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Anecdotal Re Houses/debt/rentals.. Found On A Money Forum

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REALLY need advice - don't know what to do. I have also posted this on the Home/Garden forum. Sorry about the length of post!

Always lived in West Yorks. 2 1/2 years ago moved to Bridlington, because we had a dream of living at the seaside. The landscape here is lovely but the town has a VERY apathetic attitude, the population is very old and the town is run down, despite a supposed 'regeneration' program. Being a tourist area and away from major cities (our nearest is Hull - 30 miles away) we quickly found out that job opportunities are SCARCE here and when you can get a job it's on National Minimum Wage. For example - hubby used to be an advertising exec at Yorkshire Evening Post, here, all he could get was a temporary job as a binman for the first Summer and since then (after MANY months unemployment) he's been working as a Hospital Porter in Driffield, about 10 miles away.

When we moved here I had a small business making a reasonable return, but shortly after moving here it started failling and although I hung on and hung on making less and less money, finally last month I packed it in altogether and am now looking for work myself. All of this means that for the first time in our lives we are in debt. Not through being frivolous, but by having to take out a loan to make ends meet when hubby was unemployed those months, and we also for the first time in our lives had to get a Credit Card, so - we have debts of around £5000 altogether.

We decided therefore the only way to dig ourselves out of this mess was to sell our house. Our mortgage is £62,000 and house is worth about £124,000 (theoretically!) Although we've had it up for sale for 5 weeks now without a SINGLE enquiry. Estate agents say it's OVER priced (when actually all the other properties in this and surrounding streets are 5 - 15k dearer - although they're not selling either.) We thought that if we sold, we could pay our debts off, go into rented accom and have a pot of money in the bank.

Here's the problem though. I have VERY cold feet about this. Hubby and I are 47 so if we sell this house it's highly unlikely we will ever be able to get back on the property ladder should we need to. When I do get a job we will still be on poor wages so our borrowing power in the future will still only be around £44,000 (2.75 times joint wage) - which, without spending every penny of the equity on this place, will get us nowhere. (And if we did spend all the equity on a deposit in the future we would perhaps be able to afford a 2 bed flat - this is a 4 bed Victorian terrace - so it would be a BIG comedown!)

Also of course, because of our poor income cannot even remortgage this place to pay off the debts as our current lenders (A High St Building Society named after a Yorkshire town begining with H) has told us we don't earn enough - i.e our borrowing power doesn't even now cover the remaining 62,000, never mind borrowing more on top.

I also have a cat which I've had since a kitten who is like another child to me. Every single enquiry we've made about rentals have brought back 'no pets'. It would literally BREAK MY HEART to have to send him to the RSPCA! I also worry about not being able to get a rental because of our poor financial situation now. We can only afford rent and put bond on a place AFTER we have received our equity from this place. It's a real catch 22.

To improve our job prospects we would move back to West Yorks like a SHOT - that I wouldn't have a problem with - but my elderley Mother came to join us here last year and got a fantastic flat in sheltered housing. She's happy as Larry. She's 78 now. How can I abandon her and go live 60 miles away again? If it weren't for this I would sell and take the risk of going into rented in Leeds because I know we could both 'walk into' call centre/customer service jobs which we have both done before.

So that's our dilema. We HAVE to stay round here, but this debt is killing us. Every month were paying £150 to the loan and CC. Which might not seem a lot to many people, but when you're on £9,000 a year it's quite a chunk along with living expenses. When I get work things will improve slightly of course, but again - it will still mean a menial Minimum Wage job. The only solution seems to be sell our property?

BUT ..........................

This is the best house I've ever lived in. It's huge and in fairly good repair to say it's 100 years old. Our neighbours are fantastic. Not had a cross word with anyone in nearly 3 years. We are in walking distance of the town centre and daughter's school. And the thought of having to find (liveable) rentals, dealing with potentially dodgy landlords, keeping bond money back, having to move every couple of years, at our age etc etc is worrying me terribly. On the other hand we would (after paying off debts / rent / bond / house selling fees etc) have around £50,000 in the bank to 'enjoy life' a bit.

Hubby is extremely committed to going into a rental and pocketing the cash, but our age ...... what if he dies before me and I have no permanent home, in my 50s or 60s? Also I after researching the rental market round here, we're going to be paying about the same for a flat as we pay mortgage on this 4 bed house, so we're going to have to 'come down' a lot anyway. On the other hand, if we were in a rental we could perhaps relocate to Hull easily in a couple of years when daughter has left High School where employment is much better and we're still not a million miles from my Mother.

MY HEAD'S IN BITS! Don't know what to do at all.

