Selling our house after 1 year

M

morpheus

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hi all,

were seriously thinking of trading down, the mortgage is crippling us, we paid 325000 a year ago as FTB's and now are considering selling and moving back with parents until we can find and save for a smaller home with smaller mortgage.

weve a 35 yr fixed rate (for 1 yr) mortgage and its costing 1360 per month.

What do we need to consider about this?

We want to do it as cost effectivley as possible, we are right down to the bone regarding money each month and cant afford much extra to "enjoy" the house, even moving jobs is out of the question as I cant get on top of payments to save even 1 months mortgage (as when you change jobs there is usually a back month to work before you get paid).

Its quite depressing even coming home for both of us and weve little or no interest in doing the place up, its pretty much as it was when we moved in.

We are certain we will sell it, we wont make a profit and will have to offer it for the price we bought at since there has been no increase in prices lately.

What costs am i likely to incur and where can i possibly save?

What should we look out for?

Is renting the place out for a while an option as it will allow us to save some monthly payments? We dont really want to do this, we'd rather sell and be done with it.

regards
 
morpheus sounds like a tough predicament, could you rent a room to help out, or take in summer students? could you go interest only for a while? hope it works out for you guys.
 
not sure, not unless it was someone we knew.

i think that at this stage, because we're so worn out with payments and direct debits (life assurance, cars, weekly shopping, upkeep of the house and garden) we really just want a "clean extraction" from the mortgage.
 
the easy thing is to give up and it may well be the wisest but i would suggest you really explore other options like the diary of your spending for a month, re-evaluating all your direct debits on a do we need it / can we go without it etc.
If you move home you could be kicking yourselves that you had a house and let it go - then again it might be the right move - only you can decide.
 
I presume this is a last resort? Have you been through your budget and ruthlessly gone through your spending? Are you taking full advantage of tax reliefs, mortgage interest relief etc.? Is there no way you could think of switching jobs and maybe getting a float from a family member for a month until your new salary kicks in? What are your cars like? Do you need two? Could you downgrade one/both and free up even a couple of grand to allow yourselves a cushion?

The first year is always tough with a mortgage - it does get easier as your income increases. I know that interest rate rises are really hurting at the moment, but they won't keep going up forever. It sounds like the daily cost of living on your own has really surprised you - it's unfortunate, but for most of us, we had far more disposable income when living at home and earning than we do when paying for our own place.

I would be very reluctant to sell after only a year - in today's market, it is unlikely you will get even the price you paid for it, and then you need to factor in quite high selling costs - estate agent fees, solicitor's fees etc. You could end up seriously out of pocket.
 
yeah i agree with nelly maybe even go talk to mabs, could you talk to your bank about interest only option don't know how much that would be but might take the stress off. Have you looked at how expensive renting might be, prices are pretty steep at the moment so you might not save a whole lot?
 
And remember that if you buy a second hand home next time, you will have stamp duty to pay on it.
 
Nige said:
And remember that if you buy a second hand home next time, you will have stamp duty to pay on it.
Click to expand...

From previous post he paid stamp duty on this one.

OP - why not sell the car you bought in Jan? Doens't seem like such a wise decision bearing in mind the rate increases were well forecast.
 
well car payment is necessary, i need decent (as in good on petrol and low on maintenance costs, not looks!) car for work, i drive quite a bit, girlfriends car is pretty much the most basic of cars, its a seicento and she needs it as she works in different clinics for the eastern health board and can be asked to go anywhere any day.
 
morpheus said:
well car payment is necessary, i need decent (as in good on petrol and low on maintenance costs, not looks!) car for work, i drive quite a bit, girlfriends car is pretty much the most basic of cars, its a seicento and she needs it as she works in different clinics for the eastern health board and can be asked to go anywhere any day.
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What year is the car? How much are the payments?

A 10 year old 1k car can be low on maintence costs and petrol.
 
Actually, if your girlfriend is doing alot of travel for work, it might be better value from a mileage payment perspective, for her to drive a bigger car.
 
You could think of renting the house, and moving back in with your parents as you mentioned. The rent would cover the majority of your mortgage payment, and it would definetely ease the financial pressure.Also it's not a great time to be selling.
 
If they rent the house out (other than under the rent-a-room scheme) there will be a stamp duty clawback.
 
I always thought that there is a clawback in stampduty (higher rate) when you sell in the first 5 years if you bought as FTB? Or am I mistaken?
 
Mynydd said:
I always thought that there is a clawback in stampduty (higher rate) when you sell in the first 5 years if you bought as FTB? Or am I mistaken?
Click to expand...

the clawback arises if you RENT the property in the first five years. There is no clawback if you sell it.
 
Mynydd said:
I always thought that there is a clawback in stampduty (higher rate) when you sell in the first 5 years if you bought as FTB? Or am I mistaken?
Click to expand...
You are not alone. Judging by comments here on AAM and elsewhere it seems like lots of people make this mistake!
 
Hi Morpheus,
we are in a situation like yourselves - we stretched ourselves when interest rates are low and are now really feeling the pinck - our mortgage has goone up 500pm:(
The house we have needs work but is convenient for our work and social lives...
We have looked at it this way - if we were renting - or in our first place (a cheap house in a bad area) we would have plenty of money to splash around! We sacraficed this for a house in a better area...
We don't have a lavish lifestyle, I have cut up the credit cards, we do our best to live within our means.... we have a weekly cash budjet wheich we try and stick to...

In a couple of years time your wages will have gone up and the mortgage will be easier..Stick it out - after fighting to save the deposit and on the ladder jumping off at this stage would be foolish....

Stick it out, your not going through anything that new buys like ourselves are facing:(
 
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