....the list is endless. Most you can stay in 'forever' if you want to, no-one is going to sell up or turf you out (unless you trash the place or are a nuisance tenant).

Renting frees up my monthly money, and I can move across the country very easily when I want to, without the problem of selling up before I go. In the past (as a single parent) I managed to get a beautiful place for a peppercorn rent, a wing of a lovely old country house....I could never have afforded to buy something like that. Nowadays I rent an apartment, all modernised, but part of a bigger property, it's perfect and in a lovely area. It's so reasonably priced I will be able retire here and still manage to pay the rent on a state pension.

I've never had much money but it has never been a problem renting. Some places want references, but not all do, none of my past (or present) rents have asked for a credit check. Not all rents are done through estate agents, my current renting is done through a private property letting company, they like to meet possible tenants and choose their residents that way. My current rental didn't even ask for a deposit.....

I know it's not ideal for many who prefer to be on the property ladder, but I'm just putting forward the other point of view, there are so many negative comments on here that I think the discussion isn't balanced.

Good luck in whatever you decide to do...!

There are lots of remote jobs here OP www.workingmums.co.uk/jobs/job/19030830/opportunities-in-admin-sales-hr-and-more-hybrid-working-/?fbclid=IwAR2-oWMhKalQyhDUXSA7-hw8RuHUubnSwekdtGV5a6AbsGCMpwlbN9p-UVg