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Negative Equity & Moving House
K1RST1E_2
Posts: 176 Forumite
I've booked an appointment to see our Mortgage Broker at the weekend. It has been three and a half years since we bought our house, which is on a 50% share basis currently in negative equity. We would like to move house, closer to family and friends and have seen a new development that would be ideal for us. We need a 5% deposit which of course we don't have at the moment due to us being in negative equity so we are hoping to get some advice. I think we are about £8,000 down from when we first bought the house.
I'm hoping to get some advice on what we should do as at the moment, i just feel stuck where we are. A part of me just wants to cut our losses and start renting again. The house we are in was only supposed to be a temporary situation to get us on the property ladder. Since buying the house, we have increased our earnings by almost double but due to have no savings we don't even have a deposit to buy the other 50% share!
I have seen a couple of mortgage providers offering existing customers who want to move negative equity mortgages, which I am hoping could be an option for us as in three years time, we will have shares mature which we can use to pay off a lump sum of the mortgage and clear it quicker. Has anyone else have the same issue with negative equity and wanting to move?
I'm hoping to get some advice on what we should do as at the moment, i just feel stuck where we are. A part of me just wants to cut our losses and start renting again. The house we are in was only supposed to be a temporary situation to get us on the property ladder. Since buying the house, we have increased our earnings by almost double but due to have no savings we don't even have a deposit to buy the other 50% share!
I have seen a couple of mortgage providers offering existing customers who want to move negative equity mortgages, which I am hoping could be an option for us as in three years time, we will have shares mature which we can use to pay off a lump sum of the mortgage and clear it quicker. Has anyone else have the same issue with negative equity and wanting to move?
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Comments
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You're stuck, I'm afraid. The few mortgage companies that offer 'negative equity mortgages' require you to have some savings to reduce the LTV when you move, plus they won't be interested in a shared ownership property.
As you have major credit card and personal loan debts as well the mortgage, and your credit rating is already trashed, it might just be better to go bankrupt and start afresh. Try posting on the Debt Free Wannabe board for further advice.poppy100 -
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we have increased our earnings by almost double but due to have no savings
Should be saving now.0 -
No, you should be paying off your debt0
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