Call me crazy, but is it possible to move with negative equity?

ilovebiccies

Ok...bought a house in the boom for big bucks.....so clearly in negative equity....anyhow...we have 40k savings ....we want to buy a site and build.....do I stand a chance in hell of getting a mortgage again? ...ie trying to sell the house...take what we get for it.....then....Carry the negative equity with me onto our next loan? It would mean giving up the tracker mortgage and stuff.

I don't understand much about all this stuff......just wondering if anyone can shed some light on it.....

Thanks

the_syco

I think for the mortgage to carry, the new house must be worth more than what is owed, and thus I'd doubt if the bank will allow you to sell with only a field and a few bricks as leverage.

Victor

ilovebiccies wrote: »

Ok...bought a house in the boom for big bucks.....so clearly in negative equity....anyhow...we have 40k savings ....we want to buy a site and build.....do I stand a chance in hell of getting a mortgage again? ...ie trying to sell the house...take what we get for it.....then....Carry the negative equity with me onto our next loan? It would mean giving up the tracker mortgage and stuff.

I don't understand much about all this stuff......just wondering if anyone can shed some light on it.....

Thanks

I would be grateful if you could use proper sentences.

Moderator

NIMAN

I think grammar and syntax are the least of this posters worries!

ilovebiccies

Oops, sorry victor. Will aim for sentences from now on. But, niman your right, I had a little more on my mind. I didn't realise it mattered, but from here on in, sentences only!

ilovebiccies

I was just hoping upon hope that it was somehow possible. You hear of some people taking a gamble and it paying off. Thanks for info.

valleyoftheunos

The bank won't agree to what you are proposing, it is essentially asking them to allow you have two mortgages on one property and that wouldn't make financial sense for the bank. A bank won't allow you to sell your house for less than the mortgage unless you can pay off the balance from some other source.

TwoShedsJackson

ilovebiccies wrote: »

I was just hoping upon hope that it was somehow possible. You hear of some people taking a gamble and it paying off. Thanks for info.

You can ask the bank if you can carry the negative equity with you in some sort of deal, but they will almost certainly turn you down.

You can't sell the house without their assent as they are holding the deeds, and they won't release the deeds to allow a sale go through unless you can clear the mortgage at the same time, which you can't when you're in negative equity, unless you pay it off from other funds you have.

ilovebiccies

Yeah, I was hoping that they would allow us to carry the negative equity with us on top of new mortgage. I am prob nuts even considering it.I have a tracker mortgage. i should prob just sit tight for another few year. Just chasing a dream I think.

the groutch

in most cases I'd say no chance, but your tracker mortgage could be a very powerful bargaining tool.

ilovebiccies

Yeah, that's what I thought re the tracker mortgage.