Interest only negative equity

Single_Woman

Hoping for some advice please.....

I have an empty property which is in negative equity & I'm just managing to meet mortgage repayments but have just read that interest rates will be going up which is obviously very worrying.

I'm unsure whether to try & rent it out until house prices rise again or to try & sell? Obviously I'll have to sell at a loss but my credit history not good so probably won't be able to get a loan to cover the negative equity..... Can anyone advise or suggest anything?
Thanks

dimbo61

Do you have a mortgage with halifax or RBS ?
Why is the property empty ?
You should either move back in and get a lodger or rent out the place asap
Who said mortgage rates are going up ?

Single_Woman

Mortgage with GE money.
It's empty cos I've moved in with partner so won't be moving back. So maybe getting a tenant might be solution.
It's all over sky news about rates going up... Chances are others will follow in footsteps of Halifax & RBS.

Thanks

hermanmunster_3

don;t forget to ask lender for permission to let

Single_Woman

Crikey, didn't realise I had to advise lender. What happens if they refuse to let me rent?

maninthestreet

So how much is the property now worth, and how did you arrive at that figure?
What is your outstanding mortgage, and what interest rate are you paying?

brit1234

Single_Woman wrote: »

Crikey, didn't realise I had to advise lender. What happens if they refuse to let me rent?

Carry on paying mortgage on a empty property (waste as it is interest only) or sell and take the hit.

Thrugelmir

Sell the property. Offer what you are currently paying on the mortgage to repay the outstanding debt.

The risks you face are (a) rising interest rates (b) falling house prices.

Any problems in letting the property out will merely compound your problems.

Old_Git

can you sell with negative equity ?

Thrugelmir

Arrangement would need to be agreed with the lender prior to completion of the sale.

Single_Woman

Lender wants full amount on any completion of sale & credit history not good so may not get a loan for an outstanding balance.
I think I need to see financial advisor see what my options are.

Mortgage £75k. houses in same area going for £55-65k. Interest only mortgage so owe £75k.

Thanks for comments guys