N Rock mortgage, now selling... what if we cant?

missyp123

Hi,

We have had our house on the market for 9 weeks now and knew it would be a tough time to be selling but we really have no option.

Our house was valued at 135k which is exactly the amount we owe NR with 105k being the mtg and 30k as the unsecured loan.

We have this week lowered the house price by 5k just to try and get some interest! We are also aware we will have offers much lower then the asking price but at the moment we just want out. (Our plan is to sell and move in with my in laws for 12 months to pay whatever debt is owing).

Now i am seriously starting to worry what we will do of we dont sell? We are currently on NR's variable rate (our fixed rate ended in feb) which we have had to put on interest only just to be able to afford the payments.

I have read a thread on remortgages and some people have metntioned remortgaging just the morgage amount they owe as they could go for 90% mtg's and leaving the unsecured debt with NR untill they can cover the debt with a different lender.
My income is now much lower after having our baby our combined income is aprox 32k including his annual bonus.

can anyone give any advice on this theory or any other options would be VERY much appereciated.... i am tearing my hair out!

cells

your only real option is to sell.

if i had to sell right now, i would take a cut before the market gets worse

put it up for 120k and cross your fingers.

if your earning 32k, you should be able to save 15k in a year (assuming your living rent free with the inlaws)

so it wount be the end of the world, you should make that 15k up within a year

good luck

minimike2

Now that the payments are interest only is the mortgage and all your other outgoigns now affordable?

maninthestreet

NR are unlikely to allow you to re-mortgage with another lender at 90% of the current mortgage, and convert the other 10% to unsecured debt - they will want the whole outstanding mortgage repaid if you re-mortgage with another lender. Even if they did allow this, the unsecured debt would be at a much higher interest rate, and would probably be at over a much shorter time period, than your current mortage, so your totally monthly outgoings would be higher than they are currently.

DOZYMARE

If I were you missyp123 I'd move in with parents now and rent out your property. You'll probably only just cover the interest only payments but then you should be saving money every month by living with parents and could perhaps afford to pay a little more off each month. Demand for rental properties is supposedly on the increase as more first time buyers cannot get a mortgage or are waiting until the price crash.

If you manage to stay with your parents for a year and can pay off a sizeable chunk of your mortgage during that time, AND the market improves you could be in a much better position this time next year.

missyp123

jsut been looking into things more and yes i do think the best thing would be for us to slash the price. unfortunatley we will have to buy our free hold too which is an extra 5k

we have looked into the letting option but we would have to pay towards the mtg which would make us much worse off.

thankyou all that have replied. if there are any other suggestions they would be very welcome.