I don't know what to do...

[WhatsGoingOnEh]

I bought a house 2.5 years ago. It's in the right town, but not in a very desirable street. It was affordable! I bought it by myself, but I've since married.

Last week, a lovely house that's been for sale since last year, was reduced again and is now in our price range.

We've viewed it twice and I LOVE it. It's the perfect size for us. Current house has only one reception room, which is somewhat limiting when you've got 2 adults and 2 kids. The new house has got 3 reception rooms, plus big bedrooms, a nice garden. Plus it's detached and on a really lovely street.

I saw our mortgage broker and he's found us a joint mortgage.

The estate agent contacted the owners and they've accepted our offer (£5k under asking price) and given us 5 weeks' grace to find a buyer for our current place.

All good, right?

Apparently not! DH has some reservations.

1. To secure mortgage, we'd need to clear our credit cards. That's about £5k. We don't actually know how we'd do that (except we could borrow from my Dad then repay later.)

2. The new mortgage would be about 50% more than we pay now, each month. DH is worried we'd struggle as we always run out of money each month as it is. We bring in £4K a month, current mortgage is £700 and new mortgage would be £1100. He thinks that's too tight.

3. DH is still in the mortgage from his first relationship as his ex won't sell. So we'd pay the higher stamp duty - £22k (!!!) rather than £10k. The mortgage broker had factored that in but it's still obviously a LOT. The ex won't sell and we can't take her to court for another 6 years, when the kids are 18.

DH says we should stay here, get our finances in order, clear debts, etc, then save up and buy something when we're more "ready".

I think, this house is perfect, and a bargain, so just GRAB it now and sort everything out afterwards. We don't be buying it for about 10% under its value.

Your thoughts?

I don't know why the house is not selling or being reduced. It went on the market last year for over £500k and is now £400k.

My parents think it's too good to be true. ?? It's empty, a probate sale.

Can't he get off the mortgage from the ex somehow? Or have this house in your name only (take it you'd not get the mortgage then?)

Despite loving the house, I'm really in the fence. On one hand, the hassle of buying and selling is daunting - I had a horrible time before, it took 10 MONTHS to buy this place as the vendors were mucked about by their vendors. And cleaning it, decluttering, etc, is always a faff.

On the other hand, the other house is lovely. I can picture us living there for years.

Hello! No, don't think he can get off the mortgage without a long legal battle. And no, I can't get a big enough mortgage by myself.

Can you cut back for a few months and live as you'd need to in order to find the £1100 per month so you can prove to yourselves it is affordable?

We really weren't thinking of moving. I also fixed our mortgage last year, so it'd be £3k to end it early. Which is yet another financial setback.

Estate agent is saying to DH that they could try to get more for our place (we'd be buying/selling through same agents) but DH still not keen.

I love that idea! But if we bought this one, we wouldn't have long to find out!

I don't know what to do. I'm REALLY torn.

I wouldn't. It sounds like you cannot afford it,sorry.

So, if you're paying another £400 in mortgage costs each month how are you also going to find the money to pay your dad back the £5k for paying off your credit card? You sound like you don't have a plan for finding the additional £400 for the mortgage, so where would you find a further £400 a month (assuming he wants paid back over 12 months)?

I'd also query if you're really buying it for 10% under its value. The vendors have accepted an offer from someone who's not even on the market yet - so they haven't exactly got people queuing up to buy by the sounds of things. Maybe it was overpriced and you're buying it for the real current market value...

I agree with your DH, get your finances sorted then buy something.

I know that if we don't buy it, someone else will and make a fortune on it.

We're not miserable where we are. But I work from home and don't have an office here - just a corner of the sitting room which is really restrictive.

How many years is the new mortgage? Lengthening the term would reduce the monthly payments.

Ouch the increased stamp duty would put me off. 22k

On £4K a month, £1100 is only just over 25% of your income. I think that's quite a cheap outgoing.

If you can't afford to pay off the credit cards yourselves where are you getting the stamp duty and other fees from?

Presumably the equity in your current property?

Is there enough to do that?

Have you got an actual mortgage in principle or just a proposal with no credit credit?

4k a month income, 5k on credit cards, you don't have any savings to cover any moving costs, you run out of money each month, and you want to up your mortgage by 50%?

I don't think you will get mortgage approval.

If the house hasn't sold and has been on the market since last year then it was over priced and not a bargain.

Based on what you've said, you can't afford it!

Re your dh and his ex, was it agreed on divorce that she would stay in the house till the dc are 18? Many couples have to sell up these days.

It seems like a really bad time to buy.

Your DP needs to get rid of the house his ex is in! Paying an extra £10k of stamp duty is MADNESS.

Try living for the next year "paying" the 'new' mortgage amount to see if you can actually afford that a month.

Also get the CC debts cleared ASAP.

If you can't afford to do that, I can't see how you can afford a more expensive mortgage.

It isn't usual to have to keep the house until the kids are 18 any more - worth going to court to try and change that. Can the ex buy him out?

I don't think we can afford it either.

He's seeing a solicitor about the old mortgage and I LOVE the idea of sorting out our money now, before we sink any lower.

THANK YOU!

This has clarified things for me. Thank you!

We were in a similar position at one point. We went for it and although it was tight, it was absolutely the right long term decision. That house went up in value around 4x as much as the old house because it was a better house in a far better location plus it was only tight for a year or so. 25% of your joint income isn't too high as long as you're sensible plus the extra quality of life it will afford you will benefit you all especially silly as you need to work from home.

DH just told the estate agent, and he won't take no for an answer.

He's saying he could get an extra £5k for our place and that the vendors would probably go down another £5-10k on that if it came to it.

It's all giving DH the fear. But I'm thinking, "it's clearly just meant to be!"

Argh. I'd just accepted it, and then this.

Tumblethumps, thanks for your lovely story. I'm happy it worked out so well for all of you!

I know the other house is far better and a much better investment. But in which case - why hasn't it sold in a year?