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Need advice please
TheHutches
Posts: 8 Forumite
Me and my wife currently have a mortgage which was with Northern Rock now it's NRAM. We want to move but sadly we are unable to sell due to us getting a 110% mortgage and not having enough equity in our house. So we've decided to rent out our house and buy a second property only (once again) the fantastic NRAM are blocking it saying we can only rent our house for 12 months and we'd have to pay a £1000.
Has anyone experience similar? Or does anyone have advice on how we can move?
There is no option, we have to leave the area we currently live in to the point where we have considered just giving NRAM the house and renting.
Has anyone experience similar? Or does anyone have advice on how we can move?
There is no option, we have to leave the area we currently live in to the point where we have considered just giving NRAM the house and renting.
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Comments
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A fee, increased interest rate, or both are the usual costs of consent to let from a mortgage lender.
For example, Halifax would want you to accept a 5.49% three year fix with £999 fee.
FWIW you can repay only the secured element of Together and keep the unsecured loan. Although the rate will increase to 12.79%, it can often still be manageable due to the length of the mortgage term.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
They can charge to change the mortgage terms. Renting is not what you agreed to do with it at the outset.
How much deposit do you have for the new purchase as a percentage?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
You need to tackle the lack of equity in the property by paying the mortgage down. I assume that your mortgage is interest only. So are little more than renting the property.
Handing the keys back is an option however the negative equity won't disappear, and will leave a black mark on your credit record.0 -
Nope not an interest only, and a black mark really wouldn't be an issue all we want to do is buy a bigger house if we can't do that we might as well cut our losses take the black mark and rent. We could rent somewhere twice the size of where we live now for the money we pay. They wouldn't be able to come after much money as the actual mortgage would be covered by the sale of the property it's the loan that is causing an issue.
We have approximately 5-10% for a deposit. I don't mind paying the charge if I'm honest it's the 12 month part that is the issue.0
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