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Is this feasible???

3 replies

Millionairerow · 07/09/2014 17:49

Feeling in a rut. I have a good job and nice house but don't really like the village I'm in. There is no school so we go to small town 3 miles away and I'd like to move there so we could walk to school or enjoy nights out without having to get a taxi home. A new development is being built in the town. I'd love a new house but the issue is we're caught in the age old money trap. I have my eye on a house which is similar to what I have though new, and slightly better layout. The houses tho are about 10% dearer. They offer house exchange but I know lenders will not lend us more than we are borrowing so we'd have a shortfall especially as we have a lot of debt. New house - £345k. A similar house was sold here for about £299k but that was for a quick sale. Specs of house are similar. Our lenders will give us £265k of which balance is £245k now (flexible mortgage,aging practically no interest). Want to keep this mortgage. We earn £105k per year between us but have about £60k worth of debt. Is this feasible?? What are the pitfalls of doing a house exchange? Part of me would like to sell and rent for a while until we pay off debts and then get something new and similar. But not sure if we'd get such a good deal on our mortgage. I knows you think I'm mad!!!

OP posts:
Teeb · 07/09/2014 17:54

You have a good salary. What is the debt? Credit cards, loans? You should write a statement of affairs listing all your incoming/outgoing money because there's no reason that I can see why you couldn't get rid of your debt within 12 or 18 months.

I don't believe you would be able to port your current mortgage or remortgage with that figure of debt.

Fairylea · 07/09/2014 18:00

I agree with the previous poster. Tackle the debt first and try and clear it asap and you will then be in a better position.

Bearbehind · 07/09/2014 20:27

OP, I don't mean to be harsh but with £60k of (presumably) unsecured debt you have no chance whatsoever of remortgaging under the new MMR rules on your income, especially if you have children/ childcare costs.

Just try putting your details into a main lenders affordability calculators with and without the debt and see what a massive difference it makes.

If you can get the debt down to a much more reasonable level then you can think about moving.

Also, if the new builds are selling off plan you'll probably need to be renting to even reserve- they are ruthless- you need to be virtually sold to even reserve but the builders won't give you a completion date and, chances are, your chain for selling won't wait for you.

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