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Author Topic: Mortgages.  (Read 3315 times)

Offline Andy P

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Mortgages.
« on: 11 July 2011, 18:58 »
Anyone work with Mortgages or had much experience with them?

Basically we are looking to move but our place is worth less than when we bought it. Probably about 10k less. We are looking to buy a new place but it will cost more money. Currently we are fixed at 6% but looking to track base rate at the end of the year.

My question is are we realistically going to be able to borrow more money if we are in negative equity? If we bought a place to make money on, could we cancel out our equity that way?

Cheers :)
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Offline bobbarley

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Re: Mortgages.
« Reply #1 on: 11 July 2011, 19:13 »
I could be shooting widely here, but... If I were a bank and you were selling your house to be in negative equity, I'd want you to fork out the cash to put things square again.  You're better off staying put until the market sorts itself out to be honest.
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Offline Seanl

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Re: Mortgages.
« Reply #2 on: 11 July 2011, 19:35 »
As above your best off staying put for the time being. You will need at least a 10% deposit - more likely 20% tbh, and considering your current house is in negative equity, you will have to fork out even more to make up what you lent in the first place. Unless you are moving into a house worth less than your current one, it really isnt worth it.
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Offline R32UK

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Re: Mortgages.
« Reply #3 on: 11 July 2011, 20:49 »
Quote from: Andy P on 11 July 2011, 18:58
Anyone work with Mortgages or had much experience with them?

Basically we are looking to move but our place is worth less than when we bought it. Probably about 10k less. We are looking to buy a new place but it will cost more money. Currently we are fixed at 6% but looking to track base rate at the end of the year.

My question is are we realistically going to be able to borrow more money if we are in negative equity? If we bought a place to make money on, could we cancel out our equity that way?

Cheers :)

In short. NO.

You bought unwisely :wink:
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Offline Horney

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Re: Mortgages.
« Reply #4 on: 11 July 2011, 20:52 »
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Offline bored_Welsh_lad

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Re: Mortgages.
« Reply #5 on: 11 July 2011, 20:55 »
Quote from: R32UK on 11 July 2011, 20:49
Quote from: Andy P on 11 July 2011, 18:58
Anyone work with Mortgages or had much experience with them?

Basically we are looking to move but our place is worth less than when we bought it. Probably about 10k less. We are looking to buy a new place but it will cost more money. Currently we are fixed at 6% but looking to track base rate at the end of the year.

My question is are we realistically going to be able to borrow more money if we are in negative equity? If we bought a place to make money on, could we cancel out our equity that way?

Cheers :)

In short. NO.

You bought unwisely :wink:

Can't really say he bought "unwisely" as you never know when the market is going to crash or stabalise etc.. I am sort of in the same boat, split up with my fiancee, wanted to sell up, house is 10k down, so I took the place on myself, gave her 10k and started to rent the place out, financially i am in a bit of a pickle at the moment as I needed to take a loan on to buy her out.. but now i have someone in the place, got a trickle of money coming in so all is ok.

Have you thought about renting it and looking to buy another?
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Offline gibby

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Re: Mortgages.
« Reply #6 on: 11 July 2011, 21:01 »
The only way I can see you moving is if you move to a new build and the builders do you a good part exchange deal (possible in this climate), but even doing that you're going to need a fairly big deposit. Sit tight, change your mortgage if you can get a cheaper rate and save up a bit more would be my advice.

....oh yeah, and if you are in negative equity, make sure your mortgage is repayment and not just interest only so you are chipping away at the loan all the time.
« Last Edit: 11 July 2011, 21:03 by gibby »
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Offline vaughn

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Re: Mortgages.
« Reply #7 on: 11 July 2011, 21:03 »
Quote from: bored_Welsh_lad on 11 July 2011, 20:55
Quote from: R32UK on 11 July 2011, 20:49
Quote from: Andy P on 11 July 2011, 18:58
Anyone work with Mortgages or had much experience with them?

Basically we are looking to move but our place is worth less than when we bought it. Probably about 10k less. We are looking to buy a new place but it will cost more money. Currently we are fixed at 6% but looking to track base rate at the end of the year.

My question is are we realistically going to be able to borrow more money if we are in negative equity? If we bought a place to make money on, could we cancel out our equity that way?

Cheers :)

In short. NO.

You bought unwisely :wink:

Can't really say he bought "unwisely" as you never know when the market is going to crash or stabalise etc.. I am sort of in the same boat, split up with my fiancee, wanted to sell up, house is 10k down, so I took the place on myself, gave her 10k and started to rent the place out, financially i am in a bit of a pickle at the moment as I needed to take a loan on to buy her out.. but now i have someone in the place, got a trickle of money coming in so all is ok.

Have you thought about renting it and looking to buy another?

true, no-one knew the crash was coming?

shouldn`t your ex have paid you £5k to take the house on? as really your now £20k down?

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Offline AudiA8Quattro

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Re: Mortgages.
« Reply #8 on: 11 July 2011, 21:11 »
The main problem with mortgages is people over extend themselves.
I was offered a silly figure for a remortgage in 2007, if had taken it, it would of spelt alot trouble if the market sunk.
Always borrow wisely, whatever the current interest rate.
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Offline bobbarley

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Re: Mortgages.
« Reply #9 on: 11 July 2011, 21:20 »
I should be buying a house in the next 12 months fingers crossed.  The Mrs has just started working at Halifax, they do 0.5% for employees!  :cool:
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