options with negative equity

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lanie

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We bought last May for £179,000 and now houses in the same development are up for sale at between £160,000 - 165,000. However these are not selling also (as seemingly with all property in Northern Ireland at the minute).
We are not endeavoured with the area (not what we thought it would be like) and I hate living in a noisy semi! We would love to put the house on the market after we get married next July 09 but we will be in negative equity (took out 100% mortgage. (I know!) but over the time we were looking everyone harped on about how great they were)
What would be our options then be with a bank. Our mortgage is with Ulster Bank/ Bank of Scotland and will be up for renewal next June 09!
We would hope to put some of our wedding cash gifts against the neg equity but say we were left with £5/10 grand, would a bank let this amount be added onto a new mortgage amount? eg. Id we bought a new house for £180,000 add the outstanding amt on = £185/190,000. Or am I just dreaming!?
 
If we sell the house and have a debt owing of say 10 grand after paying off most of it. Do they let you pay it off like continuing your mortgage payments until it is cleared? I know this may differ from North to South but anyone any knowledge or ideas on this would be greatly appreciated.
 
Could I just ask one question - Why did you buy the house if you dont like noisy semis??!
 
lanie said:
If we sell the house and have a debt owing of say 10 grand after paying off most of it. Do they let you pay it off like continuing your mortgage payments until it is cleared? I know this may differ from North to South but anyone any knowledge or ideas on this would be greatly appreciated.
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We lived in the UK in the early 90s and got caught in the last house crash. We wanted to sell up but because of negative equity we had to get the agreement of the mortgage company before we could sell, we also had to pay back the difference between the sale price and the mortgage before they would release the title deeds to the buyers. This ended up being about 14,000 sterling.

Intitally the mortgage company wanted this as a lump sum but after negotiating with them they agreed to 6 post dated cheques which meant living on bread and water for the six months but it enabled us to clear the debt and keep a clean credit record.
 
Where did you live when you were paying back this debt? Did you rent somewhere else?
 
legal lady, I really didn't know it would be as noisy! I grew up in a detached house in the rural countryside so am totally new to semis and the associated noises.
 
thats not going to help the fact that he is living in Northern Ireland... ;)

Sorry couldnt resist.
 
What do you mean you are not endeavoured with the area? You will have to pay the bank what you owe them before they release the deeds. What do you mean your mortgage will be up for renewal in june 09?
 
My apologies! I didn't mean endeavoured. I don't know where that came out of.:)
If they don't let you transfer the negative equity onto another property I guess we'll have to rent somewhere else while we try and sell it and chip away at the mortgage.
 
You have to find a balance between how quickly you want rid of it and how much negative equity you can handle.

Sell it for the going rate, then rent and pay off the remainder. If you rent while trying to sell wont this add further pressure to your finances, that could be used to pay off the negative amount?
 
Slinky, I have been told that the bank/lender is unlikely to let you sell the house and pay off the remainder over a period of time say (2 yrs). We would be very open to doing this and renting at the same time.
 
Lanie, I would think your local credit union would be happy to provide the money to make up the difference and let you pay it off over time.
 
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