Negative equity help needed...

joshua2005

Hi all. Hoping someone can help. I purchased a house 10 years ago. At the peak of house prices. My morgage runs out in 6 months ( it was 10 yrs) . I owe £59k houses in the street are selling around £40k . The mirgage company have told me they are no longer doing morgages and havent since 2008. They want their money and i would like to keep my house. What can i do?

glosoli

Would you be able to bring the balance down to a level you would be able to remortgage (90%) by reducing the balance by £23,000 through cash savings or a personal loan? Of course this is not going to be cheap (if even an option), and your mortgage will likely have to switch onto capital and interest.

Otherwise, if the house is re-possessed and they sold it for £40,000 (or even lower), you would still be liable for the difference anyway, plus have costs of alternative accommodation.

What measures have you taken up until this point? 6 months until due date is not long to come up with a plan...

joshua2005

I was thinking i could see about a loan to pay the difference plus the savings i have. Which are not anywhere near the £20k plus i need. But i could afford it , at a push. And then remorgage

glosoli

Generally if you re-mortgage to another provider, a free valuation is carried out. This is key, as you will then know what you need to bring the balance down to 90% of. The higher value, the less you will need to pay off obviously. And then once you have this information, you could do costings for the personal loan, along side the new mortgage payment and see if you could do it.

You may be best sitting down with a broker and explaining your situation and gauge their thoughts (particularly as the personal loan repayment has to be factored in).