Should we go from mortgage to renting?

[fedthefuckupnowwhat]

I'm married SAHM with 2 DC aged 2 and 3. We have a mortgage on a tiny rundown flat worth at most 80k. It's become apparent that we'll never be able to afford a house (DH has crap credit record). But our flat is not adequate for our family. Is renting our only choice if we want a house?

If we were to sell up and start renting then DH and I split, what will happen to me and the DC?

Your flat is worth 80k but is there any equity that you could use as a deposit on a house? Couldn't your dh work on improving his credit rating? It could be better than he thinks and mortgage companies might not be too concerned about historic defaults. Have you considered trying to buy a house using a shared ownership scheme? Have you contacted your a housing association about this?

Thank you for your reply! The credit history is all about his overdraft. He's still paying it off.

What is the shared ownership scheme? Is that where the government owns some of the house? What are the cons of this?

if joint tenants split up, the tenancy is renegotiated. Who stays is not set in stone, it is a mix of who wants to stay and ensuring that the rent is still paid.

same as if you have a mortgage and split up.

The thing that scares me about renting is being thrown out at very little notice and having the DC turfed out of their home and possibly their school. It happened to a friend of mine. She was rehomed in a very dodgy area miles away from her friends & family. That scares me senseless.

Am I right, that is is a very real risk?

Could you rent out the crappy flat and use that to cover your mortgage so you could at least keep hold of the crappy flat should something go wrong with the renting situation
I have lots of friends who are landlords and to behonest if you are good tenants your landlord is unlikely to just turf you out Landlords like renting to families and will not usually turf you out without a good reason The only reason might be if they are selling up but if you get on well with the landlord they will give you plenty of notice
Also if you rent why not go through an Agent who will make sure you are protected and find you somewhere else to rent if you are given notice

rent out the flat so its mortgage is covered and you still ahve porperty;
rent some place else.
if you get turfed out you wil always have your own flat to fall back on