Mortgage shortfall

pokemon151

I've put my flat up for sale and it is less than what is owing on my mortgage.
I called the morgage company and asked if I wanted to settle but there was a shortfall how would I go about repaying.
They told me that there were no provisions for shortfalls and it would have to be settled in Full.
The reason for selling is that the rental is lower than the morgage payments so I 'm paying money in that I could be using elswhere.
How could I go about this negative equity issue, sell and owe then the difference in payments?

herbiesjp

Is this a BTL?

Raise the money against your main residence/ personal loan?

tawse57

What sum difference are we talking about? Let us know and perhaps we can better advise dependent on the size of the difference between the mortgage and what you might get for it now. What did you play for the flat and what price do you have it for sale now? Do you have a buyer ready to exchange contracts?

Bearback

You might not be able to sell now, you have missed th boat because mortgage approvals are plummeting.

Kez100

When we had negative equity we had to save ourselves out of it so, on completion, all the money was there ready and waiting. I suppose our other option would have been to borrow elsewhere unsecured. Options will depend on how much you need to find. Ours was 4k.

Weeks of eating pasta and tomato sauce for us! I still remember it now but, apart from not being able to face red pasta, it didn't do us any harm.

pokemon151

It was a first time home option that I bought for £61000.00
The outstanding amount is £59000 less £2900 early penalty fees.
It is on the market for £56000 just to rid myself of it so the shortfall is £2900 plus £2900 early penalty, providing it sell for that amount.
Plus there is still all the legal fees and commision once it sells.

Kez100

Do you have any savings? Excess income you can save from? When does the early penalty expire?

pokemon151

Im already on the breadline. I took a career change which Im loving, however a decrease in salary went with it.
No savings as it is used to pay off family debt

Weeks of eating pasta and tomato sauce for us! I still remember it now but, apart from not being able to face red pasta, it didn't do us any harm

LOL
I wish I ate so well, kids come first then I get whats left, well almost

Kez100

So, you live in this property but want to leave and rent because it's cheaper?

SouthCoast

first time home option

Are you in a shared ownership Housing Association property?

pokemon151

No, I live with my Fiance at her home sharing the bills and rent this property out.
The only reason I bought it was to get onto the property ladder and because you didnt need a deposit.
It is ex-council but I bought it private.