Moving home with negative equity.

Dave_Ham

bigadaj wrote: »

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

Do you know what, I questioned myself before I replied but the bit about kids and gardens got me and so tried to help.

Actually whilst it does not constitute good, formal advice; if a stark change in circumstances allows a loan to be used as a deposit so long as all are (affordable) then there are lenders that will accept this.

OP was after options, whilst this would never constitute formal advice; I hope it has given an option.

Whether practical or not is another question..

starsky27

Interesting thread this as I'm in a similar situation to OP in regards to wanting to move on with a family to a bigger place with garden etc.
I think the best advice is to save,save ,save and sit tight until your in a better financial position. I know from personal experience that it won't be easy but you are better saving and securing your families long term security than taking a risk with it just to get a garden etc in a shorter period of time.

Davie Ham offers excellent advice on this forum and has given you an option but I would think very carefully before looking to go down this route. His advice as he states in only an option and the cautionary tone of it speaks volumes.

All the best

y002cjw

This is a rather long posting so may have missed something.

Have you been to your lender and asked? If not do so.

I have found over the years that when you go in to the banks and tell them the facts relating to your circumstances you often get what you want.

As I said there is absolutely no harm in asking - you will know exactly where you stand.

I have given similar advice to young people looking to get on the property ladder - find out what you can borrow before looking for houses you may not be able to afford.

As I said I may have missed something but still good advice.

RobHolyhead

Simon_gloster wrote: »

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.

Are you serious? why don't I deserve help? If people read my original post and answered appropriately instead of telling me the only option is to save then I wouldn't have gotten wound up. Im FULLY aware the best way of moving house is to clear my negative equity and save for a deposit! I was asking if there were other ways.

Having bought a house in the past I'm well aware saving is a big part of the process.

You are all telling me to save and clear my equity as though its something I've gotten myself in to, where as in reality I bought at the hight of the housing "boom" and my house value has decreased because of the financial crisis and the river local to me flooded in 2007 neither of which is my fault is it?

And as a side note if any reference was made to the information in my signature its old and well out of date, I am fine financially apart from my negative equity.

y002cjw wrote: »

This is a rather long posting so may have missed something.

Have you been to your lender and asked? If not do so.

I have found over the years that when you go in to the banks and tell them the facts relating to your circumstances you often get what you want.

As I said there is absolutely no harm in asking - you will know exactly where you stand.

I have given similar advice to young people looking to get on the property ladder - find out what you can borrow before looking for houses you may not be able to afford.

As I said I may have missed something but still good advice.

Not yet, it is something I will be asking them later next week Thanks!

starsky27 wrote: »

Interesting thread this as I'm in a similar situation to OP in regards to wanting to move on with a family to a bigger place with garden etc.
I think the best advice is to save,save ,save and sit tight until your in a better financial position. I know from personal experience that it won't be easy but you are better saving and securing your families long term security than taking a risk with it just to get a garden etc in a shorter period of time.

Davie Ham offers excellent advice on this forum and has given you an option but I would think very carefully before looking to go down this route. His advice as he states in only an option and the cautionary tone of it speaks volumes.

All the best

I'm sure you can appreciate why i feel the need to move asap! Its awful for my daughter, shes 7 in November and loves been outside, I feel awful not been able to provide her with a garden:(

What other people don't seem to grasp it that if it takes 3 years for me to be clear of my negative equity and a further year to find a house to move to my daughter will be 11 almost 12 and will more than likely not be interested in a garden, she'll be more than likely in her room been grumpy sifting through collections of shoes and makeup!

Where I appreciate Davie's advice I am not willing to loan a deposit, following advice from my dad bridging loans as they used to be called are a bad idea!

ValHaller

RobHolyhead wrote: »

Are you serious? why don't I deserve help? If people read my original post and answered appropriately instead of telling me the only option is to save then I wouldn't have gotten wound up. Im FULLY aware the best way of moving house is to clear my negative equity and save for a deposit! I was asking if there were other ways.

