Selling up to be mortgage free?

[Simonlebonbon]

I have 150,000 equity in my home and sadly I can't work any longer, due to my child's additional needs. My job was minimum wage, but still more than benefits.

I'm wondering if I should sell up, buy somewhere locally that's a bit shit, do it up and wait until I can return to work, probably in my early 40s, so I'll hopefully still be able to get something else.

Once my mortgage deal ends I'll be paying minimum £800 p/m, if I don't pay rent and save that, sell my house and have some decent savings, would this be a decent plan or do I live on planet cuckoo?

DH works NMW so it's not like we are rolling in it.

Has anyone done this? Thanks for reading.

If you can find a house within budget you're 100% sorted but just don't forget to keep your finances in order outside of it. ie put a small amount away each month/year into a proper registered investment fund not just a savings & speak to a bank about long term financing. Cause you might be able to come out even better off long term with no mortgage payments right now

BTW, sorry to hear about your child's special needs

@Jk8 thank you!

It's such a weird Time to know what to do isn't it? Bloody property market has always been unpredictable but things feel worse currently.

I really appreciate your advice x

Can you save enough money to do the renovations? Do you have the time to be able to do the renovations?

If the house is in a good area, it sounds like a possible plan. Don't buy in a bad area.

@CatOnTheChair

The area is likely going to be ex council house which isn't the end of the world for me, I don't let my kids play out here so they wouldn't there. And it's not far from the schools my kids attend. (All different due to their needs and ages!)

I've seen 4 bed houses for 110k and I'd have enough left over to make them really quite pleasant!

I found "the dream" house recently, fancy pants area, 4 bed detached and it was 300k, but would have needed another 100k probably to renovate it to make it really work for my family.

But if I downsize now, get saving, look at something I can do from home as my wee lad gets bigger etc, then maybe that dream house could be mine one day.

I have to admit, part of me misses the council estates I've lived on, not the smell of weed and worry of knife crime, xl bully's off the lead and dog shit, I mean, that's the less desirable parts, but I do love the sense of community you get!

We're up north thankfully so no really daft prices!

I’m currently renovating and building materials have shot up in price recently so you might struggle to keep costs down. Have you claim all the benefits you’re entitled to?

Sounds like a smart plan. Short term stress of moving but massive relief not to be forking out £800pm, and you can still get a decent house and make it home. I come from a place where houses are cheap so it's always been my safety net that if necessary I can go back there and get a house for much less. In a shitter area of course, but nothing deal-breaking. So I'd go for it in your situation.

@Ihaveshitfriends (I'll be your friend!) Yeah, we get everything we're entitled to, it just goes so quickly. Little things like my son can chew through clothes or bedding etc, nothing like that is factored into it. I just would like some form of security. Right now I feel I'd like to have some modicum of security. Building costs are fecking wild, aren't they?

@Pinkdelight3 - being from a place with cheaper housing definitely has its advantages!

OP, you may already have decided what to do! I did this a few months ago .... downsized from a 3 bed semi to a 2 bed flat, being mortgage free enabled me to chuck in horrible job and take a bit of time to relax and destress. My son was in year 2 of university, so timing worked out. I think it's a good plan.

Definitely do it if you can. Cost it out properly - legal costs, moving costs, etc. To have a home owned outright is a blessing that few people manage to achieve. It will give you a sense of security and stability that will bring a lot of positives to your life.

My house is currently on the market! Thanks for encouraging words, very kind folks :)

I quite like the smell of weed, but it's insufferable if it's coming through your walls.

OP, good luck with your house sale. Can I just ask, have you checked that your benefits won't be stopped when you have the leftover cash from the sale and purchase in your bank? Iirc they aren't too keen on folks who have decent savings.

Good luck with the sale! Love your username

Nothing to add OP, other than your user name is what myself and OH routinely call Simon Le Bon, so it made me smile. Good luck!

Thanks for the kind comments on my username 😂❤

@KievLoverTwo I'll be left after the sale after all the EA fees and solicitors with about 200 quid 🙈

Sadly it's not looking promising yet, I think most buyers are holding out hope for this crash, however if it happens I simply won't be selling unless the vendor reduces her home also.
It's a tough market, isn't it?

But thanks for encouragement ☺ x

Good luck!

It definitely sounds like a plan if you can make the numbers work. It could also be that a smaller house drops in value so you're still able to do it.

Could you manage with a small mortgage? Eg £30-50k? If it gives you access to houses worth up to £200k instead of £150k, it could give you a lot more choice, in a better area, bigger, or not having to buy a doer upper?

A £50k mortgage would be around £300 pm and with your DHs wages and benefits you'd be entitled to due to your DCs additional needs, it could be affordable.

Just answered my own question. Sorry.