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Moving home with negative equity.
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You are talking about vendor gifted deposit business and there is no lender accepting such cases now.
Second mortgage? Can you describe what you mean by this term?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
RobHolyhead wrote: »Something my wife actually came up with, If we could put in an offer in for the house we have seen at 90% value (and have it accepted), is there any way to go through without actually having a deposit?
No, sorry. The "V" in the LTV calculation won't be higher than the purchase price. Broadly, the lender will say that if the property was worth more than you paid, somebody would have come along and offered the higher amount - so you can't have paid only 90% of the true value.
(That doesn't always apply with transactions between family members, or right to buy properties - lenders are sometimes happy to believe that your mum sold you her house for less than its true value).0 -
If you get consent to let on your current home then that mortgage debt, although needs disclosing on your new app, can be offset against rental potential for self funding calculations. It will down to Halifax CTL rules on -ve equity. Pretty sure it's ok up to 120% LTV. If your on a fixed deal they will let that run until it's end date. If on their SVR HVR then you'll have to come off these.
Your new lender will require written confirmation letting has been agreed by Halifax.
If CTL is rejected your incomes will need yo cover both mortgages.
All in all a couple of options, not easy by any stretch of the imagination, but doable if all factors stack up. Both options I think are only available direct so get on the blower first thing to sound them out.0 -
Hi all,
Just to update, and a question,
We have been to see the house we want and are prepared to put an offer in, there is no chain, however we have no deposit, is it possible to put an offer in on the terms that if the seller accepts they will give us 6 months to save for the deposit before moving forward? obviously its fair enough if the seller gets another offer in that time frame. and also based on my current mortgage been granted consent to let which looks favorable at the moment.
Thanks
Rob0 -
[QUOTE=RobHolyhead;60085717
We have been to see the house we want and are prepared to put an offer in, there is no chain, however we have no deposit, is it possible to put an offer in on the terms that if the seller accepts they will give us 6 months to save for the deposit before moving forward? [/QUOTE]
Would you accept an offer on such terms? With no guarantee that the deal will even complete.
The vendor will either expect you to be in a position to complete the transaction in a reasonable time scale. In order to accept the offer. If you are not proceedable then expect a decline.0 -
The vendor will either expect you to be in a position to complete the transaction in a reasonable time scale. In order to accept the offer. If you are not proceedable then expect a decline.
Sorry, I should have explained better.
I have Met the seller as he showed us round the house and is fully aware of our current situation. I want to make an offer just to backup how serious we are about the the house, but I don't want him to start arranging solicitors and paying for them for the Halifax to turn round in 5 - 6 months time and decline me a mortgage.
Cheers
Rob0 -
I am/was in a similar position. Married and would love to start a family but negative equity has put pay to that.
Lloyds TSB suggested we get consent to let, then simply save a new deposit.
Instead we've just saved to pay off the negative equtiy, and have a deposit left over. So we can sell our current house. Luckily our negative equity wasnt much.0
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