want to move mortgage with northern rock to another property but negative equity

jake_loves_the_rock_NOT

Hi there we had a together mortgage with nortern rock just over 4 yrs ago. house was 200k we had motgage of 190k and 30k loan with them.we then had a child and wife went part time, 12 months later we had a 30k secured loan with northern rock. when deal finished after 3 years payments shot up by 100s of pounds, was same time northern rock had all its problems. we went interest only but still couldn afford it. so last january we went into rented accomodation with the intention of going BR as we had other debts too.
but then interest rates fell dramaticallly. and we decided to move back into our property. at reppossesion hearing we came to an agreement with them to pay back arreasof 12k at 170 a month as well as normally payments, since then areas have been put on length of mortgage. making payments easier. we have also about 5 ccjs.meaning cant go to another lender!

our house is worth at realistic price 230k owing northern rock 262k altogether .
now our house is too small so we want to move to another property the same value or less as our current one. with northern rock being in same position if went to another property but they say we cant unless give them 30k or when house not in negative equity.

we considerin going br again as house to small as might be having another child.

is there any way round this pls help!!!

p.s i have just turned 40 so moving our mortgage or stayin here are our only options of having some security over next 25 yrs

aslo as far as i aware 30k loan is unsecured but was part of together mortgage.

many thanks a desperate jake!!!!:(

beecher2

There's not much security in your position right now though. Is selling up, paying off the mortgage and renting while paying off the unsecured loan an option? The interest rate you'd pay would go up though.

I don't get the sums though - mortgage 190k plus 30k loan is 220k - where does the other 42k come in?

Tuscan

other problem will be that northern rock will still treat the move as a new mortgage application and will credit score you, with 5 ccj's theres very little chance of getting another mortgage at the moment..

picardygirl

beecher2 wrote: »

I don't get the sums though - mortgage 190k plus 30k loan is 220k - where does the other 42k come in?

From reading the OP is it from mortgage 190K plus 30k together loan .... then additional 30k loan plus the 12k arrears ... totalling 262K?

jake_loves_the_rock_NOT

Yes we borrowed 220k at start (190k plus 30k unsecured) then a further 30k secured 12 months on, plus 12k arreas last year totals 262k.

have we any hope?:(

beecher2

I think you need professional advice really as at the moment you're just treading water with no clear path out of this. When interest rates go up you'll be in a worse position. Moving mortgage or staying in your house really aren't realistic prospects, as far as I can see so you need to look at other options like renting.

Have a look on here http://mortgagehelp.direct.gov.uk/ and maybe you could contact Shelter.