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smithrog15...

I'm in negative equity but I want to sell.

My house is worth around £120k, my 1st mortgage has around £99k owing & 2nd mortgage around £30k. Can I sell & port the remainder to a new property?

Asked on Mar 11 2010, Selling in Liverpool | Report content

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    Mark Heneg...

    The short answer is probably not; some lenders are willing to negotiate transferring a small amount of secured loans to unsecured debt if the homeowner is facing difficulties in paying the mortgage and are also in negative equity and just selling. Should you have to move, the only real option would be to rent your current property out, and rent a new home. Back in the early nineties a few lenders started to allow homeowners to port negative equity to stimulate the market but in the current climate lending sources are limiting their risks and want the highest LTV they can get.

    Answered on Mar 11 2010, Report content
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  • Photo of Iain White

    Iain White...

    No you can't port over negative equity I am afraid. You will need to have enough put aside to pay the negative equity off and have a deposit big enough to get a mortgage on the next purchase. It is a bit of a trap I am afraid the best advice would be to rent out your current property and then rent a new one to live in. Prices will recover over time putting you back in positive equity. wish I could give more positive advice.

    Answered on Mar 12 2010, Report content
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