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Bought a house in December 2006 and done a bit of work on it, but assume we're in negative equity. Bought for 121k, owe 113k.
I've heard on the radio that our mortgage provider (nationwide) are offerig up to 125% mortgages to exisitng customers, which i figure covers a deposit / shortfalls in equity plus loads of other conditions. Going to try and see them on Saturday.
We can probably afford an extra £400 a month on the mortgage but have no significant savings but have a loan and a credit card debt between us.
Any idea if we could get a mortgage for 200k at about £950 a month, taking into account potential -ve equity? Or should we sit tight a couple of years until we have more money?
125%??
Please tell me they're not starting that again
We have just got a mortgage for 170k at around that figure but that is on a ltv of 80%. There is also reports that house prices have climbed for the last few months though don't know it that is country wide. I would sit and try and save a bit more money rather than go into -ve equity
The only benefit to being in negative equity is if you have other debts. Debts that are too large to manage. You can go Bankrupt and not loose your house.
Sounds like we'd be best putting the extra £400 into savings / additional mortgage payments / holidays etc?
If you find a mortgage that will give you a rate of 3.85% you might, I would seriously doubt that would be fixed.
So if you got the 3.85% rate on a tracker that means that if the base rate goes back to a realistic 4% from 0.5% you would then be on 7.35% which would mean £1400 a month repayments!!
Sounds like a really bad idea to me...
I'm all for getting your self in more debt, it makes it so much funnier to the rest of us when it all goes wrong.
Was all spurred by looking on estate agents websites and thinkng 'what a bargain!'
You have no savings, a loan, a credit card debt and you are already in negative equity. If you can really afford another £400 a month, ask how come you're in this position. Pay off your loans and start saving that £400 a month for a few years
Go for it. Get further up that housing ladder while you can't afford it.