Moving House with a 110% Northen Rock mortgage!

kellydobson

We've had an offer on our house for £86,500 and out mortgage balance is at about £97,000. We realise that we can't get another mortgage so we're planning to port this mortgage over to another property worth less than £86,500. The only problem is that Northern Rock will add porting and valuation fees to the balance but won't pay the estate agent or solicitor fees which come to about £2500 and we have absolutely no spare money going at the minute as we're getting married in a few months! Don't really know what we can do, our house has been on the market for ages and we're so desperate to get out but it's come at the worst possible time! Any advice?

_Andy_

without the money it won't happen. I would imagine borrowing it from somewhere will be your only option.

opinions4u

Defer the wedding.

Your response to that will help you measure how "desperate" you really are.

Personally I think it's rather good of NR to port a debt over to a property of a lower value. Please could you expand on how this works.

It sounds like you will end up with even more negative equity (LTV), which surely isn't a good thing.

kellydobson

We would postpone the wedding if we could but the problem is we're going to cyprus to get married so a lot of family members have already booked to go so I just couldn't cancel as there would be a lot of annoyed guests and I would feel terrible.
NR said we could buy something of exactly the same value as we sell for, or if we buy for less the balance from this and the negative equity (would be about £10,000) could add up to no more than about £91,000 (I have no idea why it's this figure).
The only way I can think of doing it, besides a loan, is doing some kind of deal with the vendor where they can give us cashback to pay the fee's but I don't know how likely this is to happen!

SimbaSimon

kellydobson wrote: »

We've had an offer on our house for £86,500 and out mortgage balance is at about £97,000. We realise that we can't get another mortgage so we're planning to port this mortgage over to another property worth less than £86,500. The only problem is that Northern Rock will add porting and valuation fees to the balance but won't pay the estate agent or solicitor fees which come to about £2500 and we have absolutely no spare money going at the minute as we're getting married in a few months! Don't really know what we can do, our house has been on the market for ages and we're so desperate to get out but it's come at the worst possible time! Any advice?

Why do you need to sell and downsize? Do you really have to move house? As it seems like your not in any position to do so. Can you not stay where you are for now, continue paying your mortgage (and overpaying if possible to get rid of that negative equity), get ready for your wedding but try not to overspend and then reassess the moving situation in 2-3 years when you may be in a better position? It sounds like you won't be any better off moving so I don't see why your so desperate to move.

kellydobson

Realistically, yes that is what we should just do; stay put for a few years until we are out of negative equity. The only reason we want to move is because of the area we live in, we hate it. We bought this house as an investment just before the market crashed and had not planned to live in it as long as we have done. We thought we could make money from it but entered into it at the worst time!

UnderPressure

kellydobson wrote: »

Realistically, yes that is what we should just do; stay put for a few years until we are out of negative equity.

You have just answered your own question

There is no magical remedy to this whatsoever, you have 2 options (sensible ones anyhow) what you have written above or postpone the wedding..........

Best of luck

Wutang_2

I would enjoy the day - who cares about anything else? You can't beat a good booze up

poppy10_2

kellydobson wrote: »

We bought this house as an investment just before the market crashed and had not planned to live in it as long as we have done. We thought we could make money from it but entered into it at the worst time!

Well, tough luck then, I've got little sympathy. If you had bought it as a home to live in then that might be different, but if you were speculating then you should have known the value of your investment can go down as well as up. If you borrowed £97k to gamble on the stock market no-one would bail you out if you lost money.

mr_fishbulb

poppy10 wrote: »

Well, tough luck then, I've got little sympathy. If you had bought it as a home to live in then that might be different

Well maybe you could suggest what advice you would give if they had bought it as a home to live in?

I'm a little bit of a property bear too, but I'm not a c0ck about it - well maybe to some of the people on the house price board, but I try and keep it to myself on here, were people are genuinely looking for help.

laurel7172

I'm sorry, Kelly-negative equity is horrendous. Been there, done that (last time around).

Unfortunately, you want two luxuries at once (a big wedding and a move to a nicer area), and if your income doesn't support it, it just doesn't.

If you're truly miserable where you are, have you asked Northern Rock if you can let out the house? Cover the mortgage and rent elsewhere while you save up?