Neg Equity in NI-any other options with cash to put down

Thrugelmir

rover25 wrote: »

Originally was 35 years.

That explains a lot. In essence a double whammy.

rover25

Yep! Hook line and sinker!

Thrugelmir

What rate of interest are you paying on the mortgage?

rover25

4%. Def will start the overpayments again. Put a couple of hundred down each mth but will keep the larger amount to one side until I know if there is anything possible that can be done with it.

Thrugelmir

At 4% then overpaying is your best option. You may be surprised how quickly the debt reduces once the interest you are paying every month falls.

hildosaver

As suggested I think you are in a pretty tight spot and the best option is to sit tight for a couple of years and focus all your efforts on overpaying the mortgage and clawing your way out of negative equity. I was in a similar situation (though nowhere near as bad as yours) and am now out of negative equity - it can be done.

rover25

I know that's what we should be doing but more difficult now that our lo has started nursery beside my work. We had her down to go there because I teach in the school next door & she would get in with me. I am pregnant and due in Dec but wasn't able to go back in Sept as I am not well. This means an hr round trip every day for her to go to nursery. Next Sept she will be coming with me in the morning but I want her to be living more locally to her school (my work) to be closer to friends etc.
That's basically the scenario for us at the moment.

hildosaver

Yeah i can appreciate it is not an ideal situation but you have to understand that you made the choice to buy your house at that price and agree to the mortgage in the first place. Like I said, I was in the same boat (though not as bad) and we are two of many others who face the same situation in Northern Ireland. Sit tight, overpay like crazy and hope that prices continue to increase so that your negative equity decreases. There are no easy ways out of this.

rover25

Thanks for the advice, appreciate it. Think we will have a visit to the bank anyway just to see. It's going to get worse in Jan when I have to get a newborn baby out twice a day for the rd trip to nursery drop off & pick up. Just out of curiosity, if we were to get current mortgage down to level where the rent would be covered by 125%, would we have a big issue approaching another lender to purchase another property with a deposit?

hildosaver

With a joint income of over £60k you should be able to overpay by a fairly significant amount each month but you are probably several years away from realistically getting back into equity. You could enquire with your lender about getting permission to let and go see a broker to see what (if any) options you might have if you were to use your savings as a deposit on a new home. At least then you will know if it is even possible right now.