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I owe more money on my house than its worth!

anon999_2
anon999_2 Posts: 1 Newbie
in Mortgages & endowments
I want to sell my house and move in to rented accomodation, what happens if my house sells for less than its worth? I owe £82000 mortgage but have £44000 of secured loans. my house is only worth about £110000. please help.

Comments

  • iamana1ias
    iamana1ias Posts: 3,777 Forumite
    You will still owe the difference between your loan values and the sale price of your house.
    I was born too late, into a world that doesn't care
    Oh I wish I was a punk rocker with flowers in my hair
  • papermoney
    papermoney Posts: 583 Forumite
    iamana1ias wrote: »
    You will still owe the difference between your loan values and the sale price of your house.

    You will have to ask your lender if you are allowed to sell (they dont normally say no) then when it's gone through you will still have to pay the shortfall. This will be an agreement between you and them*.

    I had to do the same with my previous mortgage. I have a set amount each month I am paying back on their varible rate (which is a lot lower than a loan rate through high street banks).

    *However, I didnt have secured loans so if it is with a different lender to your mortgage lender then it might work differently.
    :rotfl:
  • papermoney
    papermoney Posts: 583 Forumite
    Oppps I quoted the wrong person I meant to add my bit onto the end of the OPs post.
    :rotfl:
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