Mortgages.

[kittie]

Just as I thought really. I didn't buy unwisely but the Market was at it's peak which nobody knew at the time. Also I only put down a 8k deposit. Now you need a massive deposit and there is no way I could afford a 25-30k down payment.

It's frustrating as I want a garage! I have the space to build one but if I do I will want the money I spend to reflect in the price. But this will then price me out of the "first time buyers" price bracket.

I don't have enough for a deposit for another place, unless I can release a bit of equity in the current property to put towards another.....equity that I don't have!

I could sell up and move to a really crap area but I really don't fancy that!

Luckily I'm earning about 15k a year more now so eventually I can borrow more.

Join the club! When we bought ours it was supposed to be a three year stop gap before moving somewhere else with a garage and another bedroom. But we're still there and I've got the itch to move so badly. Sadly we simply cannot afford to, while we aren't in negative equity we wouldn't raise enough of a deposit from a sale to move anywhere any bigger, unless it was a crap area 

But I do realise we're lucky to have our own place at all even if it's not ideal.

[Organisys]

Anyone work with Mortgages or had much experience with them?

Kind of.

Where do you live?

[nige_s]

Surely this totally depends on your loan to value and if you've borrowed to your max based on your salary.  The value of your current house doesn't really factor unless you have max'd out on what you can borrow and had 95% mortgage and are definitely in negative equity.

[Mr_F]

some mortgage lenders allow you to transfer your mortgage, might be of interest, just go chat to your mortgage people and see what your options are.  Cost them up, see what you want to do and be weary that Mortgage people try to make money out of you.

[Andy P]

Anyone work with Mortgages or had much experience with them?

Kind of.

Where do you live?

We live in Newquay, Cornwall mate. The area we live in is perfect and to be honest the place across the street is just what I want but it's about 30k more than ours.

We got a 95% mortgage 4 years ago it's due to run out in January. So we will look to re-mortgage then. Hopefully our house will rise in value before then, hopefully the interest rate will not

[nige_s]

I don't see why you can't move house even if you are in negative equity.  So long your income allows you enough funds to borrow what the new house is worth, you'll have to factor in whatever extra you need on top of what you sell you current house for.  For example in very basic terms:

New house value: £130k
Current house value: £90k
About borrowed initially: £100k
Extra amount you need to borrow for new house: £40k
Total borrowed: £140k (provided your income allows this)

Problem is not many lenders at the moment want borrowers with high Loan To Value % such as your 95% so will most likely require you to put a bigger deposit up front to reduce the LTV as you do not have any equity in the existing property you will need to start saving.  So in effect if you use the figure above you'd want to get that £140k borrowed down to about £120k by saving up a deposit of £20k, then the banks might be interested.

[Organisys]

Reason I asked where you live is a family member if a proper Independent Financial Advisor, but you are too far away really.

[gibby]

I don't see why you can't move house even if you are in negative equity.  So long your income allows you enough funds to borrow what the new house is worth, you'll have to factor in whatever extra you need on top of what you sell you current house for.  For example in very basic terms:

New house value: £130k
Current house value: £90k
About borrowed initially: £100k
Extra amount you need to borrow for new house: £40k
Total borrowed: £140k (provided your income allows this)

Problem is not many lenders at the moment want borrowers with high Loan To Value % such as your 95% so will most likely require you to put a bigger deposit up front to reduce the LTV as you do not have any equity in the existing property you will need to start saving.  So in effect if you use the figure above you'd want to get that £140k borrowed down to about £120k by saving up a deposit of £20k, then the banks might be interested.

Mortgages are not just about ability to pay it's also about the risk to the lender, so even if someone can afford to cover 140k salary wise, a lender is not going to lend that money secured against a house that's worth 130k. Yes you can move if in negative equity if you have the deposit to cover the new house etc, but I think that's the whole point, the OP doesn't have that as he mentioned earlier. The above just proves the very reason why you will have trouble moving when in negative equity. 

[houston]

have you actually rang up your mortgage lender to find out? im in the middle of doin the same thing right now, only losing 2k on our flat if it sells at the asking price but i see it as the best oppertunity we have right now of moving into a house.

im with northern rock (nram now) and the only thing theyve said is they will let me lose money on the flat sale and swap it to an unsecured loan if the house we buy is less than the balance remaining.

if your in no hurry to move then get saving, even a few quid helps