I'm secretly hoping that we DON'T get any interest in the house so I don't have to make the decision. Not rented for many years but in my 20s and 30s I didn't NEED the stability you need in later life.

Can someone PLEASE advise???? What would you do?

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I would stay put for a bit longer, maybe try to pick up some part-time work to help pay the bills.

Take in some immigrants as lodgers?

Give it til say next spring and reassess the situation then.

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yes I would suggest getting lodgers too, especially if you are not working at present - you would have time to even provide b&b not just accomodation for them

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Heartbreaking.

Note *not* a direct pop at OP, this is a tragedy - but expect more of this as the next act unfolds; the aggregate, systemic bias at play here is wholesale, generational investment targetted at individual prosperity/ consumption with little to no thought for the needs of future generations.

From time time, and increasingly likely going forward - this will backfire as folk find themselves trapped in family homes with no family support and no surrounding industry.

Procreate above replacement; invest, directly in productive industry; don't consume what you don't need, don't buy what you can't afford from free cash flow; sacrifice, without complacency, your future for your children, and when you're done there - for your neighbours', and your grandchildren - seriously.

@ OP - what was the original plan re: mortgage servicing? If this was essentially your business, and seeking re-employment, these lynchpins appear bust; revisiting the assumptions then your options seem summarised already; fold, sell up, or try and eek out an existance such as it is; it's rough, and doubly rough that what essentially amounts to early retirement hasn't worked out - but that's life all over, full of choices and outcomes; if there's nothing you can sell (accommodation, labour, experience, produce) within the local community above your obligations (mortgage and costs of living) it's time to revisit your priorities and rebalance.

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Being a tourist area and away from major cities (our nearest is Hull - 30 miles away) we quickly found out that job opportunities are SCARCE here and when you can get a job it's on National Minimum Wage.

You'd almost think that they'd have checked on job opportunities _before_ moving.

As for lodgers, how many are they going to find in a town which they say is full of old farts, where jobs are SCARCE and pay minimum wage?

Estate agents say it's OVER priced

Who's going to pay 124,000 pounds for a house in a town where jobs are SCARCE and pay minimum wage?

Edited by MarkG

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Silly question perhaps but what is wrong with commuting to Hull 30 miles away? (sorry I don't know the area so this is probably daft).

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This awful and i'll get no pleasure in watching people like this suffer. Personally I would hang on for dear life and stay until the bailiffs dragged me out of the house kicking and screaming.

There's no way I want to be in rented in my forties, nearmind fifties.

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£62K outstanding on £120K property = 50%LTV. Go self cert, borrow another £5K on whatever half-decent fixed rate the lender's pushin' or what have you, bin off the credit card and the loan, live happily ever after. It's gotta be cheaper than payin' credit card and unsecured loan interest.

oh and, er . . . . f**k the cat . . . thihk of yerself first !

Edited by tenroom

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I dont understand what her problem is, it seems to me to be simple. They need to sell the house quickly and be thankful that HPI has bailed her out.

This isn't anecdotal... it pathetic that people with the means to help themselves still think they should have everything gifted to them on a golden plate. Its not like her debt is out of control at £5k problems seem to begin at 35K+ nowadays

60k worth of equity and still complaining, I think she should be more worried about how long it takes to sell the place and her ability to meet mortgage, while house prices will start to fall now IR are increasing, making her home more unaffordable. It doesn't seem a very affluent/prosperous area so someone will do well, to afford that whilst commuting to work, 30+miles away! Oh im sure they will be in a similar position, minimum wage, and 120k mortgage... makes sense to me!

Get rid of the house, you CANT AFFORD. And downsize, or rent, and enjoy the equity whist you watch the prices fall! Then with the remaining equity, buy a new house in a few years! Why so much stigma, just rent for gods sake!

Rant over!

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I dont understand what her problem is, it seems to me to be simple. They need to sell the house quickly and be thankful that HPI has bailed her out.

This isn't anecdotal... it pathetic that people with the means to help themselves still think they should have everything gifted to them on a golden plate. Its not like her debt is out of control at £5k problems seem to begin at 35K+ nowadays

60k worth of equity and still complaining, I think she should be more worried about how long it takes to sell the place and her ability to meet mortgage, while house prices will start to fall now IR are increasing, making her home more unaffordable. It doesn't seem a very affluent/prosperous area so someone will do well, to afford that whilst commuting to work, 30+miles away! Oh im sure they will be in a similar position, minimum wage, and 120k mortgage... makes sense to me!

Get rid of the house, you CANT AFFORD. And downsize, or rent, and enjoy the equity whist you watch the prices fall! Then with the remaining equity, buy a new house in a few years! Why so much stigma, just rent for gods sake!

Rant over!

Bit harsh, mate !

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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