Negative equity question

Dorastar

Just a quick question - would any lender even consider giving us a re-mortgage with negative equity (which I assume we have as we bought in 2007 and prices have plummeted in our region) or am I going to be wasting my time and effort even trying?

We are in our 'forever house' so not moving but the svr we'd go onto is carp and financially would make a lot more sense to fix lower somewhere else rather than continue on the carppy rate - never going with estate agents mortgage person again (hadn't found mse then but have seen the light since )

Thrugelmir

You'll need to pay down the mortgage first by moving into positive equity.

Analyse your expenditure and see where you make savings. Then use them to repay the mortgage quicker.

Dorastar

Thanks - have put kids and dh on ebay to start the paying off the negative equity :j Think this is going to be a right old b*gger of a few years unless they sell well.

Sammie_UK1

What was ur LTV when u bought the house?
How much negative equity are u in?
Have u been overpaying? Are u able to overpay?
Are u currently on a repayment mortgage or interest only?

Thrugelmir

Dorastar wrote: »

Thanks - have put kids and dh on ebay to start the paying off the negative equity :j Think this is going to be a right old b*gger of a few years unless they sell well.

Serve baked beans on toast 4 times a week.

Dorastar

Able to overpay now and are doing but on interest only (I know I know don't shoot me I will pass on all my new mse wisdom to my children and their children)- won't be able to overpay as much once new rate kicks in (Oct) but will endeavour to do as much as we can.

LTV was 90%:o Not sure how much neg equity but plummeted is an understatement for local house prices - can't give houses away round here atm.

@Thrugelmir - icklies hate beans but soup is also good and has the benefit of stretching further if watered down:rotfl:

We will not die of the stress or lose the house and are happy with our lot - just would like to make use of all the new found wisdom I have gained rather than have to kick myself for my earlier stupidities but will do what is necessary to make it work. Am still learning the hard way but you do learn more from your mistakes so my degree should be here soon.

Thrugelmir

Over time the situation will correct itself. One day in the future you'll be mortgage free and be able to enjoy your hard labour. It is well worth the effort. As once you own your own home outright. Then that's a major worry gone for ever.

Dorastar

Thanks Thrugelmir - am trying to remain upbeat - will still ask around as you never know someone might take pity on us as a fixed rate would allow us so much more financial security in these more uncertain times. We managed to keep going through two years when dh was laid off and we still have most of our sanity and we do all genuinely like soup so will be ok.

Dorastar

Been to see my bank and got appointment with financial adviser on Saturday to see what can be done - then onto mortgage advisor later in month if appropriate. Ringing current provider to ask questions about svr/fixing rates this afternoon. Have talked to dh/told him what we are doing and grabbed the bull by the horns so to speak. Time to seriously spring clean all our finances.

Thrugelmir

Dorastar wrote: »

Been to see my bank and got appointment with financial adviser on Saturday to see what can be done - then onto mortgage advisor later in month if appropriate. Ringing current provider to ask questions about svr/fixing rates this afternoon. Have talked to dh/told him what we are doing and grabbed the bull by the horns so to speak. Time to seriously spring clean all our finances.

Once you are in control of your finances don't let go.

Hope that all goes well for you.

Dorastar

Hmm 109.5% owing due to negative equity - can switch to repayment for £353 monthly increase - was hoping to be frugally stash £300 per month to get some equity down so will consider this - but still waiting to talk to own bank first as they may have other suggestions.

And have booked in for a free manicure using a voucher I have had stashed since Christmas so at least when I'm eating my 20 years worth of soups I will have lovely nails to look at.