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Switching mortage lenders with possible negative equity
efchutchy
Posts: 21 Forumite
I split up with my ex girlfriend last year and took on the whole mortgage. Currrently paying £638 p/m at a rate of 5.49% interest. I am currently renting the house out through an agents but the house is only earning me £450 p/m and I pay the agents £50 p/m for management fees so in reality I am losing £238 p/m and with insurance its around £260 p/m in losses which I'm struggling with at the moment with other outgoings such as loans, rent at current place, £300 p/m petrol for commuting etc.
What are my chances of switching to another lender? I've only been paying the mortgage since August 2008 so as you can imagine with the house prices falling I've not paid much off at all because its estimated my house is now only worth £115,000 when I purchased it for £128,000.
Ideally I'd like to switch to a lender that would only cost me £450p/m month max, but I feel my chances are slim. I'd be willing to take a hit as in penalties, fees etc as long as I get away from this high rate (still got about 2 years left on it).
Do I have any other options other than switching lenders?
Any help would be greatly appreciated.
Thanks.
What are my chances of switching to another lender? I've only been paying the mortgage since August 2008 so as you can imagine with the house prices falling I've not paid much off at all because its estimated my house is now only worth £115,000 when I purchased it for £128,000.
Ideally I'd like to switch to a lender that would only cost me £450p/m month max, but I feel my chances are slim. I'd be willing to take a hit as in penalties, fees etc as long as I get away from this high rate (still got about 2 years left on it).
Do I have any other options other than switching lenders?
Any help would be greatly appreciated.
Thanks.
0
Comments
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Your chances are pretty much zero, even if you weren't in negative equity the best mortgages on the market wouldn't be available to you.
You're not losing £260 a month as you still own the house.
Does your lender know that you are renting the house out?
Maybe you could consider moving back into the house and having a lodger or two?
You might be willing to take the hit on fees but nobody is going to lend you more than your house is worth PLUS the money for the fees."You've been reading SOS when it's just your clock reading 5:05 "0 -
Switching lenders isn't option with no / little equity,0
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Was your girlfriends name actually removed from the mortgage officially?"You've been reading SOS when it's just your clock reading 5:05 "0
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sammyjammy wrote: »Was your girlfriends name actually removed from the mortgage officially?
Yep via a solicitor0 -
sammyjammy wrote: »Your chances are pretty much zero, even if you weren't in negative equity the best mortgages on the market wouldn't be available to you.
You're not losing £260 a month as you still own the house.
Does your lender know that you are renting the house out?
Maybe you could consider moving back into the house and having a lodger or two?
You might be willing to take the hit on fees but nobody is going to lend you more than your house is worth PLUS the money for the fees.
Not wanting to move back in as there's far too many bad memories plus the house is located very close to all her family so I'd never get peace
Yeah I had to get permission from Halifax to let it out and thankfully they agreed0
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