mrapbp
Distinguished Member
Just wanted your thoughts on my current situation.
Now I am not looking for sympathy nor do I think of myself as a financial genius!! In fact quite the opposite, almost without exception I can be relied upon to make a mess of any financial decision I EVER make! Buy at the wrong time, sell at the wrong time and usually overextend myself....... I am financially retarded if such a thing is possible!
I bought a house 3.5 years ago and bought it for x with a 5% deposit.
After about 2 years the house price had gone up enough that we borrowed some if the equity to do some home improvements.
We now find ourselves in a situation where a an identical house is selling near us for £40k less than we bought for and with the loan leaves us in a situation where we are about £60k in negative equity.
Not as problem but we are due to come out of our fixed rate mortgage in Oct this year (another piece of financial wizardry on my part, long story but came out of the blue a bit) and it goes up by £600 pm. The idea was to re mortgage at the end of the fixed rate to cover the mortgage and secured loan, nice and tidy!
So I could re mortgage but at the current house value I wouldnt be able to get a new mortgage to cover even the existing mortgage amount let alone the secured loan. So not an option.
I feel a bit stuck here as I cannot see any way of getting out of this or getting it manageable other than to suck it up and pay the extra £600 pm. The other thing is that I am at the mercy of the variable rate now so could end up paying god knows how much.
Botton line is that my house isnt really worth £600 pm more and if the interest rates go up where do I draw the line.
Not good!
Now I am not looking for sympathy nor do I think of myself as a financial genius!! In fact quite the opposite, almost without exception I can be relied upon to make a mess of any financial decision I EVER make! Buy at the wrong time, sell at the wrong time and usually overextend myself....... I am financially retarded if such a thing is possible!
I bought a house 3.5 years ago and bought it for x with a 5% deposit.
After about 2 years the house price had gone up enough that we borrowed some if the equity to do some home improvements.
We now find ourselves in a situation where a an identical house is selling near us for £40k less than we bought for and with the loan leaves us in a situation where we are about £60k in negative equity.
Not as problem but we are due to come out of our fixed rate mortgage in Oct this year (another piece of financial wizardry on my part, long story but came out of the blue a bit) and it goes up by £600 pm. The idea was to re mortgage at the end of the fixed rate to cover the mortgage and secured loan, nice and tidy!
So I could re mortgage but at the current house value I wouldnt be able to get a new mortgage to cover even the existing mortgage amount let alone the secured loan. So not an option.
I feel a bit stuck here as I cannot see any way of getting out of this or getting it manageable other than to suck it up and pay the extra £600 pm. The other thing is that I am at the mercy of the variable rate now so could end up paying god knows how much.
Botton line is that my house isnt really worth £600 pm more and if the interest rates go up where do I draw the line.
Not good!