Selling with negative equity

graham_woodwarduk

Hi, this is my first post and I apologise if a similar post(s) exists. Basically my fiance and I own our house, we bought for 109k nearly 4 years ago. We stayed on interest only until last month so we still owe 109k. The house is valued at 100k, which is what we have it on the market for (down from 110k to 105k to 100k). We've only had 1 viewing in the 4 or so months it's been on the market.

We have about 30k in savings and we're looking to move up the housing ladder ( 3 bed, garage etc) but we're not sure what our best option is.

We can stay, which isn't ideal as we're looking to expand family wise. We could extend (roof conversion) but will that add any value?

Our mortgage now we're on repayment is around 750 a month and we could try and rent, with the rental incoming not covering the mortgage but we don't know whether we'd be able to get the second mortgage.

The sort of price we'd be looking to buy at about be about 130-140k, which in this market should get us something decent.

Any help/advice is greatly appreciated.

Thanks,
Graham

[Deleted User]

If you bought for 109k and still owe that amount, did you get a 100% mortgage? Or did you buy for more than 109k?

adam1982

In my opinion i would stay put. If you have it up for £100k then that is obviously the maximum and are very unlikely to get anywhere near it at the moment. Say you got 85k offer would you accept it?

You would need to get a BTL on your property in order to let it out but would need to have around 30% deposit to stand a chance with a bank at the moment. Having a self financing BTL mortgage wouldn’t affect getting a new residential mortgage but not having enough deposits for either property will be the issue.

graham_woodwarduk

Hi,

We bought for 115k so we put down 5k deposit.

We wouldn't really want to accept anything less because that means we have less of a deposit for our next house. Basically we have 30k savings so if we got 100k, we'd pay the 9k negative and have roughly 20k for new house/fees etc

Thanks,