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Original poster

Sell our flat and buy or Rent a House?

6 replies

Alixand · 02/07/2013 13:06

Hello

I was wondering if any has any advice for me?

I own a small one bedroom flat which me, my husband and our daughter live in. There will be some equity in it, but I have an outstanding loan and a bad credit history.

I am worried about being refused a mortgage if I apply so it might be better for my husband to apply for a mortgage.

However, I was wondering if it might be best to sell the flat, pay off our loan and rent for a while. Then we will have the cash for a deposit and might be more credit worthy.

Any ideas?

OP posts:
Willow33 · 13/07/2013 00:22

Hi I believe you can pay a few pounds to get your credit score / rating thru companies like experian. The housing market is going up so i don't think its a good idea to rent for a while when you have sold urs. The house you want to buy will probably go up in price a lot more, together with the rent you are rating up so not good!

JessMcL · 14/07/2013 02:10

If you want to sell- sell. But keep in mind what the world is like at the moment- you might not get as much as you hope and your daughter could be 21 before you sell (maybe a slight overexageration but you know what I mean)

Unfortunately a bad credit score clings to you for a very long time. I imagine you are considering all of this to get more space? I cant imagine it being great living in a one bedroom flat with a little one!

If your husbands credit is in good standing then apply for a mortgage in his name if you really want to move- renting is dead money.

But be aware that if anything does happen between you (touch wood it doesn't) you won't see a penny from it because it will be all in his name. Sorry to be pessimistic but it is something you have to consider.

Original poster
Alixand · 14/07/2013 09:27

Thank you both.

There is lots to think about and I knew there wouldn't be an easy answer.

OP posts:
HappyAsASandboy · 14/07/2013 10:04

JessMcL isn't correct in her post above. Even if your DH provides the deposit, pays all the mortgage and is the sole named owner, it would be very unusual for you to not have a share in the house (starting point for negotiations of 50%) in the event of a split. If it is the martial home, you will be deemed to have contributed to the marriage in other ways (Childcare? Housework? Buying food?) and the house is a marital asset that was only obtainable through your joint efforts.

You can register your interest in the property through the Land Registry, which would stop your DH selling it from under you in the event of a split.

NB None of this protection applies if you are not married. But your post says 'husband' so I assuming you are married.

Jenijena · 14/07/2013 10:28

There is a free credit scoring company, where it doesn't cost you to check, noddle I think.

Apples7 · 16/07/2013 18:17

I would sell curent house & buy another because for a 2 bed rent it was 550 for my sister a month& our morgage for 3 bed semi detetched is 600 so its cheaper to buy in some senses

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