We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Negative equity - what does it REALLY mean?
SoniaM_2
Posts: 18 Forumite
My house is now worth less than the mortgage value. What does this really mean?
If I still sell the house, will I need to clear the rest of the mortgage at the same time as I complete? (i.e. find another way to fund the difference?) Or can I keep some of the mortgage outstanding and continue to repay until it's clear?
I don't really understand the whole system I'm afraid - so any pointers / information would be welcome!
(Just as a background - I'm desperate to sell, as I can't afford to live there since ex husband moved out & I'm paying for the whole place on my own - and getting further and further into debt just by being there.)
Thanks!
If I still sell the house, will I need to clear the rest of the mortgage at the same time as I complete? (i.e. find another way to fund the difference?) Or can I keep some of the mortgage outstanding and continue to repay until it's clear?
I don't really understand the whole system I'm afraid - so any pointers / information would be welcome!
(Just as a background - I'm desperate to sell, as I can't afford to live there since ex husband moved out & I'm paying for the whole place on my own - and getting further and further into debt just by being there.)
Thanks!
Re-learning the basics in life. Working out the difference between what I really need and what I want. Ignoring the latter and making sure the former is as good as I can possibly get, so I don't have to find it again. 
0
Comments
-
You've got the idea, you're in NE, and you cannot sell unless you can make up the loss with cash to your lender.
I'm not sure anyone can advise you what to do without knowing more specifics.0 -
When we had this happen to us in 1994 we had to raise the difference and fees and costs to sell. Also we needed to raise a new deposit for our next home. It took us 6 months to get the offer so we scrimped and saved and ate tomato pasta for weeks on end just to be able to sell up and move on.0
-
You Need To Go To One Of The Free Debt Charities For Help ; Have Someone Help You....It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0 -
If your mortgage lender allows you to sell, you will have to enter into an agreement with them to pay back the shortfall. Not all lenders allow this. As Geoff said, speak to a debt advisory place or the CAB.0
-
Can you get a lodger, or is it 1 bedroom?
What's your credit rating like? Would you be able to get a loan to make up the difference and pay selling fees?Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
If your mortgage lender allows you to sell, you will have to enter into an agreement with them to pay back the shortfall. Not all lenders allow this.
Just double checking as I'll be selling in NE in the new year - presumably the above only applies if you can't afford to repay the lender immediately upon completion and want to negotiate a repayment schedule? If I have the cash to give them (HSBC in my case) on completion day, surely that's ok...(?)0 -
sarah_elton wrote: »Just double checking as I'll be selling in NE in the new year - presumably the above only applies if you can't afford to repay the lender immediately upon completion and want to negotiate a repayment schedule? If I have the cash to give them (HSBC in my case) on completion day, surely that's ok...(?)
If you have the cash to clear the debt on the day of completion, that should be fine. But make your lender aware of what is going on before you get to exchange of contracts, ideally when you have accepted an offer.0 -
Thanks for all the responses. Does that mean I need my lender's approval to sell the house then? I've never heard of that before - is it just because the value of the house is less than the mortgage?Re-learning the basics in life. Working out the difference between what I really need and what I want. Ignoring the latter and making sure the former is as good as I can possibly get, so I don't have to find it again.0
-
Thanks for all the responses. Does that mean I need my lender's approval to sell the house then? I've never heard of that before - is it just because the value of the house is less than the mortgage?
Your lenders won't discharge the mortgage unless its paid off. Your buyer won't buy a house with your old mortgage still charged against it. So, you need to involve your lenders at a fairly early stage, although you certainly do not need their agreement simply to put your house on the market.No reliance should be placed on the above! Absolutely none, do you hear?0 -
Oh, and yes, it's because the house is worth less than the mortgage that this is a problem.No reliance should be placed on the above! Absolutely none, do you hear?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.2K Work, Benefits & Business
- 603.9K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards