2 homes, 1 negative equity = 0 moving chance?

Rixter757

Hey all,

My fiancee and I bought a house together at the peak of prices

The missus had previously bought her mothers house while she lived with her, but unfortunately her mother passed away last year We moved in to this house, are currently renting out our joint home.

We now have a house approx -30k in equity, the other probably around +20k.

We want to move home, a fresh start with just the one mortgage. We each have decent credit ratings etc, but will 2 different lenders allow us to somehow consolidate into one mortgage elsewhere?

I'm thinking it's a firm no, but just wondered if someone may have advice? The only solution I have come up with is to rent out the 2nd home & then rent a new home ourselves...

Thanks in advance,

Rixter

Thrugelmir

Sell the 2nd home then address the issue of negative equity in your other property, before looking to purchase again.

Will take time but you'll get there.

getmore4less

Your current lenders don't care as long as you pay off the debt.
New kender will want a deposit

Net you are negative equity by £10k

Then there are fees to sell two places

Then there is the deposot fore the new one

Then there are more fees.

How much savings do you have?

Rixter757

Thanks for the replies folks

Thrugelmir, I think you are right & this would be our best option. Sell the 2nd home to get some cash.

getmore4less, unfortunately we don't have savings. We're skint like everyone else, usual credit cards & loan in there too.

So would I be right to figure that if we had approx 20k that we would be in a better bargaining position with the lender of the house in -30k equity? Would we be able to negotiate a new mortgage elsewhere with the view of giving the 20k as deposit, thus lowering their risk on how much negative equity we would be then bringing to a new home? In theory this would mean that they are only exposed to -10k?

Super board by the way, didn't expect quick responses

Rixter

Thrugelmir

Spending money on buying and selling property while you have other debts makes no sense.

While new home may seem appealing ( fresh start) it doesn't resolve your existing problems, merely compounds them. Facing up to where you are now financially would be a major step forward. Don't rely on house prices to increase rapidly and solve your problems for you.

Pay a visit to the Debt Free Wannabe board. Plenty of advice and support on there.

Typhoon2000

Rixter757 wrote: »

Thanks for the replies folks

Would we be able to negotiate a new mortgage elsewhere with the view of giving the 20k as deposit, thus lowering their risk on how much negative equity we would be then bringing to a new home? In theory this would mean that they are only exposed to -10k?

Rixter

You cant get any -ve equity (>100% Loan to value) mortgages anymore. So if you get a new mortgage you will need a minimum 10-15% deposit. You cant 'move' your existing -ve equity over to a new home or stay in the same home but move to a different lender.

Rixter757

Thanks again guys. Moving home is something we need to do for personal reasons. We are working on the separate debt each month, our wages leave breathing room for additional payments. I just needed to know if our existing mortgage lender would consider our moving home with the view of continuing with -ve equity (strengthening our position with the 20k deposit, thus reducing the -ve). I think this is what Typhoon2000 was saying, that this is possible

Typhoon2000

I think that was a typo on my part, I dont think you will be able to move -ve equity over to a new property with the same lender/different lender.