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Advice Please - What would u do?
CPS
Posts: 172 Forumite
I will try and give sufficient details without boring you.
Whilst I do not NEED to sell, would really like to as just have a 2 bed apartment (in NI) and want more space to start a family etc. Bought near the peak at £141k, 95% mortgage IO. Have apartment up for sale at £125k. It would prob only sell for about £110k (even if it didnt lets use that as the price). Have gone through many options in my mind and would like to try and take advantage of any Spring Bouce etc before (in my opinion) there are further falls. We have over £30k in savings which have bene earmarked for future house moves I reckon I have 2 options:
1. Take a gamble. Put my place on market for £115kish. If I get a buyer, then use all my savings to pay off Neg Equity. Rent for a year or 2 to build up savings again and pray we dont miss the bottom of the market (we both have secure, reasonably well paid jobs). Would get us out of this mess and put us back in a strong position as FTB but seems a big waste of money/savings.
2. Get on with my life and stop stressing about it. Just start overpaying the mortgage (we can now afford to) and one day in a few years we will be able to put our place back on at a realistic price and sell without using all our savings which would then go into a deposit for the new house. Problem with this is it could take years.
All advice appreciated. Renting our apartment out is not an option as the rent would be well short of our mortgage and there is no guarantee of renters...
Whilst I do not NEED to sell, would really like to as just have a 2 bed apartment (in NI) and want more space to start a family etc. Bought near the peak at £141k, 95% mortgage IO. Have apartment up for sale at £125k. It would prob only sell for about £110k (even if it didnt lets use that as the price). Have gone through many options in my mind and would like to try and take advantage of any Spring Bouce etc before (in my opinion) there are further falls. We have over £30k in savings which have bene earmarked for future house moves I reckon I have 2 options:
1. Take a gamble. Put my place on market for £115kish. If I get a buyer, then use all my savings to pay off Neg Equity. Rent for a year or 2 to build up savings again and pray we dont miss the bottom of the market (we both have secure, reasonably well paid jobs). Would get us out of this mess and put us back in a strong position as FTB but seems a big waste of money/savings.
2. Get on with my life and stop stressing about it. Just start overpaying the mortgage (we can now afford to) and one day in a few years we will be able to put our place back on at a realistic price and sell without using all our savings which would then go into a deposit for the new house. Problem with this is it could take years.
All advice appreciated. Renting our apartment out is not an option as the rent would be well short of our mortgage and there is no guarantee of renters...
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Comments
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Personally I would say (2). If you do (1) you are just throwing a load more money at a bad situation in an effort to avoid further drops which may or may not happen; who knows?0
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If you are on an interest only mortgage, you will be in negative equity either way, can you switch to a repayment mortgage and overpay with your savings in order to get your LTV down?It's not easy having a good time. Even smiling makes my face ache.0
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Our fixed rate ends in October so we are continuing to save until then and then go repayment (I guess what you are saying is we shoudl start overpaying immeditately to get the LTV chase started...) We can prob half the number of years we are paying the mortgage off or just use our savings as a one off payment to bring the amount we owe the bank down and make our payments smaller.
Doing either of these will still leave us some time until we are in positive LTV territory0
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