Moving home with negative equity.

Thrugelmir

RobHolyhead wrote: »

Thanks for the advice but that's not what I asked.

We don't have time to wait until our current house is no longer in negative equity, if we wait for that our daughter will probably have moved out!

I'd be lying if I said there was an easy route. The inherent danger is that a greater level of debt merely worsens the risk of an even greater fall. Life is about choices. Buy now pay later is a cause of many of today's personal financial problems.

bigadaj

Dave_Ham wrote: »

Not necessarily, I have just seen clients solve this by taking an unsecured personal loan when in negative equity

As I said, totally against good advice but if affordability has significantly increased then either borrow it, or as above says save, save, save for the deposit and then get consent to let..

Dave, I know the intention is to help, but isn't this against the rules for almost any mortgage lenders, borrowed deposit?

RobHolyhead

bigadaj wrote: »

Dave, I know the intention is to help, but isn't this against the rules for almost any mortgage lenders, borrowed deposit?

I know a few people who have done this. Also when i signed for my house it was never stated to me it couldn't be a loan. Lets face it, the banks don't give a rats behind along as their getting something from you!

bigadaj

RobHolyhead wrote: »

I know a few people who have done this. Also when i signed for my house it was never stated to me it couldn't be a loan. Lets face it, the banks don't give a rats behind along as their getting something from you!

It'll be in the paperwork though, with full penalties if discovered and enforced, your funeral at the end of the day.

ValHaller

RobHolyhead wrote: »

I know a few people who have done this. Also when i signed for my house it was never stated to me it couldn't be a loan. Lets face it, the banks don't give a rats behind along as their getting something from you!

I think you are 5 years out of date with this. You are in negative equity and unfortunately you have considerably less room to manoeuvre.

Now let me explain. If you had positive equity, you could use your affordability to get another mortgage for another house where you would have the desired garden. And the lenders in that case would not give a rats behind as long as you continued paying. If you lost your job and had no income, there would be time for you to dispose of assets and get yourself straight.

But as you are with negative equity, if you lose your job, you will sink almost straight away, which is why responsible lenders will not want to lend more to you - it only increases the risk and the consequences of you going under financially.

There is another way of going at this. You could save as I suggested based on your mortgage affordability. You could also take out some credit cards and start loading your everyday expenditure on to them paying back minimums each month. But you still need to save hard and live exactly within your means. So the money you would use to clear the cards in full each month you would also need to put towards your mortgage. Possibly in 15 to 18 months you could clear your negative equity and rent a property with the garden you desire.

You would then need to pay the credit cards back down and start saving another deposit. I only suggest this angle as a means of getting a garden. If you did not need it, I would suggest that you stay where you are and pay the mortgage down. As ever, if you do this sort of thing, you need to keep on top of the credit.

Thrugelmir

RobHolyhead wrote: »

I know a few people who have done this. Also when i signed for my house it was never stated to me it couldn't be a loan. Lets face it, the banks don't give a rats behind along as their getting something from you!

Times have changed. Credit is far harder to obtain if you don't meet lending criteria. Banks certainly do care now. As increasing rules and regulation is forcing them to do so. Many customers have yet to realise it is they that are now suffering the consequences.

kingstreet

LBG does have a negative equity product available to Halifax borrowers, among others. However, you have to reduce the loan to value by paying a deposit;-

http://www.guardian.co.uk/money/2011/jan/27/negative-equity-mortgage-lloyds

Simon_gloster

This poster doesn't deserve help. As is stated, there is a way out of this, but do you know what, I'll keep it under my hat and release the info to someone else. Ta.

Thrugelmir

Simon_gloster wrote: »

This poster doesn't deserve help.

Everybody deserves help. Then the decisions up to them to make an informed choice.

Simon_gloster

The correct and only outcome is in the thread should he not wish to sell at a loss.