we need to move! negative equity :(

sarashoe

Hey,
We could do with some advice, our property is approx in £16000 negative equity, we are on an interest only mortgage, our current mortgage provider will not give us permission to rent the property out, its a small 2 bed apartment and we have got a boy and a girl, and they need their own rooms now! help, is their any way we could possibly move?? my husband is seriously considering bankruptcy and just renting, wish we had done that in the first place

Thrugelmir

Trashing ones own credit record is not advisable unless its a last resort. As it will haunt you for many years to come.

That includes renting property to live in.

Why haven't you made any attempt to repay the mortgage debt?

sarashoe

we are paying off as much as we can, we have very little luxuries, and any spare money we save and pay off, buts its proving very difficult, we both work full time, and after childcare expenses and general living, ie food etc, not much left.

vicmorrow

Girls and boys can and do share. Whilst it's not ideal it's better than bankruptcy surely? Get a bed/settee?

Thrugelmir

Would you save money by renting? Selling the property would still leave a shortfall that would have to be repaid.

hcb42

have you had a quote for repayment mortgage to switch over? Might be better to bite the bullet, mainly as the difference between mortgage and renting often means it is still cheaper to buy depending on where you are, and indeed rates are at an all time low - right now is truly no mans land on interest only with negative equity (and it will only follow you around if you go down the bankruptcy route, is it really something you want to happen to you?

sarashoe

no i definatley dont want to go down the bankruptcy route, that why im asking for advice. isnt there a law about boy/ girl sharing a room, though i do wonder how that would be policed? our mortgage company are not allowing new mortgages so we cant switch to a repayment mortgage with them, and as we're in negative, we cant remortgage with anyone else as we would need a 100+ % no chance.

vicmorrow

sarashoe wrote: »

no i definatley dont want to go down the bankruptcy route, that why im asking for advice. isnt there a law about boy/ girl sharing a room, though i do wonder how that would be policed? our mortgage company are not allowing new mortgages so we cant switch to a repayment mortgage with them, and as we're in negative, we cant remortgage with anyone else as we would need a 100+ % no chance.

So you haven't checked but yet are considering bankruptcy? Did you miss the bed/settee post?

welshgirl78

You might be best visiting the DFW board - seems like you need some money help and they are marvellous in no end of ways!

I don't think people here can help you very much (in the nicest possible way!) you need more money to move and you need to either save or make more!

sarashoe

sarashoe wrote: »

no i definatley dont want to go down the bankruptcy route, that why im asking for advice. isnt there a law about boy/ girl sharing a room, though i do wonder how that would be policed? our mortgage company are not allowing new mortgages so we cant switch to a repayment mortgage with them, and as we're in negative, we cant remortgage with anyone else as we would need a 100+ % no chance.

we wont declare bancruptcy, its just something my husband mentioned, but as i said, i dont want to go down that route, so we wont. i asked for advice to see if anyone had an idea that i hadnt thought about. thanks everyone for your advice, at least we got a roof over our head ay

palepinklady

You say your current deal is Interest Only - that could well make remortgaging near on impossible, from what I know Lenders are changing the rules on interest only mortgages and now need to ensure you have some method of paying off the capital at the end of the period ... endowment etc. If you can afford to pay your current mortgage would say sit tight, every sign that house prices will rise over next three years ..... giving you some equity etc. Kids will just have to share a room for time being.