Negative equity

andy_b_5

Hi all,

Any advice would be excellent.

I have made a few financial mistakes in life and I fear they will haunt me for the rest of my days.

My mortgage is 166,000 and my house is worth 132,000. So effectivly i am 34,000 short.

I am happy enough in my house at the minute so should I just ignore it and start building assets by saving investing etc or start paying it off.

It would be soul destroying to pay off 30,000 and end up with nothing to show for it.

Anyone in the same boat with a plan and odnt mind sharing.

I have never had any financial advice myself and have learned alot in the last few years.

Cheers

beecher2

Overpay if your mortgage rate is higher than that you could get by saving. You could post a Statement of Affairs on the Debt Wannabee forums and get help with your budget so as you can save as much as possible. Is taking in a lodger a possibility?

katie1234

I'm in almost the same boat and i'm sure there are many others.

Difference between me and you is i really want to move. I just console myself in the fact that everyone makes mistakes at some point in there life and everyone will also lose money at some point so if this happens to be how we lose it then so be it!

As interest rates are low i agree with either paying off your mortgage or saving depending on the rate. If your planning on staying put, it will eventually evn itself out. I am currently saving into an ISA and when i have saved enough, will just sell and take a loss.

I understand how you feel with paying out and essentially having nothng to show for it but just try not to dwell on it too much and look on the bright side. You have a home and have the ability to try to save/ pay extra on it. Still a nice situation to be in. Thats what i tell myself anyway.

originalmiscellany

How old are you?! If you're over 60, it'll dramatically change the answer, whereas if you're say in your 40s, there's a lot more scope.

dimbo61

In 5/7/9 years time your home maybe worth a whole lot more than it is now!
You will have paid some of the outstanding debt off the mortgage so if you are happy with your home and dont need to move then stay and overpay.
Why did you get in Negative Equity did you borrow more money from the equity in the property when lenders were giving it away? time to reduce your debt

andy_b_5

Hi guys,

I am 33. I bought the house for 140 then got 25k added on for improvments. Mistake. When is the best time to over pay etc? Should i not have some saving for emergencies? ON the bright side I have no other debt apart from a car loan which i should pay off by end of year.

I was thinking of paying the money from car loan into mortgage which is £160 a month.

getmore4less

It would be soul destroying to pay off 30,000 and end up with nothing to show for it.


£30k less debt


My mortgage is 166,000 and my house is worth 132,000

I bought the house for 140 then got 25k added on for improvments

Why is the mortgage going up?

Engeroosi

guessing that is his fees on top on the mortgage and he is on IO, so if that is the case he really needs to start overpaying.