Mortgage dilemma

Pixie5740

Thrugelmir wrote: »

Sell the property and use your savings to clear the negative equity. The longer term dangers are that interest rates will rise and/or the property will require refurbishment/maintenance. Resulting in an even greater financial loss. As difficult as it maybe cut your losses.

The OP isn't in negative equity. The outstanding mortgage is £133k and the property has been valued at £150k. Given it's an interest only mortgage I would get rid and bank the proceeds.

Lynith72

If I use my income from pension plus my rent 650 a month and apply for a btl....will that be a repayment or interest only?

enthusiasticsaver

John_G_Jones wrote: »

How has it dropped so much? I’ve a house in Newcastle and looking at prices sold it seems to be worth about the same as it was four years ago.

Brand new properties are often sold at a premium so as it was bought presumably brand new at the peak of the markets in 2007 as it is 10 years old this could be a reason. I am surprised too though that it has lost more than 20% of its value but I know properties in the North have not recovered as well as in the South of the country.

Lynith72

It's in an old pit village. Half the estate was built in the Peak at around £200000 but after the crash same house on the other side of the estate sold for £150000. They are selling at same value? Housing developer saw us coming....

enthusiasticsaver

Lynith72 wrote: »

If I use my income from pension plus my rent 650 a month and apply for a btl....will that be a repayment or interest only?

I very much doubt you will get interest only but you need quotes to make sure it is affordable before you even think of applying. Income multipliers generally used are up to 4 times gross income. BTL mortgages insist generally on a 25% deposit and may be more expensive than a residential mortgage and you will not be able to get a mortgage past 70 so if you are 53 then the maximum term will be 17 years. Interest only will obviously be cheaper if you can get that but then you need a plan to repay it when you reach 70.

Lynith72

I need a miracle. I need a very understanding landlord to buy my property with sitting tenants. Moving away all my problems. The bonus with my house is its not overlooking other houses and the side it's built on is the houses are more spaciously set. The newer side they are too close together

Lynith72

Martin Lewis mentioned the other night about mortgage problems due to circumstances beyond control. I've never missed a payment in 10 years and have a really good credit score. ...

enthusiasticsaver

Lynith72 wrote: »

Martin Lewis mentioned the other night about mortgage problems due to circumstances beyond control. I've never missed a payment in 10 years and have a really good credit score. ...

I am not quite sure what you are hoping for? Are you wanting to apply for a new mortgage in just your name or to sell the property. If you apply for a new mortgage in just your name how does that help you? What difference will that make?

Lynith72

It's like keeping your cake as it's bricks and mortar. I would love to get a repayment Morgan on better rate which would finish in 15-17 years. Hopefully the value will increase and I can leave it to my sons. With my income at present I can see no way of doing this. I can pay my mortgage now and paying over payments but will have a shortfall in the long run...... so the question is ...do I keep and hope the valuation goes up......do I try for new mortgage based on my circumstances or do I just sell.....it's so stressful. I appreciate everyone's comments.....I think I was hoping for a miracle.

Lynith72

If I get a new mortgage, better rate longer term.