Help negative equality and new home

mbga9pgf

Credit Check - Big Brother is watching.

You will also need to declare any loan on your mortgage application. To not make a declaration is illegal and is mortgage fraud. Welcome to the post-credit crunch apocalypse where you have to earn a loan these days.

makingbetter

It still buys the same though- so in a very long period of time you'll need more than 19k (In 7 years the house is not likely to cost 130k)

mbga9pgf

It doesnt if house prices are lower in 7 years though



We havent even had the full crash yet in this country.

The OP needs to bear in mind, where is he going to get a 19K unsecured loan from at anything like the interest rates that will make a 19K unsecured shark loan plus mortgage on a full home financially viable? 90% LTV mortgages are hardly affordable at the moment as it is!

That isnt taking a risk. Its financial suicide, a sure fire bet to bankrupcy and why the banks wont touch the idea with a barge pole.

makingbetter

well thats a matter of opinion and not worth debating (IMO)
but house prices don't matter all that much to the OP since if I understand correctly they're selling their own house before buying another so a gain or loss will be felt both sides- but they still have a £19k shortfall either way. It would be great for them if the £19k was reduced, problem solved (if their flat kept its value but the house they were buying fell for example)

mbga9pgf

This is why I reckon the OP selling, moving into rented and saving as hard as possible is the best option. If owning a house is that important. If its not, stay put and make overpayments.

ILW

If things are that tight that saving £200 per month is difficult, I cannot see how taking on an extra £40k of mortgage is going to be affordable.

makingbetter

ILW- that was my example, not the OPs, sorry to cause confusion.

mbga9pgf

And this is why we need to have lower prices in this country. The whole housing market is F*cked.

poppysarah

makingbetter wrote: »

even so, I think £200 a month is quite a lot to be able to save.

Out of what wage?

You can always make cuts. Sometimes they're easy and painfree and sometimes you actually have to stay in everynight for a few months not drinking etc to do it. And I've found that some people are really adverse to giving up their social life.

makingbetter

Some people are,but some people are not. I don't think mking presumptions about peoples life helps- IME very few people would be whinging about not being able to save whilst out boozing. There seems to be an assumption that people are a bit stupid and can't see the obvious- my point was sometimes the money just isn't there, your incomings simply don't allow anything but minimum outgoings.

And of course its relative to wage- I've just made an assumption of the wage in question based on the value of the mortgage they have/ hope to have.