To sell my house and try and get a council house? To think I'm too poor to own?

[RedFence]

I don't want to rub people up the wrong way, I know its not easy to get a council house, I've never had one before, but I am at breaking point.

I've posted a few times about my house; I bought using a government scheme which means I have 60% equity. I am a single parent to 2 sons, 9&13, 9 yo is SEN. I work PT around their school as youngest cannot attend wrap around.

I bought the house whilst we were homeless, 3 of us in my mums tiny and damp spare room.

The house had so many issues not on the home report and because I'm stupid and didn't 'see' the issues. I had to get a new bathroom due to leaking, insulation, roof repair, raw sewage coming up through pipes into bathroom, it's been awful. I am in debt. And then last night, I come downstairs to a large area of the wall wet and dripping because the roof is leaking again. I can't afford it, it'll be another debt.

I have £9 in my account. I behind on my council tax, every month just seems to be a new repair. It's unsustainable. I skip meals, I haven't had my hair cut for 9 months, I wear trainers with holes in them. I don't mind if the alternative my sons miss out, I just want them to be okay. We have moved three times in just over a year, I feel so guilty.

I feel I was never in a position to be a home owner, inevitably I bought a house with issues because that's what I could afford, but I can afford the repairs, or the upgrades.

I don't know who I can talk to about this. I don't know what to do. Private rents are rare and ridiculously expensive, we also have a 5year old dog. I am breaking.

Could you sell the house and get a flat instead?

Or speak to a housing association and see whether you could qualify buy shared ownership home?

Then if you struggled with the rent part of shared-ownership, you could ask least get this paid through housing benefit (whatever it is called these days). Housing associations have resale houses, not just brand new developments, that you could look at.

Another option would be to sell and move to a cheaper area.

Getting a council house especially if you are a homeowner would be very tricky.

Or maybe you could try to keep the house, speak to the bank and see whether you can pay interest only on the mortgage while you try to do the repairs slowly.

Op would it be an idea to lengthen your mortgage or take extra on the mortgage to get the repairs done?

I don't think trying to get a council house is the best long term solution.
You have a few years while your kids are young to get through.

Having a chunk of money in the bank will mean your benefits are likely to be stopped.

Think carefully about what you do.

The first thing I would do would be to look at the survey you had done, did they not pick up the issues or did you not pay for a proper survey? Seek some advice from your solicitor if what the survey says doesn’t match up to the reality. You may be able to make a claim, however it may be difficult to do if you already paid out for repairs.

You need to look what’s covered by the housing associations buildings insurance.

You also need to look at your income as you haven’t stated income from benefits. You should be claiming disability for your child, UC, you didn’t list child benefit either? Unless your mortgage is extremely high I don’t see why you’ve got in such a pickle.

UC pay towards the rent aspect of your housing costs and you may be eligible for support for mortgage interest payments though I’d think very carefully before you claim that as it’s a loan with interest these days.

I think you are unlikely to get a council house. If you sell up you will make yourself intentionally homeless. And at the moment you will be classed as adequately housed.

Was the house new when you bought it? If so the developers could be liable to fix issues and the boiler might be under warranty.

How important is your credit rating? Do you work in an industry where it matters?

Do you have access to a credit card now? In your circumstances, I would prioritise the roof (making sure you use personal recommendations for tradesmen) even if it had to go on a card. If you can't use the card directly, switch food and other spending to it.

Once complete, I'd either look into taking a mortgage holiday (I think you can apply for six months) or speak to an organisation like Step Change about restructuring the debt.

But you do need a proper budget. You need to understand exactly where your money goes. Is it the debt causing the biggest issue? If so that needs looking at but it will limit your ability to access further credit which if you need immediate repair work means considering the timing.

The other thing you could look into is the mortgage period. Can you extend it to lower monthly payments? You can still overpay up to 10 per cent a year on most (bringing the term and interest down again) but the amount you have to pay each month would be lower.

I haven't read all of the replies, but it might be worth looking into an 'independent voluntary arrangement' for any consumer debt you have which would lower your monthly payments and prevent any CCJs appearing on your credit report.

The first step is getting a handle on your incomings and outgoings and understanding your cash flow.

I second the advice of getting support from a charity focused on helping people in your situation with managing finances - they will often have access to a wealth of associated services that could make your life easier - such as maintaining your home through local schemes and initiatives that provide tradespeople and materials at reduced or zero cost. Have a look into schemes such as solar panels that can be provided free of charge to lower-income households too.

The first thing I would do would be to look at the survey you had done, did they not pick up the issues or did you not pay for a proper survey? Seek some advice from your solicitor if what the survey says doesn’t match up to the reality. You may be able to make a claim, however it may be difficult to do if you already paid out for repairs

Not saying it isn't worth checking this, but unless OP specifically had a structural report where specific questions were asked that are now proved to be answered false, this will go nowhere. The lender survey is only to ascertain whether the property is mortgageable, and (generally) so long as the property is of a regular construction, has a roof, a bathroom and a kitchen, that's all their bothered with.

