Negative equity options

bpmoneill

I bought a house back in 2007 and lived there for 7 years. The mortgage was interest only as the intention was to build elsewhere. I moved back to my home place to build but was unable to sell the house as it went into negative equity. I am living in my new house currently and I have rented the other house ever since but the rent doesn't cover the mortgage and I pay rates and maintenance on top. I estimate it has cost me between £150 and £200 a month since then just to keep the house. Due to the negative equity I have no options to remortgage. I really want to sell now and the market has improved but I've had very few viewings. It's currently listed for £120k and the mortgage is £123500. With the property up for sale I now have no one in paying rent so i am going to have to pay 2 mortgages for the foreseeable until I can get it sold. Are there any options to settle directly with the bank? Or is there anything else that can be done? Many thanks in advance for any help.

Thrugelmir

The shortfall will need to be settled. Can you secure a loan against your home? 

bpmoneill

I would imagine that is possible. I plan to contact the bank tomorrow and see what options there are. I am concerned though that this approach may have a negative effect on my credit rating.

blue_max_3

You don't cover the interest only mortgage with the rent? Grief! Where on earth is this?

davidmcn

blue_max_3 said:

You don't cover the interest only mortgage with the rent? Grief! Where on earth is this?

Mention of "rates" suggests Northern Ireland.