UK Landlord Forum / Life

Figures obtained by the BBC reveal that more than 23,200 people who took out 100% mortgages in the year to 31 March could face negative equity.

Falling house prices mean the amount borrowed could be greater than the value of their properties.

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I live in negative equity as two years ago I managed to get myself a mortgage with the now infamous Northern Rock. In fairness the negative equity product they provided me with allowed me to get my foot onto the property ladder.

My payments were high as a result of my borrowings but manageable. I had secured a two-year fixed rate (at 5.6%) which unfortunately expired this April.

As a result my monthly payments have gone soaring up by more than £200 per month which equates to well over half my salary as their variable rate is a whopping 7.9%. Although I am in no rush to move I would like to secure a better rate and have tried fruitlessly.

There are no lenders prepared to offer me a re-mortgage on the grounds that I am in negative equity and Northern Rock themselves are also unable to help me.

So from now until house prices rise again and I gain some valuable equity I will be living on baked beans but at least I can sleep in my cold and empty home in the knowledge that I have secured a place on the property ladder - or should that read poverty ladder?

More stories here, it's interesting to read other peoples position...

I'm not in negative equaity as such but when my fixed rate ends next month (July) on one of my buy-to-lets i'll be over £300 short every month on that house alone.

Quote from: greybob on June 11, 2008, 10:55:01 AM
I'm not in negative equaity as such but when my fixed rate ends next month (July) on one of my buy-to-lets i'll be over £300 short every month on that house alone.

I have until December, hopefully better deals will be available by then.
Have you considered remortgaging?

A lot of people are in your position right now, and that's why repossession rates are rocketing!

I don't want to remortgage as i already did, last year to pull funds out for another property.

You remortgaged on the property that's about to go onto the standard variable rate? That means you got a fixed rate for 1 year?