Negative equity and loss of income - any advice?

[Deleted User]

Hi All,

I'm not sure if this is the right forum for my question so sorry if it's not, but I wonder if anyone has any ideas about this.

My sister and her husband bought a horrible, tiny little flat at the peak of the housing market (around 2007), for about £110,000. They only had a small deposit which my parents lent them, so they don't have a very high LTV. They are now desperate to get a proper house, but they are now in negative equity; another flat in their block was recently sold for about £87,000, a lot less than they paid for it.

Although it has got 2 bedrooms, it really is exceptionally small - the kitchen and bathroom are like 2 matchboxes, the 'spare bedroom' is nothing more than a cupboard really, and the living room isn't even big enough for their sofa!

To add to their woes, my poor brother in law who was made redundant last year and found himself a good job doing surveying for a solar panel fitting company has just been laid off again. I know they are desperate to move, and perhaps start a family, but at the moment it seems hopeless.

I would like to help them out - you guys are a wise and knowledgeable bunch; if anyone has any ideas or advice that I could pass on to them, please please let me know!

_Andy_

Unfortunately without a deposit (10%+) on the next property, a move just isn't going to be possible at the moment. And obviously concentrate on overpaying the current mortgage when it becomes feasible again.

Thrugelmir

Start paying down the mortgage and get on top of the mortgage debt. The less they owe the less interest they pay. As simple as that. Nothing magical. Just the right mindset.

Join the Debt Free Wannabe board. Loads of support and advice on there.

Old Chinese proverb to consider. " A man who wishes to move a mountain starts by moving the smallest stones first".