shifting mortgage and debt

sexton1875

Hi all.

First post, and this has probably been covered before...

I bought a flat with my then girlfriend, now wife in 2008. Interest only, and the going rate for the flats are now considerably less than we bought it for.

We have now seen a place of the same value with an extra room, which would suit us as we have a child now and wonder if anyone knows if it is at all possible to sell the old place at a loss and incorporate this into a new mortgage on the new place?

This move would most likely be our last and I would be happy to stick another 5 year or so on the term to accommodate this.

Do things like this happen or am I pretty much stuck?

Thanks everyone.

kingstreet

You are not likely to have an option.

LBG has a negative equity scheme for its existing borrowers, but you have to have a deposit and you have not mentioned if this is the case.

http://news.mortgagerates.org.uk/945/

http://www.theguardian.com/money/2011/jan/27/negative-equity-mortgage-lloyds

sexton1875

ah ok.

At this precise time, we have started saving again as our last cash got us married. So little deposit aavailable just now.

My mortgage just now is with Northern Rock (although I think it was transferred to another firm on their behalf, but ive not had a statement in about 3 years do can't remember the name)

kingstreet

Some Northern Rock mortgages were moved to NRAM, Northern Rock Asset Management. You cannot port if in negative equity. They will allow you only upto the original loan to value, so if you had 95% before, you can have 95% again, but they will only lend you what you owe now, or less.

sexton1875

Thanks for that.

Yeah, NRAM is the company!

I bought my place for 122,000 and I think the going rate is between 105 - 110, which is where my problem lies.

The place I have found is offers around 125,000.

any ideas on what I can do here? Other than ride it out and try and save the shortfall.

Many thanks!

kingstreet

If you can't clear the negative equity and come up with a 5% deposit, there's nothing you can do.

As I said, they will allow you upto 95% of the purchase price again, but you cannot increase the mortgage.