Already made my mistake, advice on sell/buy

Reason123

Hello
I bought my first house in Aveley, Essex last year for 143k.
Its a 90's built, 2 bed with garage, no garden, double driveway in need of full resto. It was actually up for 160k, had a buyer of 156k, but fell through before contract signing. After some time on the market, price brought down to 150k, then 147k. Thats when i come in and after negotiation bought for 143k

Since ive been here, all new carpets have been laid, and all walls/ceilings/woodwork have been painted. In realistically to make perfect also needs and new bathroom/kitchen/double glazing. But they are adequate.

Here comes my mistake. I had a 13k loan and no deposit. So with good old Northern Rock they give me 156k for a 2k fee (so now 158k). 6.9% interest only over 35 years paying just over £900 per month. Only 2 year fixed....Ive already had 'what an idiot' comments, i agree but dont need any more. Just need advice.

So ive been here a year, and want to move, mainly due to neighbour with dogs, but also to a bigger place.
My place as a guess (on looking in the area) is worth about 140k.
Is this tough luck as i need a further 18k to pay off the mortgage and a 10% deposit for a new place? Or could i transfer my current mortgage adding if need be?
I afford my mortgage plus bills with no problems (currently!)

Also what will happen with my rate next year? As il be in negative equity even more? IE not being able to re-mortgage?

Cheers

ruggedtoast

Id prolly post this over in the mortgage board, some mortgages are portable, some arent.

Doozergirl

You can't buy again without a deposit.

You either stay where you are or try to find a personal, unsecured loan to cover your negative equity then sell and rent. You don't have the option of buying again any more

With an £18,000 personal loan, the repayments are going to be considerable. You're probably best off staying where you are. The SVR for Northern Rock right now is 7.49% so it will be a bit more expensive when you come off your fixed rate.

Optimisticpair

Did you know that there is website that tells you details of prices down to the exact address. As this is open to public viewing you might like to edit your post.

SquatNow

Don't assume interest rates/bills etc wont rise.

Also, don't assume you'll actually get £140 for it.

While an EA may say £140k, you might only get £130k. With nothing shifting in the current market, you'de probably have to knock a HELL of a lot off it.

Basically you're screwed. You will live in that house for the next 34 years, or until you get far enough behind on the mortgage or other loans in order to get reposessed.

An alternative is to hand back the keys and then go bankrupt.

Doozergirl

Optimisticpair wrote: »

Did you know that there is website that tells you details of prices down to the exact address. As this is open to public viewing you might like to edit your post.

What to spend hours trawling through all the house prices in town to find out that someone lives in a house?

It's slightly different to giving us their exact address and telling us where they keep the car keys.