House Sale Deficit - Loan Advice

Rickster59

Hi, I have my house marketed for sale (have to sell due to personal circumstances) and expect to recieve offers that will result in a negative equity repayment deficit of approx £25k.
Would really appreciate any advice on converting the shortfall to an unsecured loan and best type of lender or specific lender to approach?
Thanks

DevCoder

1. How much do you earn, for a £25K unsecured (very rare) you'd be looking at needing to earn > £60K p.a.
2. What is your credit history like? defaults, missed payments etc?
3. What are your incomings and outgoings per month (roughly)?

Rickster59

I earn £50k per annum, have a good credit history and no defaults, missed payments etc. Also have car paid off and will have no debts, loans or credit card bills once I sell house apart from rental fees for new accommodation. My income roughly £2200/month, outgoings £1500/month (includes rent).

Thrugelmir

Is your existing lender aware that you ar selling the property?

longtermplanner

You don't need to 'convert' the deficit to an unsecured loan - after the sale of your house it will automatically become an unsecured loan.

Based on your description of your income & outgoings, you should be able to offer to repay it at say £500 a month.

Thrugelmir

longtermplanner wrote: »

You don't need to 'convert' the deficit to an unsecured loan - after the sale of your house it will automatically become an unsecured loan.

Lender has control over the sale of the property and who it is sold to.

arbroath_lass

Rickster59 wrote: »

will have no debts, loans or credit card bills once I sell house

Sounds like you have debts just now that you are planning on paying from the sale of your house? You can only do this if you have enough equity, your mortgage has to be repaid first.

jamesd

Your mortgage lender is the first natural party to approach because they must agree to the sale. You will find that the buyer's solicitor will block the sale, even at the last minute, unless the mortgage lender agrees to remove their charge on the property.

Rickster59

Thrugelmir wrote: »

Is your existing lender aware that you ar selling the property?

Yes, they are aware that it is on teh market, I have had initial discussions with them but not in any detail about covering the shortfall.

The reason I would potentially sell the house is that it is a burden that has become moreso as tenant is moving out.

iolanthe07

I earn £50k per annum,....My income roughly £2200/month.

This doesn't add up at all. Your income should be well over £3,000 a month (after Tax & NI) on an income of £50,000 pa.

Rickster59

Apologies error in above, correct income just below £2800k work benefits taken into account, outgoings approx £2k