New Mortgage Advise please

Jungle_Jane_2

My partner owns the flat we are currently living in and it is getting a little cramped. We got the flat valued by an estate agent and says that we should be selling the flat for between 110-120k. We paid 146k for it in June 2006. At the moment we have saved up £32,000 and was hoping to use that to put as a deposit and fees for a new home (we looked at a home recently for 220k and assumed that we could afford it). But we are now thinking of using this money we have saved up to use to fill the void of the flat.

We were wondering if there was anyway that a mortgage company could help us out such as a 100% mortgage. We are currently with nationwide and have been told of a 125% mortgage, but the repayments (£1441) are too high and we could pay all the negative equity for the flat off, instead of taking out a loan for something we could pay off. Was wondering if anyone out there had managed to get a 100% mortgage recently or if it was still possible?

It has also been suggested that we could let out the flat and get another mortgage on the side for the new home. Was wondering if anyone out there has done this successfully? Our repayments our currently £520.

Any suggestions would be really appreciated.

Thank you.

beecher

No 100% mortgages out there, and you may not be allowed to let your flat out since you're in negative equity. Phone up Nationwide as a first step and see what they say regarding giving to permission to let the flat. Otherwise you're looking at saving another £20,000 plus and hoping the flat doesn't further diminish in value.