Selling in Neg Equity

CPS

Hi, looking a bit of advice. Ill obviously phone my mortgage lender (Standard Life) soon but looking to see if anyone on here has any experience.

My apartment is up for sale (bought for £141k, prob would sell for £110k). I have checked with SL and cant carry my neg equity over to a new mortgage if I move house, so I assumed if I sold I would have to pay SL the difference (e.g. £31k, which I can afford) and then find a 10-15% deposit for my new place which I cant afford. Was speaking to a friend last night who said he is doing the same thing but his lender (Bank of Ireland) only required him to give a 10% deposit on the new amount (if he was borrowing an extra £50k he would only have to give them £5k deposit) which would give me a chnce to make my move.

Im not hopeful as SL dont appear to be too flexible these days but would be good to hear if anyone else had any experience/advice?

Cheers

lauraaurora

What's your reason for moving?

CPS

Hoping to start a family. We bought at end fo 2006 to 'get on the ladder before prices become to high. Silly i know but its done now.

We do have 2 bedrooms but its a small apartment and can afford a bigger mortgage and to pay off the Neg Equity, just not another £20kish deposit on top of that.

U may say we should just sit tight and see it out but any further drops and we wont be able to pay off the Neg Equity and will be there for years....

But in answer to your question, we dont have to move, just want to (while we can!)

paulfaz

The problem you have is actually selling your place at the price you think it is worth.

The NE is not an issue as long as you look carefully at the price you are paying for your next house - make sure that price has come down from 2006 levels by at least the same amount.

seraphina

paulfaz wrote: »

The problem you have is actually selling your place at the price you think it is worth.

The NE is not an issue as long as you look carefully at the price you are paying for your next house - make sure that price has come down from 2006 levels by at least the same amount.

Yes, the NE is an issue as they can't port their NE to their next house, and with NE they don't have any deposit for the new place, and will not be able to get 100% mortgage in the current climate, esp. with NE.

So it doesn't matter how cheap the next house is!

CPS

After getting myself into this NE mess, dont worry about me ensuring my next place is at the right price. I am also aware that I might not get what i want for my place but £110k or so should do it, it will be £20k cheaper than others on my street...but thats not my point or question...

Does anyone have any experience that when they are getting a bigger mortgage and moving house that you only pay a deposit on the new amount rather than the whole amount if u stick to your lender?

Thanks

pixiepie99

CPS wrote: »

After getting myself into this NE mess, dont worry about me ensuring my next place is at the right price. I am also aware that I might not get what i want for my place but £110k or so should do it, it will be £20k cheaper than others on my street...but thats not my point or question...

Does anyone have any experience that when they are getting a bigger mortgage and moving house that you only pay a deposit on the new amount rather than the whole amount if u stick to your lender?

Thanks

It's the whole amount.