Negative Equity and Selling

DannyboyMidlands

Then you will need to borrow the money. Friends, relatives, bank?

angeljay

carslet wrote: »

that must have been the time they were giving out 125% mortgages, and rising house prices, those times have long gone, they might take it out of the house sale, but you will still have to pay the difference somehow,

can you not rent it out for a few years, and rent somewhere you want to move to, although this a pain, could be the only way you would be able to get away from paying the NE and fees. unless you are not bothered about the cost and just want to get out

I presumed that I would have to pay the rest of the loan in maybe installments just like any other credit agrrement is this right?

Renting could be an option however as I am on the banks SVR then I assume that if my mortgage payments go up I can't put rent up to cover this.

angeljay

DannyboyMidlands wrote: »

Then you will need to borrow the money. Friends, relatives, bank?

Still don't think that is possible not that amount of money and have credit cards so doubt the bank would give me that much considering they will see I have this unsecured amount already in my name.

Simon_gloster

angeljay wrote: »

I currently live in a house which I am considering maybe selling, mortgage is an NR together mortgage 75K secured, 25k unsecured with an outstanding balance of around 97K

If The house sold for around 85K (price a house two doors down is currently for sale at) would NR let me sell the house or force the sale to stop?

From what I understand they would they expect me to pay the over part of the mortgage would this be as loan payments or in full?

WHat about other fees such as estate agents, solictors etc can these come out of the house sale? I have no savings to help pay for the sale of the house. Want to move away and start a fresh.

It is possible to sell in this situation. Only the secured element is taken into account and this is where the lenders legal charge is secured against. The £25K unsecured...well it's a personal loan. If you do split the 2 up, ie pay secured off and keep the loa, expect NR to increase the rate to around 8-10%.

as someone mentioned, you will have fees. Let's say you sell for £80K. EA fees, and sols fees. £1500-£2000 ish.

Assuming you have no savings you would have to rent or live with family as there would be no money left over as deposit on your new home.

angeljay

carslet wrote: »

do you really need to move, ??

I live in Yorkshire and considering moving to London to start a new job and work and a career the town i live in does not have the same oppurtunity that london does.

Also I am just about to turn 31 and think if I dont do this now I never will and may regret it. .

angeljay

Simon_gloster wrote: »

It is possible to sell in this situation. Only the secured element is taken into account and this is where the lenders legal charge is secured against. The £25K unsecured...well it's a personal loan. If you do split the 2 up, ie pay secured off and keep the loa, expect NR to increase the rate to around 8-10%.

as someone mentioned, you will have fees. Let's say you sell for £80K. EA fees, and sols fees. £1500-£2000 ish.

Assuming you have no savings you would have to rent or live with family as there would be no money left over as deposit on your new home.

Thanks for the help there, not looking to buy again don't think it is a major thing anymore and will be renting.

silvercar

I currently live in a house which I am considering maybe selling, mortgage is an NR together mortgage 75K secured, 25k unsecured with an outstanding balance of around 97K

Unsecured means just that, you can sell if you can clear the secured part of the mortgage, BUT the unsecured part remains with you. So you pay off the 75k, the legal fees and estate agents costs and move. You still have to pay the unsecured loan. If this is a NR Together mortgage, you will find that the catch is that the interest rate on the unsecured loan will increase if you clear the secured part. So you would need to budget for higher payments on your unsecured loan, but it is definitely allowed.

carslet

angeljay wrote: »

I live in Yorkshire and considering moving to London to start a new job and work and a career the town i live in does not have the same oppurtunity that london does.

Also I am just about to turn 31 and think if I dont do this now I never will and may regret it. .

can you PM me please, i have a friend who buys and sells houses in yorkshire, he might be interested, or i might, he in in west yorkshire

angeljay

silvercar wrote: »

Unsecured means just that, you can sell if you can clear the secured part of the mortgage, BUT the unsecured part remains with you. So you pay off the 75k, the legal fees and estate agents costs and move. You still have to pay the unsecured loan. If this is a NR Together mortgage, you will find that the catch is that the interest rate on the unsecured loan will increase if you clear the secured part. So you would need to budget for higher payments on your unsecured loan, but it is definitely allowed.

Yes I understand that the amount would go up by 8% on top of their SVR.

BitterAndTwisted

What I guarantee you will regret is not the not-being-able-to-move-to London part but the huge burden of that unsecured loan around your neck. For God knows how long.

Could you afford London rents with that massive unsecured loan to service?

Have you looked into sitting tight where you are for the time being and taking in a lodger or two? Thirty-one is still quite young, I don't think there's any need to rush and make a life-changing or rather a life-threatening decision just yet. Move to London when you're solvent.