Please advise on the cheapest way to get rid of our mortgage

MadelinesMum

Hello, my partner and I have had a fixed rate Northern Rock mortgage for the past two years. We now have a new house (a long story) and want to get rid of the mortgaged house asap. We took out a 100% mortgage (I think part of it was a loan for 5k) and also the property has decreased in value by about 15k.

My partner reckons it will cost us about 25k if we sell the house now - taking into account exit fees, depricitation and costs etc... but there must be a cheaper way for us to get rid.

Hopefully someone will have some advice for us.

Thanks
Caz x

_Andy_

Call your lender for a redemption figure, then add legal fees, estate agent fees etc.

blueberrypie

MadelinesMum wrote: »

Hello, my partner and I have had a fixed rate Northern Rock mortgage for the past two years. We now have a new house (a long story) and want to get rid of the mortgaged house asap. We took out a 100% mortgage (I think part of it was a loan for 5k) and also the property has decreased in value by about 15k.

My partner reckons it will cost us about 25k if we sell the house now - taking into account exit fees, depricitation and costs etc... but there must be a cheaper way for us to get rid.

Your partner's assessment sounds about right. The amount you owe on your mortgage won't have reduced by much in the last two years (early payments on a mortgage are mostly interest). If you sell the house at £15k less than you paid, and add legal fees, estate agents and other costs, £25k sounds about right. You can probably negotiate with the estate agent and possibly the solicitor for a lower fee, but there's nothing you can do to take away the negative equity or decrease what you owe on the mortgage.

MadelinesMum

Hi, thanks for your replies. I think this is the only way to do it. It's going to cost whatever we do.

Radiantsoul

MadelinesMum wrote: »

Hello, my partner and I have had a fixed rate Northern Rock mortgage for the past two years. We now have a new house (a long story) and want to get rid of the mortgaged house asap. We took out a 100% mortgage (I think part of it was a loan for 5k) and also the property has decreased in value by about 15k.

My partner reckons it will cost us about 25k if we sell the house now - taking into account exit fees, depricitation and costs etc... but there must be a cheaper way for us to get rid.

Hopefully someone will have some advice for us.

Thanks
Caz x

You might be able to port the mortgage which would mean not paying the redemption fees.