Hi All,
I would like some advise on my situation, i am pulling my hair out and think there may be limited options left to me other than sell up, call it quits and go back to renting.
Back in 2009 my wife and I brought a 2 bedroom apartment for £165,000 from house builder Crest Nicholson, until then we had rented for 7 years or so, but got fed up with being moved on every time the landlord wanted to sell up. Everyone advised us that we were throwing our money down the drain and to buy, yet only had funds of about £10,000 available at the time so had limited options and ended up on a scheme called "Easybuy", this is where we brought 85% of the apartment and crest nicholson give us interest free the other 15% via a second charge to be paid back in 10 years.
Situation today - we now have a 6 month old baby and my wife has given up work, thus the amount I can save per month has dropped, however are desperate to move due to real lack of space and estate being overtaken by undesirables.
Problem is getting a new mortgage moving forward, my bank has advised they have no issues giving me up to £166,000 mortgage however when I discussed this all with them I don't think they fully took into account my situation:
Here are the facts:
I have £128,761 settlement on mortgage
I owe the house builder on their "easy buy" scheme, 15% of the sell price which will be around £20,625 based on a realistic sell price of £137,500
This makes total debt on property £149,386
That means, if we sold, we have £11,886 negative equity to put somewhere (i.e. on the next mortgage)
Available savings - £15,000
So
If we brought a house with a value of £150,000
would we add on the £11,886 making upfront cost of £161,886
90% of this amount is £145,697, with a deposit of £16,188.60 - certainly possible to achieve and based on my discussion with their mortgage advisor and these facts, I chose to place my home on the market either this week.
HOWEVER, last night I was going over the numbers again and the way i'm reading it is, that makes it 97.1% of the property value.. which i'm assuming I can't have?
So - 90% of a property value of £150,000 is £135,000
So this means then, we would need to bring the mortgage down to £135,000 by increasing deposit by another £10,697 to a total deposit of £26,885.60 - not possible and unlikely any time soon given reduced savings amount, even though I can afford the monthly payments on their £160k mortgage at £908pm (not too much different to what I pay now if you factor in the service charge/ground rent)
My current bank, mortgage lender and investment funds are all with the Halifax, when I search online on sites like money.co.uk it suggests Halifax offer higher than 90% LTV mortgages however the lady I spoke with on the phone did not mention this (even though she said i was in their highest credit bracket)
Thanks for listening and I openly welcome your feedback and advice, mortgages websites are making my head spin.
Marcus
I would like some advise on my situation, i am pulling my hair out and think there may be limited options left to me other than sell up, call it quits and go back to renting.
Back in 2009 my wife and I brought a 2 bedroom apartment for £165,000 from house builder Crest Nicholson, until then we had rented for 7 years or so, but got fed up with being moved on every time the landlord wanted to sell up. Everyone advised us that we were throwing our money down the drain and to buy, yet only had funds of about £10,000 available at the time so had limited options and ended up on a scheme called "Easybuy", this is where we brought 85% of the apartment and crest nicholson give us interest free the other 15% via a second charge to be paid back in 10 years.
Situation today - we now have a 6 month old baby and my wife has given up work, thus the amount I can save per month has dropped, however are desperate to move due to real lack of space and estate being overtaken by undesirables.
Problem is getting a new mortgage moving forward, my bank has advised they have no issues giving me up to £166,000 mortgage however when I discussed this all with them I don't think they fully took into account my situation:
Here are the facts:
I have £128,761 settlement on mortgage
I owe the house builder on their "easy buy" scheme, 15% of the sell price which will be around £20,625 based on a realistic sell price of £137,500
This makes total debt on property £149,386
That means, if we sold, we have £11,886 negative equity to put somewhere (i.e. on the next mortgage)
Available savings - £15,000
So
If we brought a house with a value of £150,000
would we add on the £11,886 making upfront cost of £161,886
90% of this amount is £145,697, with a deposit of £16,188.60 - certainly possible to achieve and based on my discussion with their mortgage advisor and these facts, I chose to place my home on the market either this week.
HOWEVER, last night I was going over the numbers again and the way i'm reading it is, that makes it 97.1% of the property value.. which i'm assuming I can't have?
So - 90% of a property value of £150,000 is £135,000
So this means then, we would need to bring the mortgage down to £135,000 by increasing deposit by another £10,697 to a total deposit of £26,885.60 - not possible and unlikely any time soon given reduced savings amount, even though I can afford the monthly payments on their £160k mortgage at £908pm (not too much different to what I pay now if you factor in the service charge/ground rent)
My current bank, mortgage lender and investment funds are all with the Halifax, when I search online on sites like money.co.uk it suggests Halifax offer higher than 90% LTV mortgages however the lady I spoke with on the phone did not mention this (even though she said i was in their highest credit bracket)
Thanks for listening and I openly welcome your feedback and advice, mortgages websites are making my head spin.
Marcus
