Can I get a 2nd mortgage if have deposit but in negative equity with first house.

rover25

The houses rent for approx £400 per month. Not near our mortgage payment but would contribute towards it. We feel that if we were to rent we would be paying an additional approx £500 per month but if we got £ 400 per month for our own house rented out that would be a help. In addition, If we were to rent in where we want to live we would save approx £150 -200 per month on petrol between myself and husband.
Other than that only other option is wait another year or two and put down a deposit on a 2nd well priced house that we would live in.

foreversummer

Hi

I've no great solution I'm afraid but wanted to sympathise with you. Hubby and I, many moons ago, were deeply unhappy in the house we were living in with terrible noise problems and vile neighbours. We were trapped for quite a while but eventually managed to sell the house below market value and purchase another. It was a bit of a stretch financially but well worth it. Unless you've been in that position it is hard to explain how it affects every area of your life.

You of course have the added problem of negative equity. I hope you can come up with a solution and I wish you all the best.

Foreversummer

rover25

Thank u so much. It really is depressing and just like how u described. My husband and I only ever get upset with each other when we are talking about the neighbours, their noise etc and about what we can do. The situation can really impact on stress and quality of life. We are aware of this and are determined it won't make our r'ship negative.
Thanks again

Thrugelmir

rover25 wrote: »

Thanks for your reply. I totally understand what you're saying. It's just that our mortgage is about 165k and houses in this park are going for 95 - 105k. It'd be an awful long time to stay in the house to get it down to that level.
We both dislike the house (soundproofing terrible), dislike area (all Housing executive) - we didn't know either of this before we bought (Our own fault I know)
It really depresses me to think we've already been here for 3 yrs and to spend another 3 or 4 deeply unhappy is really worrying.
We pay £775 per month at moment between the 2 of us. I take home £1700 total, my husband about £1200 -£1500 per month.
We wouldn't do anything until we know what sort of fixed rate we will get from lender when our deal is up next June.

A property is not a home. A home is something you create from a property.

With a reasonable take home salary overpay the mortgage by as much as you can afford. Its your only realistic way out.

If your savings earn less interest than on the mortgage. Then pay the mortgage down.

Little point in getting down. As the grass isn't necessarily greener, moving may not solve all your issues.

rover25

To be honest, I feel moving would solve our problems.. Our problem is with our neighbours, music and inadequate soundproofing. If we move, that problem is gone. Perhaps we'll have other issues, but at least I'll have my mental health intact!

zzzLazyDaisy

The point about a mortgage is that if you fail to pay the mortgage the lender can repossess and sell the property, to get the money back. Obviously that is not possible when you are in negative equity. So as far as the lender is concerned, if you defaulted, and the house was repossessed, you would still be left having to find a significant amount of money.

I think it is extremely unlikely that you will find a lender willing to advance you more money to buy a second house, in those circumstances, especially since the credit crunch.

However, to put your mind at rest, you could always go and see a mortgage broker and find out for yourself.

lanclass_2

It might be possible - seek financial advice. This happened to us in the late eighties - we were in serious negative equity, but needed to relocate. We kept our NE house, got consent to let and purchased a new house in the new location. We had to keep our NE house until 2002 before we could sell it, and we were really lucky in that we had long term, trustworthy tenants. But it's not ideal and not a decision to be taken lightly.

rover25

Did you just arrange a meeting with your lender and ask them if it was possible to consent to lent?

lanclass_2

Yes - it was the Woolwich and we did it over the phone - but that was then!