I don’t have any advice on your housing situation but with regards to clothing help, you could contact https://theclothingbank.org.uk/ They are a Yorkshire based charity but aim to help anyone who needs it. I really feel for you, I hope you get the help you need.

Contact your insurance company and see if any of it is covered by them.

Stop spending more on food than on your mortgage! That's insane.

Get the leak fixed asap.

Go through your spending and use something like monzo to create pots of money to spend from.

Its a bit different as I don’t own a home but I intentionally gave notice to leave my private rented property due to ridiculous rent increase, not being able to afford it anymore, debt and mental health being affected. The council still helped house me as they could see WHY I had done it and could see the reasons it was no longer reasonable for me to stay there and I rehoused before my private rented tenancy even ended. Your council may well help you but it really does depend on your area

I will add I’m in a fairly rural area. Not a big city and there is probably a lot less people on the housing wait lists here

Can you get a grant from the council to fix the roof ?

OP your Home Insurance provider may be able to cover roof repairs and damp investigation

Give them a ring.

https://www.entitledto.co.uk/help/home-improvements-grants

Have a look on here

Ensure you're claiming everything you're entitled to. When was suddenly made single a few years ago, I claimed UC and then qualified for a grant to update my boiler. It was a weight off my mind to know my boiler was in good condition. Maintaining a boiler can sometimes be quite a simple job, if your pressure is dropping over time it's likely a slow leak somewhere. Pop your heating on, bleed all the radiators, and check every pipe on each radiator for drips. Sometimes all that's failed is the valve washer, they get brittle over time and allow small leaks, causing low pressure in the system. That is a cheaper fix than a new boiler.

Could you stretch to a £99 British gas service? They will explain how to maintain your system while they're there.

I agree with the budgeting advice, days out with ice creams and ad hoc spends absolutely wrack up quickly. Gey a spreadsheet going with all your income and outgoings across the month, see what you can delay, cut, or reduce vs absolute bills. I am doing this myself after an unexpected redundancy earlier this year- I'm back in work now but it's completely drained my savings and I'm pinching every penny to get back to an even keel again. I had to sort a knocking boiler and a dodgy roof during this time, so I feel for you. It's overwhelming to face home repairs, especially if it's a leak or boiler issue, but there are options.

Or here

https://www.foundations.uk.com/

Do you have a family member you could move in with?

In theory, if you moved back with your mum then you could sell your home and the little money to do get could be used as a deposit for a new place (and use the extra money you save as a bigger deposit).

Depending on your relationship with your mum, you could even look into buying a bigger property together.

You’ll both then be contributing financially, both contribute physically for any work that needs doing and you’ll have someone to help with childcare.

If your ex will have his kids more, then they’ll spend even less time at your mums too.

If they have an EHCP they can get a taxi to school and so they may be able to get to their school still.

I think you’ve done an incredible job at buying a home, even if it’s not worked out as well as planned.

I don't know how it works where you are, but here they put you into emergency homes which are hotels/hostels. Then they put you into what ever they have, which is often a 2 bed council flat. Two friends of mine are classed as over crowded 6/7 in a 2 bed flat. They've been waiting years, never heard anything. There are no council houses available. If you don't mind that, then you could do it. Have you claimed universal credit? Try applying on line. If your child has a disability, then you can apply for dla. Perhaps going to the citizens advice bureau, would be beneficial.

Lots of good advice posted here but just wanted to add, please don't be hard on yourself. Working with two kids, especially where there are additional needs, is very hard and doesn't leave you much head space to keep on top of things. I hear how hard things are for you but it sounds like you are really trying to do the best for your children.

OP, was the house a newbuild when you bought it? When did you buy it and when was it built? My newbuild apartment had a long warranty period of 10 years and structural issues would fall under it, i.e. it would not be my responsibility to fix and pay for leaks etc. Also, would this not fall under building insurance and would your HA not require you to have one as a condition of the lease? Is your house a freehold or leasehold? If a leasehold your responsibilities may differ.

Can you extend your mortgage to get lower monthly payments, and use the extra money for the repairs?

It’s extreme (tbf so we’re the circumstances that led to it, which I can’t go into) but I know someone who basically defaulted on the mortgagee and so the house was repossessed and council had to find somewhere. They eventually got a CH but had to stay with family meantime - I think over a year. And obviously will be unlikely to get a mortgage again.

Actually I've had a zany idea. It might not work for loads of reasons but worth suggesting it just in case...

Could your Mum move in with you? Combine financial forces temporarily.

Would your Mum be able to rent out her property (if she owns) but again major warning this comes with risks and potential heartache.

The income from that could help pay your Mum's mortgage (if she has one) and/or help support your family through a tough time.

It's a HUGE ask though.

I'm thinking desperate times may call for desperate measures.

Admittedly this was 20 years ago, but I was able to get social housing whilst owning a home. But this was a peculiar set of circumstances and the area I moved into, they couldn’t easily let properties as it’s fairly remote.