Can anyone give me hope about moving 'up' the ladder?

[RedFence]

I don't really want a reality check...just hope so I can hold onto the last morsel of optimism I have left.

Single parent to two boys, one SEN meaning I can only work part time. I work in HR, I have a Masters degree in the subject.

I bought a house last year using the LIFT scheme, I had NO idea what I was doing, I was petrified as we were homeless. I couldnt afford to buy in our home village. The only one there I could afford not too far from my sons schools is in an area we've never spent any time in, needs A LOT of work (much more than I realised, also have had leaks, and at one point raw sewage coming in), its on an extremely busy road that people constantly speed on.

We REALLY want to move back home.

My mortgage is 101k.

The cheapest house in our home village currently for sale is 299k. There was a flat for offers over 170k which has gone.

Is there hope? Could I get a mortgage for 200k and hope another very small house or flat comes up in a few years?

Do I hold back from taking out loans to do up current house past necessities? I've put in insulation, a new upstairs bathroom, fixed the roof, replaced trims. I am in debt.

I just need some guidance and hope, please!

Sorry I haven't a clue about LIFT or Scottish housebuying, but here is a link to
https://www.citizensadvice.org.uk/scotland/about-us/get-advice-s/
maybe they could provide information or tell you where to start.

One thing is for sure to make a property saleable it is best to keep it in good repair. But don't go overboard with decorative refurbishment.

Good luck.

Thank you @sbplanet, I appreciate you taking the time to post.

You need proffesional broker advice, they will probably recommend you reduce, or eliminate your current debt first. If you take more debt to do up your current home that will obviously directly impact potential borrowing levels.

I was in a similar situation.
Ended up doing up the house myself as much as I could, then checking out which mortgage company offered the biggest x amount, counted child benefit and maintenance as income and went with them.
Result is a big scary mortgage, but the next step up on the ladder (only The 2nd step for me, but that'll do forever!) It's a doer upper, but I can take my time as I'm not going anywhere.

Good luck, shop around and think about what extra money you have which can be counted as income.

For many people “moving up the ladder” is never going to feasibly mean “moving back to my home village / to the exact place I want to live” - but that doesn’t mean you’re never going to live somewhere you’re happier. How old are your DC? If primary school age then you can work on a relocation timeline which would see you moving elsewhere when they move to new secondary schools, for example. That would presumably give you options of other towns and villages which, whilst not your home village, could be places you enjoy living just as much in the end? A plan to work to also helps with hope, it’s something real to strive towards.

As a general rule, lenders will lend up to 4.5 X your income, although affordability calculations generally mean that those with dependent children and childcare costs will be able to borrow much less. How much equity do you have in your home?

If you’re on a low income, in debt, and know your current home isn’t your long term home then taking out additional loans to do non-necessary work isn’t a particularly good idea, it will further hamper your affordability when you look to move if you haven’t paid the debt off. But there’s a balance to be struck and it’s important that you’re comfortable where you live. What sort of work would you like to do? Places like Maker Spaces and community regen groups may be options to pick up skills to make a start yourself.