# advice re selling house to pay off debts



## snax123 (18 Feb 2009)

Age: 38
Spouse’s/Partner's age: 37

Annual gross income from employment or profession: 48000
Annual gross income of spouse: on career break (civil servant)

Type of employment: e.g. Civil Servant, self-employed civil servant

In general are you:
(a) spending more than you earn, or
(b) saving?
ans: a

Rough estimate of value of home 260000
Amount outstanding on your mortgage: 225000
*What interest rate are you paying? 5.6% fixed for next three years*

Other borrowings – car loans/personal loans etc 
bank loan 19000 at 560pm
c u 33k at 350 per fornight (used to clear cc debts )
family loan 7k. - 50 per week

Do you pay off your full credit card balance each month? have agreement for 80 per month on remaining balance
If not, what is the balance on your credit card? 4k

Savings and investments:none

Do you have a pension scheme? gov pension

Do you own any investment or other property? no

Ages of children: 5, 3 
Life insurance: life policy - 130 per mth - want to switch to mortgage protection only


*What specific question do you have or what issues are of concern to you? *
*we have huge debts of 55k, would we be better to sell house if we can - pay off debts and rent for a few years and then try to buy*


*p.s. work won't let me return as i signed up to career break until 2011 so i can't fight case until then.*


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## vandriver (18 Feb 2009)

Just a few thoughts -how realistic is your house valuation?Have you had it recently looked at?Is there any penalty for redeeming your fixed interest mortgage early?Have you looked for any temporary work to increase family income?Do you have any assets to sell such as a second car?


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## snax123 (18 Feb 2009)

house is valued at approx 280000 but auctioneer suggested pricing realistically to sell , i.e. under price to try to sell quicker. It will cost us to break out of mortgage fixed rate but just wanted opinions before i contact bank. 
don't have a second car. 
can't get a second job as i need p45 and i can't get that from my employer as the terms of the career break is that i don't work somewhere else, it's given on basis of say Stay at home mum, studies, working abroad voluntarily.


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## aetius (18 Feb 2009)

You don't need a P45 for a second job. What about those with second and third jobs etc ?


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## PaddyW (18 Feb 2009)

A p45 would mean that you have left your job.


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## Eblanoid (18 Feb 2009)

snax123 said:


> can't get a second job as i need p45 and i can't get that from my employer as the terms of the career break is that i don't work somewhere else



You can have multiple PAYE jobs without your employers knowing it. See here:
http://www.askaboutmoney.com/showpost.php?p=783102&postcount=19


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## Mpsox (18 Feb 2009)

You say on your OP that your debts are 55k, however when I added them up I got 63k. However, regardless of the figure, it is still a lot of money

Firstly you should look at your tax situation, is your other half using your TFA for example given that you are not working and are you claiming for everything you can and should be claiming

It may be worth your while going to the Credit Union to see if you can restructure your loan there to take some of the monthly pressure off you. Likewise there could be merit in talking to your mortgage provider to see if they will allow you a payment break or revert to interest only for a while to allow you to clear your debts

I'd only recommend selling as a last resort, it could unsettle the kids to move and if you want to buy again, you'd have to save for a deposit and stamp duty

You should visit MABS, they can be very helpful


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## sadie (18 Feb 2009)

Also might not be a great idea to reduce your life cover, depending on what you are getting for the 130 a month. You need to provide for your kids till they are adults if something happened to your or/and your spouse. The usual 4 x salary death-in-service cover may not be enough for the remaining spouse to manage on if there are debts on top of the mortgage repayment? Not sure how the gov pension works for the remaining spouse, maybe I'm being overly cautious.


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## snax123 (18 Feb 2009)

Thanks for all the advice. We appointment with MABS tomorrow morning, just want to try to get this all sorted. Thanks for advice re upheaving the kids. our dd has just started school and it was a very hard school to get her into, hadn't thought about those things.


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