Any mortgage experts around that could explain something to me please

[Mammasjusttired]

We’re currently in a really rubbish financial situation, neither me or DH have good credit ratings. We currently own our home but are slightly behind on mortgage as well as other bills. We desperately need to move house as well have a small two bedroom and due to DC additional needs we need another bedroom.
obviously getting a mortgage for a bigger house is not an option. However we have seen a shared ownership house near us that we are interested in. Is this something a mortgage company would allow us to do in our situation?
For reference we have approx £80k equity in the house. We bought it for 155 and it is now worth approx £210. New house is 55% ownership for £155

Put up a plasterboard wall down the middle
of the master bedroom. It won’t be particularly neat given it’ll run to the middle of your window, but youll get two single bedrooms out of it.

Get financial advice from CAB, check out Turn2us on line. Do NOT buy shared ownership, as you'll have yearly rent increases, service charges, issues with you having to repair / pick up all maintenance. I worked for a housing association, it's a money maker for them, not you.

Hi OP, I work for a sub prime lender..When did you miss your 1 payment ? if you have paid the last 6 months on time but owe 1 month from previously,.pay it off and it is possible. You will pay a higher interest rate due to your credit rating. In short though if the calculations show you can afford the mortgage, rent, sc etc then yes you could do it.

Agreed, I know a few couples who have been properly stuffed by shared ownership schemes. If there is any other option - ladder up into a basic DIY loft conversion, bed in a shed, just grinning n' bearing the current set up a bit longer until you can get on an even keel - I'd do that before shared ownership. Apologies if none of that is feasible but I'm deeply sceptical about these schemes that try to fudge a solution to the basic problem that housing is just too expensive for many ordinary working people.

Have you explored whether you're eligible for a Disabled Facilities Grant to convert your loft or build a downstairs extension?

Don't do it! I did this and ended up renting for 10 years before I could get back on the property ladder.
Is an extension an option at your current house?
Remortgage and release some equity to clear the arrears and gain the extra room?

Shared ownership only works well if you can realisticallly staircase to own more of the property later.

Our first home was SO 50% and it worked well for us as I was at the start of a career and knew my earning potential would allow us to own 100% further down the road. Which we did after 2 years and then years later sold and purchased current home.

As others have suggested look for a solution with your current home and get the debts under control. Speak to stepchange for advice.

Moving costs would need factoring in, moving company / van hire, stamp duty, conveyancing, estate agents.
Moving to rented would be less costly up front but monthly would likely much more than your mortgage.

As PP wrote, partition wall in one of the bedrooms.

How old are your DC? Do they spend most of their time downstairs or in their room? What's the downstairs room in green on the floor plan?

Could you remove the green room and put a divider in the lounge so your bed could tuck in next to the kitchen wall with a kallax unit as a divider for storage and then sofa / tv etc in the bit by the outside doors? I cant work out if the dimensions work from the plan. Then each DC has a room upstairs, but the bigger one has a wardrobe for your clothes? Its not great but that would allow you to stay where you are, get your finances in order and aim to move somewhere bigger when you are on a bit more of a stable financial footing?

I agree with pp that if you rent for a while, you might find it incredibly difficult to get back into home ownership.

Yes but you will have to pay that upfront. You won’t get your money from your house until it completes I.e you have to move out. Rentals normally require you to pay upfront and in good time of you getting the keys, not the same day.

If the mortgage is staying the same you are in the same boat regarding mortgage payments.

As others have said, selling to then rent is potentially an awful decision. You may never get back on the ladder again.

Try and find ways to increase your income/reduce your outgoings as it seems like you have a cash flow issue which won’t be solved by moving house.

Is there no way you can rearrange your top floor? I’m no expert but seen a lot of programmes where they move walls around and find space!

can you explain more about needs of your disabled child, or how they affect sibling, why does disabled child need a separate bedroom.

Sorry only just seen this. He is autistic and has major violent meltdowns. This often results in people being hurt and unfortunately his sister has had the brunt of it a few times. I need her to be able to have her own “safe space” to go to and his bedroom would need to be one that I could remove anything that he can hurt himself or others with.