I have a situation and im not sure what is the best way to proceed forward.
I bought a flat on a 100% mortgage, 5yr fixed rate. I lived there for about a year until i met my girlfriend. Living there was logistical nightmare so i looked to sell but house value had fallen below outstanding mortgage and mortgage had a £5k early settlement charge. I was advised at the time to rent it out, even though it is not allowed under my mortgage. I spoke to them at the time and a switch to buy to let would still trigger the £5k charge. So i have been renting it out for the last 4 years no problem.
Last year I bought a house with my girlfriend, again I looked at options on the flat but still negative equity and still incur £5k charge. The 5yr fixed term is up next month and I need to know what options are available to me. As it stands the potential value of property is £100k and have £108k outstanding on mortgage. With the new house we have mortgage, car hp and credit cards, so seriously doubt i could afford/be available to borrow the £8k. Also due to the fact im letting out the property without permission from lender, I am wary as to who i can ask. Ideally id either like to sell or rent it legitamitly.
When I enquired about mortgage balance, I was informed that lender wants out of english market so their products all have ridiculous rates to encourage you to go elsewhere.
Could someone please provide any advice as to what my options are?
I bought a flat on a 100% mortgage, 5yr fixed rate. I lived there for about a year until i met my girlfriend. Living there was logistical nightmare so i looked to sell but house value had fallen below outstanding mortgage and mortgage had a £5k early settlement charge. I was advised at the time to rent it out, even though it is not allowed under my mortgage. I spoke to them at the time and a switch to buy to let would still trigger the £5k charge. So i have been renting it out for the last 4 years no problem.
Last year I bought a house with my girlfriend, again I looked at options on the flat but still negative equity and still incur £5k charge. The 5yr fixed term is up next month and I need to know what options are available to me. As it stands the potential value of property is £100k and have £108k outstanding on mortgage. With the new house we have mortgage, car hp and credit cards, so seriously doubt i could afford/be available to borrow the £8k. Also due to the fact im letting out the property without permission from lender, I am wary as to who i can ask. Ideally id either like to sell or rent it legitamitly.
When I enquired about mortgage balance, I was informed that lender wants out of english market so their products all have ridiculous rates to encourage you to go elsewhere.
Could someone please provide any advice as to what my options are?