Second step on the ladder

SarahFx

Hi! This is my first ever post. Just looking for a bit of advice.

We have a mortgage for £82k plus a secured loan of £12k with Northern Rock (we pay for it in one monthly payment).

We recently had the house valued as we want to move closer to both of our jobs and were shocked to find out that we could probably only get about £85k for it which means we have no equity. We don't have any savings we could use as a deposit for the next house either.

The mortgage calculator on the NR website says we could only borrow £95k anyway based on our salaries of £20k and £14k. Is this normally right or do they allow you a bit more?

Basically, I want to know if anyone has been in the same situation and managed to move. We would be looking at buying a place for about £125k if possible to get a decent sized house/flat.

Thanks

brannyrhino_2

I guess your in a bit of a pickle here.

You could consider a Let to Buy mortgage where you let your current property amd buy another one. The problem with this is your going to have to stick with NR as you wont be able to remortgage your current property if it is in negative Equity.

Ring them and find out if they have enhanced multipliers for existing customers some do.

A broker may be able to advise on enhanced multipliers.

How come the property is in Negative Equity anyway surely House prices have been going in the right direction for years. Has the property been neglected?
Is this a true valuation? Have NR been negligent in lending too much?
How much are property's really selling for in your street Check https://www.ourproperty.co.uk

SarahFx

No the property hasn't been neglected, we've in fact done a lot of improvements to it.

House prices for old properties have dropped about 10-15 k round here due to new builds being sold off cheaply. You can buy a new build 2 bed semi for 100k so ftb are going for them rather than the old terraces.

Thanks for the advice though, we really are in a mess. I feel trapped! To make it more complicated my husband actually works for NR so doesn't want to leave them or anything like that, although I think they have lent us too much against the house.