Selling For Less Than Your Mortgage

Snafu86

We have our house on the market and have done for the last year. We need a bigger house for us and our 3 children.

The house originally went on the market for 85,000 but is now at 69,950 which has blown away our profit. We have around 65,000 left on our mortgage. Once fees etc have been paid if we sell then we are left with next to nothing for a deposit.

My query is what are our options if we sell for less than what's left on our mortgage?

We need to move, so we need to sell our house as soon as possible which may mean we need to reduce it right down to get rid before we can move on.

Would our mortgage company (Halifax) be able to help? Could we still buy without a deposit?

We do have an impeccable record paying our mortgage and all other bills.

Thanks,

David

amnblog

You cannot sell for less that your outstanding mortgage without the permission of your lender.

The difference in the purchase and current sale prices are not the responsibility of the Lender and unfortunately you will not get any special treatment.

If you emerge with a limited deposit, you should perhaps consider the Help to Buy equity loan scheme where a 5% deposit is sufficient.

Snafu86

ok..so basically we are better off sticking where we are and taking it off the market until next year maybes and putting it back on at its original price?

chelseablue

Id stay where you are if you can

Thrugelmir

Any options to extend or reconfigure your existing property?

foxy-stoat

Stay put and make as many overpayments as possible.

nathand_2

Maybe you could consider letting the property for 12 months rather than staying put (after obtaining consent to let of course). Maybe things will have picked up in 12 months time allowing you to walk away something from the sale and in the meantime you get to move on to somewhere bigger.

MerrilyA

Do you know the reason why your house has been on the market for so long? Can you do something to rectify the issue?

If not, then it may be a good idea to stay where you are and keep your eye on the market so you can sell when it picks up (if it does). Perhaps build up a good connection with some agents and they can assist you in the best way to sell your home. If the market doesn't pick up and you still want t o leave then it's best to think of the options you have and prepare so you're ready for all outcomes.

K1RST1E_2

I sold my shared ownership home for less than the mortgage but had the money to pay back to the bank. I too was with Halifax.

They do a scheme where you'd take the difference as a loan with them. It's worth giving them a call if you want to pursue that avenue but you're not going to be able to buy without a deposit.