Can you sell house and part pay off mortgage ?

Haxeyowl_2

Help me please guys.

I have a mortgage with Northern Rock. I recently got divorced and now have a large mortgage on my back that I am trying to pay with only one incoming wage.

I have my house on the market now. I have been offered a price by an online home buying company to purchase my house. That price is about 90% of my mortgage settlement price.

Can I sell my house, pay off 90% of mortgage which will help me loads, and leave me with a very small monthly payment, allowing me to rent a cheaper property?

Because I will be selling the property, will this mean i cannot do what I want ? I am worried that Northern Rock will not allow this, as there is no property to secure the mortgage against.

Your advice is greatly appreciated, as I am really struggling to make ends meet. Doing this will help change my life.

Thank you

themull1

If you sell your house, the mortgage will be paid off in full first, you will get any money thats left over.

CLAPTON

you need to speak to NR and see whether they will allow the balance of the mortgage to become an unsecured loan (probably at a much higher APR)

otherwise can you get a loan independantly to clear the shortfall.

Haxeyowl_2

Thanks Guys,

Problem is that due to taking on the debts of my ex wife all under my wage, my credit score is very very poor.

The mortgage is killing me.

I have been offered a price that is 90% of my mortgage value. If I can accept that offer, sell the house, and pay off 90% of mortgage, then I have a huge monkey off my back.

I am struggling to get by, this will give me a complete new start, and free up so much for me, but nobody seems to be able to assit. You would imagine it would be prefererred rather than taking out consolidation loans, or debt management plans and IVA's ?

It is proof that i am making efforts to sort this out myself.

Has anyone out there got any experience of something like this ?

papermoney

I did exactly this in 2009.
I was with NR and sold my property but it was 15k short of the actual mortgage. I entered an arrangement with them that I would pay that off over 5 years at their standard variable rate 4.79% (which is a lot cheaper than a loan).

You need to speak to NR - they then send a form out which you will in and agree a price with them.

Haxeyowl_2

WOW

Thanks Papermoney. That is fab

I will ring them in morning.

Only issue is my credit rating, It is poor, so i hope they are willing to accept.

I really hope this can work out.

Thank you

papermoney

Haxeyowl wrote: »

WOW

Thanks Papermoney. That is fab

I will ring them in morning.

Only issue is my credit rating, It is poor, so i hope they are willing to accept.

I really hope this can work out.

Thank you

When I spoke to them they said they wouldn't do a credit check. The only thing is - is that on my credit report now it looks like I still have a mortgage when I don't.

For me the process was me ringing them, explaining that due to the housing market (and the fact I had taken a 100% mortgage) I could sell the property but not for the mortgage price. They agreed I could sell it and that I could pay the rest to them. They sent me a form which I filled in with all my outgoings and income and we came to an agreement - which was then sent to the solicitor dealing with the sale. It was actually easy and I had no problems with them. hey were very nice on the phone.

That said i've recently spoke to a few not so nice people on the other end at NR but that's a different story...

It's definitely worth a phone call.

lisalips21

Hi...

Im in the same boat, ex left me in the lurch and im also with northern rock...as you say its hit and miss when you call them, somtimes they bend over backwards and other times arnt interested !
My problem is the usecured element of the together ( 100% ) mortgage....i can raise enough through the sale of the house to pay the actual mortgage and estate agent and solicitors fee's but not anything towards the loan...can i instruct my solicitor to pay mortgage and fee's but not the loan and come to an arangement regarding the loan ???

Very stressed and very confused !!

Haxeyowl_2

Lisalips,

I feel your pain Hun. Hope it all goes OK ?

I have been in touch with a Home Buying company. Problem is, if I put house on market, i could actually get more than Mortgage value, but market is rubbish right now.

If you contact one of the homebuyer companies online, they are giving good prices, and they do all the solicitor stuff. You just get a cheque, and they can get your propery.

It works brill if you have no chain. i am looking to move area, and rent with my Girlfriend, so I am happy to be out ASAP

Doozergirl

Haxeyowl wrote: »

Lisalips,

I feel your pain Hun. Hope it all goes OK ?

I have been in touch with a Home Buying company. Problem is, if I put house on market, i could actually get more than Mortgage value, but market is rubbish right now.

If you contact one of the homebuyer companies online, they are giving good prices, and they do all the solicitor stuff. You just get a cheque, and they can get your propery.

It works brill if you have no chain. i am looking to move area, and rent with my Girlfriend, so I am happy to be out ASAP

But there must be somewhere in between more than your mortgage and 90%?

Home buying companies are out there to make money on your house so they must fell pretty confident that they can sell it straight onto someone and make a profit. They do nbot give good prices and frankly I wouldn't ever suggest that anyone sell to these people, especiallywithout even trialling the market.

How much have they offered you? What do you think it would be worth on the open market? There are buyers out there who are looking for deals, I think that a good deal for them and you lies in a compromise.

Yes, by all means check this with Northern Rock but I think you owe it to yourself to get a valuation for a relatively quick sale from some EAs.

lisalips21

Thanks....

Have had four valuations ranging from 80 - 90 k, think i am going to try the open market first and see if i get any results, now i know i only need to clear the actual mortgage not the loan out of a sale im sure there will be enough left over for estate agent and solicitor fee's and then i will have to sort the loan out seperate.......have got to move back in to mums as cant afford anywhere to move to and the housing wont put me on the list till i have sold the property......god knows what im going to do with all my stuff as storage is soooooo expensive !!!