Newbie with questions about Negative Equity

Theonlywayisup_2

Hi,

I am intrigued to find out what you would do if you were in my shoes.... The circumstances I find myself in are as follows:

1). First time buyer who purchased a new build property in 2006, !in the North West of UK.

2). When purchased stupidly took out 95% mortgage and since then (stupidly again) a secured loan in 2007.

3). Currently in negative equity to the tune of circa £35,000 min.

4). Other houses on the development not selling, even when vastly reduced to less than purchased for in 2006.

I just cannot seem to find a solution, !I don't really relish the thought of paying over 60% of my monthly income each month into a bottomless pit/black hole.! Cannot remortgage due to negative equity and secured loan.

I can see no light at the end of the tunnel regarding house prices locally or nationally and it's really getting me down.

My partner has a good credit history (we are not linked financially). So we could rent somewhere without issue. When the house is repossessed and sold, I could then look to go into an IVA with the shortfall and my other debts.

I know I made some mistakes and hold my hands up, !but what would you do if in my shoes?

Thanks in advance.

foreversummer

Hi

Do you actually need to move? Negative equity is really not a problem unless you have to sell. Just continue to pay your mortgage and if you can afford to make overpayments that will reduce your debt quicker.

If you are saying that you can no longer afford the mortgage then that's another issue altogether of course.

Forevesummer