should i sell my house?

[mummyof2kidsx]

hi, we are in about £20000 debt at the moment but when we bought our house 2.5 years ago we put down 22000 deposit. If we sell the house and get what we want for it we would make about 15000 on it, leaving us with 37000. I could pay my debts off and start again with money still left over for a deposit on another house. I am worried about doing this though because with the debt we have now and the fact that we live in our overdraft might stop us being able to get another mortgage. Or will it? When you apply for a mortgage can you tell them that you wont have the debt as it will be paid off when my current house is sold? I just dont want to sell my house and then not be able to buy another one. Its just that we struggle to go from month to month without borrowing more money to pay our bills, and its just getting worse... :(

Could you remortgage your current house so that you use some of the equity to repay your debts? Moving house costs money in stamp duty, estate agents fees and removals costs so you could eat through most of your deposit.

I'm in the same position as you op. Have decided to sell up, clear debt and bank the rest while renting a house until credit rating improves enough to get another mortgage. It's not for everyone but the debt is too much of a burden to carry for much longer.

I am in the same position too. We have 22k debt, flat worth £115k with an £89k mortgage. As we can afford the repayments for now we are holding tight and praying that we'll have the unsecured debts paid off before interest rates go up. I think a lot of people are in our position

glad to hear of people in the same position as us! it's so hard! the main reason I think selling would help is that I know I am hoping to make a profit on the house of 15000-20000. We bought it for 111000 but have spent about 7000 on it and houses in the area are going for 125000-135000...

Honestly in your position i would either sit tight if you can afford the repayments (even though it is tight) or remortgage and stay in your house. The good thing about your position is even though its hard now, you are working towards paying off your own house. If you move the new place might need £7k of work too and you'll be back at square 1. It will get better its just very hard now just take one day at a time

We're in a similar position to you. We're sitting tight as we're in our forever home and I'm able to go back to work next year. Not feasible at the moment due to childcare. We only moved last year but a combination of dh's job cancelling all overtime and emergency repairs needing done on house have meant we've racked up debts. We've a car loan due paid off next year too so will then throw that money at paying off the debts. At the moment we're robbing peter to pay Paul and I'm stressed out but I know even if we move things will still be tight and it'll be false economy. Just sitting tight for now and keeping our focus on the longterm

If I were you I would look at remortgaging rather than moving. You just never know, you could move and end up in even more debt if there are repairs needed on the new house

I would get yourself over to money saving expert and ask the very experienced debt free wannabe board.

Have you got an idea of your incomings and outgoings, and how much you could divert to debt repayments if you make budget savings?

Ill take a look at money saving expert thanks. I can make the repayments but Im forced to borrow more to pay the bills so it seems never ending.
I am a sahm, i will be returning to work but i cant just yet because of childcare, same as you mum23girlys.. its the hours too, my husband works 12 hour shifts that id need to work around. his hisfts are different every week so id need a job that suits the hours i need... which will b hard to find.

Oh mummy that sounds so like us. Dh works mixed 12 hour shifts and I can't imagine any employer letting me work round them. Think a job will have to wait until my youngest is at school and we can make use of breakfast and after school clubs. I feel pretty useless just now when we're constantly having to put the weekly shop on our credit card. Thankfully we've enough to cover the bills but nothing left after that. Just keeping my fingers crossed that dh's work picks up soon and the overtime comes back on.