Negative equity mortgage advice

stevs73

Hi all,
So long story short. I bought a house in 2007 just before the big crash. As I was just out of a divorce I took an interest only mortgage. This has left me in negative equity of about 10k. To make matter worse my mortgage is with NRAM (Northern Rock).
I have since remarried and live with my wife and rent my property. My negative equity is down to about 6 or 7k.
I am stuck with my interest only mortgage as NRAM wont let me move. I am making overpayments.
I just wanted advice if there is anyway I can get out of this any sooner or how I can change mortgage provider.
Thanks

MortgageMamma

When you say you rent out your house do you mean the one you live in now with wife or the one that is in negative equity?

Caz3121

are you currently overpaying the mortgage?

Thrugelmir

Keep chipping away with the overpayments. Whatever you can scrape together to reduce the balance owed will in time accelerate the process.

stevs73

I rent out the house with negative equity.
NRAM charge me £300 a year for the privilege
I live with my wife in her house.

I do make over payments, that how I have got the negative equity down a bit.

middleclassbutpoor

how much is the secured/unsecured element and how does this compare to the value of the property.

For example - House valued at £200k - Mortgage = 190k & Unsecured = £20k.

If similar to the above, you could sell your property and repay the mortgage and pay your selling costs. You could then place anything left over to reduce the unsecured element further.

You may then be in a position to refinance the unsecured bit through a personal loan as the interest rate increases when you de-link the unsecured loan from the mortgage.

You also may want to consider whether you could be better off in terms of the cost of being a landlord put you in a better/worse position. Less tax being paid for example, or shortfalls/annual fees to pay...

Could do with understanding the values and what your mortgage costs are compared to your rental income etc. That may help us understand whether the best thing is to continue as is or whether you can do something sooner to rid the burden of this debt on you.