Will we EVER have a way out?

rover25

We bought a 3 bed semi in 2007 at peak of market here in NI!
Paid £179,000 with 100% mortgage with ulster bank.
Last June 2009 the 2yr fixed rate ended and we were offered another 2yr fixed at 3.99%. I was v.surprised at this due our negative equity. We paid another few thousand off last Oct after our wedding and statement then said we had a balance of approx £169,000.
Problem is we really dislike the house, the area etc.. We had originally wanted to buy in a town about 12 miles away but we just couldn't afford it. Every time we put a bid in, someone put 10 grand more on! The house has terrible soundproofing, neighbours across road sit and blare their music and the rest of the estate seems to all know each other and don't work. There are three houses for sale in the estate at the moment ranging from £95,000 -£110,000. I know many will say, it's our own fault and we know we got ourselves into it, but it depresses me thinking we will never be able to move out or get rid of the property. We can afford to pay all the mortgage payments and don't have an issue there. We just hate paying for somewhere we hate. My salary is £33,000 and my husbands is just over £20,000.
Is there any light at the end of the tunnel for us? Many thanks

beecher2

Overpay/save as much as you can to try to get out of it - there isn't really any other way out I'm afraid. I suppose you could look into renting the place out, and you renting elsewhere if you really hate the place, but I'm not sure the sums would add up.

rover25

Thanks for ur post. I know, you are right. At the moment we can't overpay on mortgage as it is fixed but I am trying to save as much as possible so I can pay off about 12 grand next June when fixed rate ends. I wish now I had left it on the svr (3.99% as well) but we could have over paid on that, but I was too chicken in case interest rates went up in the last year.
I do feel we could rent somewhere ourselves. After I pay my part of mortgage I have approx £1100 left, so feel we could afford somewhere in the town we wanted (generally about £500 per month).
It's just a depressing situation to be in.