We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Looking to sell and buy another property. Please help
NewGirl
Posts: 29 Forumite
Hi all
I am in a bit of a situation and was hoping some of you might be able to give me some friendly advice. If you manage to make it to the end of my post then thank you
Apologies if this is not the right section of the forum!
A few years ago I bought a property with a deposit booster. It is some sort of shared equity type thing provided by the builders. I don't pay rent on this portion, however, when I sell I have to pay them the 25% loan back based on the 'current value', agreed with the builder.
The property was bought for £110,000 but based on my research it is probably only worth around £90,000 - £95,000 now.
I really want to sell soon and buy elsewhere.
Now the tricky bit. I moved away from the area for another job and a friend is staying in the property - I cannot officially rent the property due to the loan.
My fixed rate ends at the end of the year and I had thought about trying to pay down some of the loan and signing up for a 4 yr fixed deal at 2%. However, I don't think I will be able to as they will know I don't live in the area and cannot be living there. Repayment of the builder loan would be required in order to get a landlord mortgage which I cannot afford and would not have a high enough LTV for this anyway.
I know this is not right of me to do this but I had to move and I was not in a position to repay the loan and change my mortgage and I cannot afford to sell... I didn't have the savings that would let me sell
My other financial info:
Loan: £6,000 outstanding (4.6%)
Mortgage: £74,000
Loan from builder: 25% £24,000ish)
Savings: £8,000 (5% for first £2,000 and then 1.5%)
I guess my question is how I should proceed:
Is signing up to a new fixed rate definitely out of the window? There is supposedly the option to port the mortgage buy I'm not sure how LTV affects this, as I'd be wanting to buy somewhere cheaper - ireland house prices are much lower.
Do I use the savings to pay down the mortgage and save like mad so that I can overpay when the fix ends and I go onto the 4% svr. I can overpay 10% without penalty during my fixed period
Do I hold onto the savings in case I do end up in a position to sell as I'll need it to repay the difference in the mortgage, and also for a new deposit.
Or I could just pay off the loan and use the extra money each month to overpay my mortgage.
I'm sorry if this makes no sense.
I have definitely learned my lesson about house buying
I am in a bit of a situation and was hoping some of you might be able to give me some friendly advice. If you manage to make it to the end of my post then thank you
Apologies if this is not the right section of the forum!
A few years ago I bought a property with a deposit booster. It is some sort of shared equity type thing provided by the builders. I don't pay rent on this portion, however, when I sell I have to pay them the 25% loan back based on the 'current value', agreed with the builder.
The property was bought for £110,000 but based on my research it is probably only worth around £90,000 - £95,000 now.
I really want to sell soon and buy elsewhere.
Now the tricky bit. I moved away from the area for another job and a friend is staying in the property - I cannot officially rent the property due to the loan.
My fixed rate ends at the end of the year and I had thought about trying to pay down some of the loan and signing up for a 4 yr fixed deal at 2%. However, I don't think I will be able to as they will know I don't live in the area and cannot be living there. Repayment of the builder loan would be required in order to get a landlord mortgage which I cannot afford and would not have a high enough LTV for this anyway.
I know this is not right of me to do this but I had to move and I was not in a position to repay the loan and change my mortgage and I cannot afford to sell... I didn't have the savings that would let me sell
My other financial info:
Loan: £6,000 outstanding (4.6%)
Mortgage: £74,000
Loan from builder: 25% £24,000ish)
Savings: £8,000 (5% for first £2,000 and then 1.5%)
I guess my question is how I should proceed:
Is signing up to a new fixed rate definitely out of the window? There is supposedly the option to port the mortgage buy I'm not sure how LTV affects this, as I'd be wanting to buy somewhere cheaper - ireland house prices are much lower.
Do I use the savings to pay down the mortgage and save like mad so that I can overpay when the fix ends and I go onto the 4% svr. I can overpay 10% without penalty during my fixed period
Do I hold onto the savings in case I do end up in a position to sell as I'll need it to repay the difference in the mortgage, and also for a new deposit.
Or I could just pay off the loan and use the extra money each month to overpay my mortgage.
I'm sorry if this makes no sense.
I have definitely learned my lesson about house buying
MFW :A
July 2015: £74,561.39
Current Balance: £72,587.90
Joined SwagBucks 23 July 2015
GC earned: £45
July 2015: £74,561.39
Current Balance: £72,587.90
Joined SwagBucks 23 July 2015
GC earned: £45
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.1K Banking & Borrowing
- 254.7K Reduce Debt & Boost Income
- 455.8K Spending & Discounts
- 247.9K Work, Benefits & Business
- 605K Mortgages, Homes & Bills
- 178.8K Life & Family
- 262.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards