house equity

[timmoff]

Again I'm after advice.....albeit not strictly about business!!!

Last year I bought a house with my brother for 125k... similar houses in my area and now on the market for around 140k.

We both have debts that could do with being sorted out. I have several credit cards (from my uni days) as well as a loan. It's all a bit messy and my credit rating is awful. I'm thinking that I may suggest getting a home owner loan to free up some equity to cover our debts, and then sell the house later on to repay the loan.

Has anyone else been in a similar situation?? what do people think??

I would really appreciate any suggestions/ideas

Thanks

Tim

[moneyman]

you realy have to have a long hard think.
you do get better rates if you put up your house as collateral but then you can lose it if you just go and spend money again.
once you sell and buy a house again you are paying estate agents 3% then stamp duty 2% then set up fees for the mortgage. it all mounts up to 5 to £10k minimum which is a lot. then add on a **** rate of interest because you are a bad risk. there is also the chance they wont lend you the cash to start again.
isn't it possible to pay these cards off? say you need £5k give up 6 months of fun and you will have the problems behind you. do whatever it takes. cut the booze,fags, going out, ready meals. just slum it for six months. stick every spare penny into the cards. sell everything you can get your paws on on ebay for yourself and take 30% for all your mates stuff. just graft and graft. even get a second job. 3 hours per day, 5 days per week for six months on minimum pay is £1800. £20 per day paid over is £2400. just try to get £20 per day.
£100 per week for 6 months. its not difficult. you just need to start.
in 6 months you will have your house and no problems.

[danrostron]

Hi,

Thanks very much for your views - its sometimes difficult to look at things in a different light!! I think some extra work would perhaps be a good idea - I'll definitely look at doind something like that I think.... really thanks again... much appreciated!!!!!!!

Cheers

Tim

[natasha]

Very sound advice from Money man!