Still in Negative Equity will I eve be able to move??

soulheavensu

My husband and I brought our 2 bedroom flat in August 2009 for £135k.. Then the housing market crashed.. I am desperate to move to a 2-3 bedroom house so we can start a family but we are still in negative equity. Our next door neighbours who have exactly the same flat as us (layout, quality and style of decor etc) and they just put theirs on the market for £125k so we are already 10k down with no deposit. we got married in 2010 and so all our savings went into that. We bot have debts all though I will be debt free by the end of the year he will take approx 12-18 months to clear his if I cover the house hold bills for a bit.. When we first moved out I was up to my eyes in debt and not earning loads. I'm now on a good salary with little debt.. I read about these new homes where the company will part ex etc etc but not sure if anyone would 'assist' us in our situation. We think after 18months we could possibly save 20k over 2 years.. I'm desperate to move before them but I doubt we would even get a mortgage with my poor credit history (defaulting payments in 2009, 2010) I also have a DMP with the CCCS so not sure if that would go against me..

Any advice would be really helpful thanks

Simon_gloster

Some lenders offer negative equity mortgages for existing customers. Up or downsizinh you'll have to find all the costs. They wont allow you to increase the debt or ltv.

Ultimately, and this is where it stops, it A1 credit history.

Leave it for 2 years and keep clean then its worth a punt

soulheavensu

Our mortgage lender is Northern Rock (well NRAM) Lol they wont do anything to help they just want rid of us lol

Thrugelmir

You need to tackle one thing at a time. Firstly clear the DMP. Then tackle your other debts. As these are the steps that will start to improve your credit rating.

Suggest you take a look at the Debt Free Wannabe board. Plenty of support and advice from people that have debt problems for all sorts of reasons. However all share the same goal of paying off their debts.

No easy answers. Just self discipline and hard work.

opinions4u

we got married in 2010 and so all our savings went into that

I'm not saying you shouldn't have got married, but ...

you choose what you spend your money on. If getting out of unsecured debt and negative equity are your priorities, do exactly what the post above says.

Two ways out of negative equity.

1. Reducing debt.
2. Increasing property values.

You have control over one of those.

Artemis

There's not easy answer and it can be really depressing, I experienced this with my first flat in the 1990's. After several disappointing years of trying to sell, we decided to just get on with our lives, saved, got married & started a family there eventually moved out and rented it for 5 years with a buy to let mortgage on a cheap house. The market improved, we sold both house and flat and moved up the housing ladder. My experience is you can control this, so don't put you happiness on hold over property.

bodmil

Could you get consent to let and rent a studio yourselves and get the higher rent from a tenant? Or get a lodger for a few months to help clear the debt?

wymondham

Say put and save .... lots of people in the same position as you in the current climate...

soulheavensu

Like Artemis said we knew we would move for some time so decided to get married "while we could" My DMP final pay date is October then i will be able to cover household bills until OH pays off his. Our Debt will be gone soon.. i guess we just have to ride the storm..

BristolBob

You can't have everything you want, all at once, not matter how desperate you are. Pay off debt. Save. If you want, and can afford it, have a child in the two bedroomed flat. Remember to factor in childcare costs/reduced salary whilst on maternity otherwise you will end up back in debt with a child in tow. Remember that the sprog will be a financial drain for X (indefinite) number of years.

Yorkie1

Although I can understand why you want to move, it is perfectly possible to have a child in a 2-bed flat.

As the others have said, get on top of your debts first and then think about moving.