Simon gloster was out of order. And a poster who generally urges saving has slapped him down. So no need to get bothered about it.

RobHolyhead wrote: »

..... You are all telling me to save and clear my equity as though its something I've gotten myself in to, where as in reality I bought at the hight of the housing "boom" and my house value has decreased because of the financial crisis and the river local to me flooded in 2007 neither of which is my fault is it?

I have suggested another approach as has another poster. Regardless of whether it is your fault, you are in the situation and your only way out basically is to save. Although as I suggested there are tunes you can play to make things go in your favour.

RobHolyhead wrote: »

I'm sure you can appreciate why i feel the need to move asap! Its awful for my daughter, shes 7 in November and loves been outside, I feel awful not been able to provide her with a garden:(

What other people don't seem to grasp it that if it takes 3 years for me to be clear of my negative equity and a further year to find a house to move to my daughter will be 11 almost 12 and will more than likely not be interested in a garden, she'll be more than likely in her room been grumpy sifting through collections of shoes and makeup!

People DO grasp your situation and your desire to give your daughter a garden. And there are 2 suggestions on this thread to help you do just that in the least amount of time. Both my suggestion and the other one are suggestions which we are reluctant to put forward but they have been given because we already appreciate your point that other approaches may not be fast enough for exactly the reasons you give.

Annisele

Another possible option, if OP can get consent to let on his current house, is to rent a house with a garden and live there. I accept that that's not a great option, but unfortunately OP isn't really in a position that has many great options available.

brit1234

Annisele wrote: »

Another possible option, if OP can get consent to let on his current house, is to rent a house with a garden and live there. I accept that that's not a great option, but unfortunately OP isn't really in a position that has many great options available.

And what happens 2 years down the road when he has to revert to a buy to let mortgage but his negative equity has increased as prices have fallen further?

2 Solutions
1, Cut costs, save, save ,save and pay off negative equity.
2, Sell at a lose, take out a loan for negative equity and rent place with garden.

Option 1 is the most sensible, which happens to be the one Thugmire suggested at the very beginning.

Annisele

Well yes - the other problem with the let and rent plan is that OP might not have the income to support void periods. Like I said, I don't think any of OP's options are particularly palatable to him.

Not everyone can afford a garden - I certainly can't!

Simon_gloster

Apologies from me, but you also wound me up. I want to so I'll show you how.

Halifax off an equity support scheme only for those customers in -ve equity.

If your looking to upside, as in this case, you can apply but cannot increase your LTV and still adhere to max 90% LTV for non new builds. You will be able to port your current rate (although unsure about HVR at 3.99%).

The tricky bit is the deposit and moving fees but options have been given, as for mortgage issues, should you pass their score and affordability rules a mortgage is available to you.

Hope all goes well.

RobHolyhead

Simon_gloster wrote: »

Apologies from me, but you also wound me up. I want to so I'll show you how.

Halifax off an equity support scheme only for those customers in -ve equity.

If your looking to upside, as in this case, you can apply but cannot increase your LTV and still adhere to max 90% LTV for non new builds. You will be able to port your current rate (although unsure about HVR at 3.99%).

The tricky bit is the deposit and moving fees but options have been given, as for mortgage issues, should you pass their score and affordability rules a mortgage is available to you.

Hope all goes well.

Thanks,

Something my wife actually came up with, If we could put in an offer in for the house we have seen at 90% value (and have it accepted), is there any way to go through without actually having a deposit?

We are more than willing to let out our house, in fact its something i would like to do as it would give me a lump sum at the end of my term..

I turned down selling at a loss basically because we have £67'980 left on our mortgage but there are houses for sale further down my street in immaculate condition for £52'000 and have been on the market for a few years without selling. This leaves us just shy of £16000 worth of negative equity.

Does anyone know the criteria for second mortgages?

Thanks