Need to move house.

crobinson_3

We need to move house for a number of reasons but the main one being that due to some new additions to the family we have out grown our exisiting property.

We have the following commitments with the property:

Mortgage (interest only payments) £650.00 PCM
2 secured loans - £600.00 PCM
Unsecured Loan with the Mortgage company - £150.00 PCM

Total Mortgage value - £120,000
Total secured loan value - £30,000
Estimated value of the house - £140,000
Negative equity ammount - £10,000

We have no credit cards or other loans at present but the likely hood of getting a descent loan is low due to some mismanagement of money 2 years ago, we have not missed a mortgage or loan payment for 2 years but came close to losing it all in October 2007

I feel if we sell and move into rented housing we will be able to reduce our outgoings by about £400.00 per month if not more by the time you add in all the little things but that is the aim, the only issue we have is that we dont have enough value in the house to cover everything, we have about £3K in savings to help with the cost of a sale and deposit for renting but that wont go far.

Does any one have any surgestions about how we maybe able to work it, if we did sell who would want their money first? The dates were as follows:

Mortgage - 05/2005
Secured loans - 08/2006

Do you think if we did sell the mortgage company would move the rest of the mortgage into the secured loan, we would still have this around our necks but interms of a cost per month and a interest POV it is low compared to the others plus we could pay more per month to get rid quicker.

Any thoughts welcome.

poppysarah

secured on what though? Do you have other property or possesions?

crobinson_3

The two loans are secured against the property meaning it pushes it into negative equity, we dont have any other houses and the cars etc belong to the company we work for (Cant really sell them :rotfl:)

silvercar

Bottom line is that you can't sell unless you get the mortgage or secured loan company to agree to transfer some of a loan to an unsecured loan. Only other option would be to get a new unsecured loan to make up the difference. Have you also budgetted for estate agent fees and legal costs and the all important HIP?

Investigate the options before you waste time and money in trying to sell your home.

crobinson_3

Thank you for the help, i am off to do some research.

lincroft1710

First thing (if you haven't already done it) is to approach all your lenders and discuss your plans with them, they may not be agreeable.

HIP, EA's and solicitor's fees will easily swallow most if not all the £3K, then you have moving costs as well. There is no guarantee you will get £140K and it could take well in excess of 6 months to sell the house.