Moving Home - Zoopla Hurts!

HJS86

Well just had a quick call with Nationwide (they were calling to tell me what docs i need to get ready for Aug 9th) and they've advised that its best to go with a larger deposit than knocking down the mortgage by overpaying.

She's worked out that if we manage to sell for £65,000 we would only have £6585.77 in negative equity which isn't so bad at all in the grand scheme of things, especially as this time next year when we're hoping to sell we'll have an even larger deposit to put down on our next property.

Fingers crossed theres a way out of all this! Fair enough we wont have made any money on the property, but thats not what its about. We could have rented, so its just the same really. The priority is not making money on property, but having a comfortable home that you can afford and suits your needs, which hopefully will be a family in a couple of years )

Will keep those interested updated. Thanks for everyone's on going advice.

SuzieSue

HJS86 wrote: »

Well just had a quick call with Nationwide (they were calling to tell me what docs i need to get ready for Aug 9th) and they've advised that its best to go with a larger deposit than knocking down the mortgage by overpaying.

.

Did they give a reason why that would be better? I would have said that as long as you have enough savings for emergencies and moving costs, then you should pay down your mortgage unless you are on a really low rate when you can get more interest on your savings.

HJS86

Hi SuzieSue

She didn't provide a reason. Hopefully will have a clearer picture when we have the appointment, am going armed with all the fact and figures and scenerios she could ever wish for!!

HJS86

Good news everyone.

Visited the Mortgage advisor today at Nationwide. They have collected all our paperwork together and given a premliminary yes to having approx £7k negative equity.

Now we need to place the property back on the market at £67k with the hope of getting £65k. Once a buyer is found the solid application can be made; they needed real figures to give a def yes which obv we wont know until we have a buyer.

So the plan is to save like crazy, by March 2012 we will have £8k which will cover our fees and the £6k deposit and place it back on the market for £67k. We have worked out the mortgage payments on the 100.3% mortgage and it works out fine, though unfortunately were not able to port our current rate over on the existing mortgage we have.

Seems there is a way out this time next year, hopefully we'll have a buyer, a chosen house and should be knee deep in the usual paperwork

GDB2222

Hope it works out for you.

HJS86

Am very confused and upset.

I just got a call from the mortgage advisor who has double checked with which ever department it is who deals with negative equity mortgages and its come back a no despite the MA approving us yesterday

Her advice was to reapply in Spring next year when my husband will have had a slight increase in pay (prob about £500), we'll have about £2k more in savings and obviously will have paid more off our mortgage, but only approx £950.

So basically its most likely to be a no in March aswell isn't it?

We were going to sell for £65k but looks like we'd need about £69k to be considered as this would reduce our negative equity by another £4k, leaving just £3,250.

This flat which is close to us has just sold for just shy of £70k

http://www.rightmove.co.uk/property-for-sale/property-18465342.html

grrrr!

Caveat_Mortgagor

I think its time to stop beating your head against a brick wall.

Like you say, target saving money, paying down the mortgage and putting yourself in the best position possible.

Good luck.

GDB2222

I remember during the last house price drop (1990's), the banks initially refused to allow porting of negative equity, but in the end they came round to the idea. As caveat says, nothing to be done about it right now, except save as much as possible.

HJS86

Thanks Guys.

£400 a month.....squeeze squeeze squeeze and fingers crossed!

LawrenceatZoopla

The way we calculate the Zoopla.co.uk current values, via our algorithms, has been designed and built to continuously learn from each new piece of data that we receive and whilst we recognise that our automated valuations may be imperfect with incomplete data, they generally provide a very good starting point and the more data that is provided, the more accurate the output.

More info can be found out about the Zoopla Estimates on the link below - sorry not allowed to post links:

zoopla.co.uk/property/estimate/about/