need opinins on my mortgage problem...

Tomz0r

Hi,
To kick start it off yes i was one of them idiots when i was young and stupid that got an 105% loan with northern rock and brought my first property...

Great 1 month later recession hits and my property of 110000 is now worth 92000 still to this day and its hurting i have a young family and now we desperatly need a bigger place.....
Im now currently saving 500 a month and have so far saved 2500 (5 months worth) in the mean time we only want a place which is worth 110000 again lol moving from a small 2 bed to a medium 3 bed....

My mortgage has changed names more than i care to know and call themselves nram now and they dont lend out any more money for if i was to sell and geta bigger mortgage and every other mortgage company wont touch us because my property at the moment is in negative equity...

I have 0 other debts apart from my mortgage and feel i could easily afford a bigger place...
My bank said they will if we could get a deposit of 15000 ..
So is my only option to save for 3 years? That would push my family to the limits its really cramped....
Ive been advised to stay away from getting a loan for a deposit lol

Any opinions i will be greatfull for as i dont know what to do thanks
Tomz0r

Dave_Ham

First of all, you need to qualify exactly how much of the NRAM is a mortgage (secured) and a personal loan (unsecured)

This may present options to you, as you may not be in negative equity and whilst you potentially pay a higher rate on the unsecured, clearly you can afford it with your current saving..

Good luck

witchy1066

I am not a mortgage advisor so can only say what I would do in your position,
personally I would be overpaying as much off the mortgage as I could every month

how would you be able to pay off your mortgage and get another if you owe more on the house than its worth?

Tomz0r

Thanks a lot for reply
98000 secured
12000 unsecured

I cant say the exact amount but its not far off them numbers at all that i still owe

Tomz0r

Thanks for reply witchy ive thought about this but it would still take a long time too break even or come into positive equity and doesnt solve the problem that 2 small bedrooms on a small maisonette is too small for 2 adults and 2 kids...
I will do if theres no other options but will make me cry lol

Dave_Ham

Then your options are either save, save, save and conventionally move or consider letting property out and/or renting or buying.

Whilst it is not good advice, there are lenders that would not jump all over your application if part-financed by a loan so long as the overall mortgage/purchase was affordable.

Capital letters not good long term advice, although being in a cramped house with growing family is not a good long term call either.

I wish you all the best

Tomz0r

Dave ham thanks for your help
A sit down with the bank is in order ...

_Andy_

"Ive been advised to stay away from getting a loan for a deposit lol"

that wouldn't work anyway. No lender will accept it.
Not sure why it's a 'lol' matter either.

Thrugelmir

Pay down the loan rather than put money into savings.

Irrespective of the fact that you have negative equity. The capital owed has to be repaid at some point in time.

amnblog

_Andy_ wrote: »

"Ive been advised to stay away from getting a loan for a deposit lol"

that wouldn't work anyway. No lender will accept it.
Not sure why it's a 'lol' matter either.

Not accurate Andy. If it is affordable it can be accepted if you use the correct lender.

amnblog

Thrugelmir wrote: »

Pay down the loan rather than put money into savings.

Irrespective of the fact that you have negative equity. The capital owed has to be repaid at some point in time.

If you pay down the loan you pay down the unsecured element.

Why would you do that if the issue is negative equity?