Being in debt feels incredibly stressful, and it can happen to anyone. Whether it's because of credit cards, taking out payday loans or coping with significant life changes, you can end up deep in debt before you even know it. if you're currently struggling with debt, you might be wondering if you'll need to sell your home - and whether it's a good idea to do so. For example, can you sell up fast enough to get the kind of money you need within the next weeks or months? The answer partly depends on how you approach selling.
In this guide, we'll look at reasons for selling to pay off debts and highlight some particularly important considerations to remember when trying to make the right decision about whether to sell. We'll answer the questions people most often ask about selling to a property buyer in this context, giving you a clearer picture of what you can expect.
Whether you've been put under pressure by recent unemployed, a relationship breakdown or a bereavement, it's easy to get into a situation where you're in serious debt. And even if you've managed to save in the past, you might still find that you just don't have enough to cope with that debt. In a situation like these, selling your home or flat could give you the long-term solution you need.
If you need to pay off debts, selling your property can give you a quick and substantial source of money to do so. However, before you make the decision to sell it's vital to take the time to consider the longer-term consequences of doing so.
In particular, ask yourself the following: If I sell my home, where will I live? Will I need to stay with family or friends? If I rent, can I afford a deposit? Or will I be able to downsize and buy a smaller home?
At Property Buyer, we're aware that if you need to sell your home to pay off your debts, it's often an urgent situation. If you're not able to make the sale quickly enough, your debts can become even bigger and you might find yourself unable to pay off bills or loan repayments.
Consequently, we're here to make selling your home quick and easy, ensuring that you get money back into your account as fast as possible. All you need to do is give us some basic details, and we'll soon be in a position to make you a cash offer.
As noted above, there are many different reasons why you might have ended up needing to sell your property to pay off debs. However, making the right decision about a sale partly depends on how and why you've ended up in debt, so let's consider some of the most common reasons and look at how selling can offer the ideal solution.
When your mortgage payments feel too big, this is a clear sign that selling is a wise choice. If you have enormous mortgage payments, all of your income will go towards these and you'll have no money left over to deal with any accumulated debts. Experts typically suggest that your monthly mortgage should be 25% or less than you earn in a month. if you sell up and get a more manageable mortgage or rental, debt may suddenly seem unmanageable.
Some people are better at managing money than others, and if you've not quite got the hang of this yet then it's easy to end up in a position where you feel like you need to sell up in order to pay debts. Often, this is a helpful wakeup call, motivating you to learn new, more effective strategies for money management once your debts are paid off and you're in your next home.
Sometimes, the unexpected leaves you suddenly in debt. Whether you're hit by a short-term financial issue such as a necessary large purchase or you're dealing with a long-term change like a relationship breakdown or divorce, you might suddenly realize you need to sell your home in order to cope with debt. It's always smart to look at other solutions, but when your home is your biggest asset converting it into cash can seem like the obvious choice.
If you sell to a property buying company, you will get less than the average market value for your house. However, you'll also get immediate access to the cash that you need to start paying off your debt. In addition, don't forget that selling through an estate agent leads to extra costs. We won't charge you for the necessary valuations, and we'll even provide you with free legal representation.
In most cases, selling your home means that you will have to move out. However, there is a slim chance that you might be able to rent the property and continue living there. This depends on whether you can make a suitable arrangement with the new owner.
If you sell your home, it may have less of a direct effect on your credit rating that than you might expect. If you already have a generally positive credit history, selling your home just now shouldn't do any active damage. And if it helps you pay off the debt that is dragging you down, then the overall impact on your credit should be positive.
If you paying your mortgage payments on time becomes a challenge, selling your property is a sensible move. Until you sell your property, as well as the building's insurance and other costs, you remain responsible for the mortgage payments too. When you sell, you must pay off the outstanding balance of your mortgage from the proceeds. If you sell at a value lower than the outstanding mortgage amount, this is known as negative equity and unfortunately, you are still liable to repay this at the same rate borrowed.
Yes, you can. Provided you can afford to sell your property, you can do so at any time. However, whether or not you're planning to buy a new property, you're likely to incur some costs if you want to redeem some of your mortgages. This means it's smart to check the terms of your property's mortgage. Regardless of what you find, selling your home to a cash buyer is one of the most effective ways to keep overall costs down.
This varies by circumstance, but we're experienced in working with people who need to sell property extremely quickly. In urgent cases, we can complete the whole process within a few days. If you get in touch and tell us the details of your situation, we'll be able to give you an estimate of how long the sale will take and you can decide if our property buying service is right for you.