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Neg Equity - what to do?
Comments
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Perhaps... Maybe I'll go and have a bit of a troll about and start positive, optimistic threads and other such mischeif. Or I could just get a life
Even if you start as a troll you'll get drawn in with our intelligent debate & witty banter :cool:"Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
ooooo HPC....seems MSE has many HPCers!
https://www.housepricecrash.co.uk is a very good source of information.
Just watch out for RealistBear, he'll tickle your tummy!I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0 -
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Guy_Montag wrote: »While your at it have a chat with a few EAs & see if there's much of a letting market - hint that you would use them as either the letting agent or selling agent.
No point in trying to turn it into a btl if there's such a flood of properties on the market that you never manage to get it let.
There's apparently a good rental market and it would achieve £550-6000 -
There's apparently a good rental market and it would achieve £550-600
Can someone tell me (& the op of course) what happens if your residential mortgage to one that allows you to let if the equity in you home is 100% of the mortgage value? If you see what I mean.
Put a different way - most blt mortgages are for 85%(ish) of the property value or require rent at 125% of the mortgage cost. In this case the mortgage is going to be 100% of the rental income (before voids, fees etc). From a bank's pov this looks like a poor risk."Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
Yep, can't see any banks allowing it.poppy100
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Guy_Montag wrote: »Can someone tell me (& the op of course) what happens if your residential mortgage to one that allows you to let if the equity in you home is 100% of the mortgage value? If you see what I mean.
Put a different way - most blt mortgages are for 85%(ish) of the property value or require rent at 125% of the mortgage cost. In this case the mortgage is going to be 100% of the rental income (before voids, fees etc). From a bank's pov this looks like a poor risk.
If your existing lender will allow you to let then you can continue with your current mortgage. If you had to search out a new BTL mortgage you wouldn't meet the standard criteria BUT a lender may allow it if you had surplus income. It would fail the standard mortgage criteria and go to the lenders underwriting dept for consideration. They would then take a view. To do this you would probably need an excellent credit rating and demonstrateable surplus income.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Actually the mortgage is for £100k . The remaining £30k came from a loan from Charles Church (the developers).
Not sure of the terms of that loans though.....0 -
keeperbear wrote: »During the last "crash", the 10% drop in my the price of my 1 bedroom flat was recovered within 12 months.
Hi KB, I'm confused as to where you stand.
On the forum discussions, you always promote house buying as an investment vehicle. You have mentioned above that you were living in the 1 bed flat during the last crash (in the 90's?) and you have also mentioned in posts that you no longer have a mortgage and that this means you will have a comfortable retirement (mainly due to not having to pay rent any longer). Finally, you have also mentioned that you are about 35 yrs old.
If all of the above is true, then how can you have any credibility when on the one hand, you encourage people to take on large mortgages so they can share the delights of home ownership and to invest in properties because they're such a good investment, yet on the other hand you yourself refuse to move up the property ladder and are happy to stay on the "FTB" rung with a 1 bed flat??
If property is such a good investment then why are you not investing?
If owning a property allows you to realise a pension by downsizing, then why are you not "upsizing" now during your working life so that you can "downsize"??
I'm sorry if this post comes across a little harsh, but in my book, if you "talk the talk" then you must "walk the walk"...Mortgage Free in 3 Years (Apr 2007 / Currently / Δ Difference)
[strike]● Interest Only Pt: £36,924.12 / £ - - - - 1.00 / Δ £36,923.12[/strike] - Paid off! Yay!!
● Home Extension: £48,468.07 / £44,435.42 / Δ £4032.65
● Repayment Part: £64,331.11 / £59,877.15 / Δ £4453.96
Total Mortgage Debt: £149,723.30 / £104,313.57 / Δ £45,409.730 -
Dithering_Dad wrote: »I'm sorry if this post comes across a little harsh, but in my book, if you "talk the talk" then you must "walk the walk"...
Thats about half this forum you've cast out(and most of HPC)0
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