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Remortgaging with negative/little equity
Jones1981
Posts: 2 Newbie
Hi, this is my first post in the forums. I wonder if anyone could help.
I stupidly took out a Northern Rock mortgage 11 years ago and I have paying interest only throughout that time. Why I have not changed to repayment I do not know, I would love to get out of my deal and remortgage and start paying the mortgage back. The problem is, I owe the same amount that the property is currently worth.(90,000) Is there anyway around this? The mortgage is split into secured (79,000) and unsecured (11,000). Would it be possible to remortgage the secured portion as I would have equity here and then just pay off the unsecured like a personal loan.
In addition, I have a range of other debts so my my credit score is not brilliant (not horrific either though).
I am not in a good situation right now and really keen to put this right. Any help would be great appreciated?
I stupidly took out a Northern Rock mortgage 11 years ago and I have paying interest only throughout that time. Why I have not changed to repayment I do not know, I would love to get out of my deal and remortgage and start paying the mortgage back. The problem is, I owe the same amount that the property is currently worth.(90,000) Is there anyway around this? The mortgage is split into secured (79,000) and unsecured (11,000). Would it be possible to remortgage the secured portion as I would have equity here and then just pay off the unsecured like a personal loan.
In addition, I have a range of other debts so my my credit score is not brilliant (not horrific either though).
I am not in a good situation right now and really keen to put this right. Any help would be great appreciated?
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Comments
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The max I would expect you would be able to remortgage would be 90% of property value. This will leave a shortfall on the unsecured side of things mind.I am a Mortgage Broker.
You should note that this site doesn't check my status as a Mortgage Broker, 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 advice0 -
I agree, 90% is what I told everywhere. The property is worth £90,000, the mortgage remaining is £79,000. If I could shift the unsecured loan amount, I could remortgage?0
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Yes, in theory....I am a Mortgage Broker.
You should note that this site doesn't check my status as a Mortgage Broker, 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 advice0 -
Although you haven't ever switched to a repayment, is there anything stopping you from overpaying whilst paying interest only, to knock down the capital, build up equity and reduce your LTV??
Edited to say: (Other than your other debts, missed that sorry :S)0
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