Selling up and renting

[Jojowash]

Hi guys,

I own my house but have £123,000
Mortgage I have debts of £25,000 and literally chasing my ass constantly, I work part time only now because of an injury to my back.

The house is to small and I would love to clear all my debts and start a fresh.

I have 2 boys 14 & 17 and my partner has moved in. It's not helping. I'm just paying interest on everything. I got a CCJ 2017 which I paid off in 8 months. It is on my record though. So feel maybe if struggle to be accepted to rent? Also thinking though that my house is worth £205,000 now so money would clear debt inevitably raise my credit rating. I also have 4 dogs which is another hinderance to getting rented property.

I can't see that I'll get clear, have inquired about debt management IVA but one loan company aren't on the scheme so I have to get that lower before I get it or go on debt management which will ruin my credit rating.

I just don't know what to do

Although it may not seem like it , you are in a much stronger position owning your own house than others that rent , if your partner has moved in he should be helping towards Day by day costs .
I'm not suggesting he takes on maintenance bills as this will give him a position to claim some of the property from you should you split but he should he putting money in towards food and gerne real living costs also helping towards the council tax as he will have invalidated the 25% discount you would have been claiming when you were there with just your children

The eldest son , does he have a part time job he can help towards food bills ? Even if it's just to get you through the near future

Personally I think selling is your worst option as your money will vanish with nothing to show for it and still need a roof over your head

Can you cut down on expenditures ? Such as takeaways , phone / tv/ subscriptions etc

Selling your house would be a real last resort for me. Would you be able to remortgage to take some equity out? I’m not sure how that works credit-rating wise.

Honestly you’ll struggle to get a rental with bad credit and 4 dogs. Is your partner paying his way? Can you cut back anywhere on outgoings and plough more into paying things off? It seems like it’s never ending but paying over the interest really will make a big difference. I’m sorry you’re struggling.

Release equity from your house to pay off your debt. Selling your home should be the last resort. You’ll never be as secure in a rented home as a home you own. Make sure your partner is paying their way.

Go

Go to a broker and see if you can remortgage interest only. It doesn't have to be forever, but your monthly payments would be halved.

Selling your home should be your absolute last resort. Right now you have a secure home provided you keep up the mortgage payments. Do everything you can to avoid selling. Focus on making sure the mortgage is paid, then council tax, then the debts. They will come down eventually. Sending good wishes.

It will be difficult to rent with four dogs. If your partner has moved in, won't that help with the finances?

Appreciate people love their dogs but a friend has one dog and I'm amazed at the costs she incurred especially vets bills so you really do have some additional outgoings having 4 which doesn't help your situation either

Having said that I agree with others to hang in there as once you give up your house it will be difficult to get back to owning and renting can be very unstable and costs each time you move

I think you'd find it difficult to find a rental which will take you and the dogs? Rent costs may also be similar to your mortgage - you'd be surprised these days how much it costs to rent - the house attaches to ours rents out for higher than our mortgage

Just stick it out - your partner is now presumably helping towards costs of bills so that should ease things

huge debts, small income, 4 dogs that probably don't get out much due to your illness...

any landlord that would take you isn't one that you would want to rent from, I'm afraid. New laws on capped deposits means landlords will be very reluctant to take pets, plus your financial issues means you will never pass referencing.

downsize the dogs (how do you afford them, let alone how do you walk them?), get some proper debt advice, get partner to contribute, cut back on all non-essentials, insurance switch, energy switch etc etc.

good luck.

Renting with poor credit is extremely difficult. It also isn’t cheap!