Stagnant housing market, and unable to move

**wtaylor** · 8th August 2011

After some advice really, at the mo I have a mortgage on a 2 bed failrly large duplex apartment and have been living here over 2 years. We love the place, its in a little quiet village on the outskirts of Liverpool with easy access to all motorways etc. The problem I have is I have had it on the market for 6 months (expanding family) without even a sniff, first time buyers have no chance of buying it as they need silly deposits for anything half decent and it not really something a family would move into. Ideally we would love to rent it and get a 2nd mortgage, but again silly deposits etc. We have seen houses we love come and go in the area we want to move to, I have dropped the price by 20k, is there anything else I can do to use this place as a down payment or deposit on a new place?? Or any other way around getting a 2nd place without a chunky deposit

**hoponbaby** · 8th August 2011

What's your equity in the current place? Is converting to a BTL mortgage to release enough for a deposit on the new house feasible?

**wtaylor** · 8th August 2011

Got around �82k left to pay, only had mortagage for 3 years. Can they take equity from current home, not sure how it all works. We put a sizable deposit down to buy this place

**flumperino** · 8th August 2011

Vendor gifted deposits seem to be making a bit of a comeback.You entice buyers in by offering to fund x amount of their deposit (rather than dropping the price of your property), so they can add that to their savings and get a better mortgage.This will cost you, but has the added benefit of reducing the chance of a buyer dropping out, as they won't get as good a deal on another property.

**lloydi** · 8th August 2011

Some new builds also offer part exchange may be worth a look

Sent from my 2.3 X10i using Tapatalk

**SiE** · 8th August 2011

Vendor gift deposit of 5% you find another 5% then get permission from your morgage provider to let your property. Fee of 100 quid for a year or 250 for more and your interest stays the same.

**hoponbaby** · 9th August 2011

Originally Posted by SiE

Vendor gift deposit of 5% you find another 5% then get permission from your morgage provider to let your property. Fee of 100 quid for a year or 250 for more and your interest stays the same.

Depends on the lender, not all will give permission to let.

**SiE** · 9th August 2011

most will if you tell them you have no choice to either rent or default. Some say you need 30% equity but they would rather you rent than default. They dont need to know your buying another house with a different lender.

**hoponbaby** · 10th August 2011

First direct wouldn't for me, ltv on it was only around 35% but it was a blanket no we don't do btl and we wont give you permission to let the house while it's on a owner occupied mortgage

**wtaylor** · 10th August 2011

I am with FD and in same boat, shame they are such a good bank or I would have jumped ship a while back

**ratty** · 10th August 2011

I do hope to do the same next year but the value of my house has dropped by around 20K since i purchased it. If you were to make your current mortage into a BTL you would need around 20 - 30% equity in your 2nd house + as its been said already some mortage providers are not happy with changing the product into BTL.

As it is im staying put until i can overpay my current deal to make a BTL worthwhile on my current house (rental income vs mortage).

All the best

**lukese** · 10th August 2011

Originally Posted by SiE

most will if you tell them you have no choice to either rent or default. Some say you need 30% equity but they would rather you rent than default. They dont need to know your buying another house with a different lender.

Santander told me to go bankrupt if thats what i had to do when i told them i couldn't afford mortgage payments and had a tenant lined up.

i rented the place out anyway.

**Geezah** · 4th September 2011

Best thing you can do in that situation is to rent out your apartment for a year or so and wait for the market to return to a point where you wont lose out, and rent something bigger for yourself & family until you are in a position to sell and buy.

My house ( 4 bedroom mid terrace - huge house) was on the market for 18 months and only sold in april this year and I only reduced by 9k of my original asking price.

The house I bought 2 years ago (my current home) was a reposession that I got for an absolute bargain price, which has heavily offset my loss on the other.
If I knew it would have took so long to sell, I would have moved in tennants and would probarbly still have it now as a rental until the market picks back up.

In fairness, i'm seeing more houses selling this year than in the previous 2.

**hxbro** · 5th September 2011

You don't need to change to a buy to let mortgage if your mortgage lender will see the move as a necessary thing to do.

We got a consent to lease on our property as we needed to move due to work relocation but couldn't sell, just rang them up and explained the situation.

Mortgage terms haven't changed, we keep the consent to lease till the end of the fixed term on our mortgage.

**lukese** · 5th September 2011

Originally Posted by hxbro

You don't need to change to a buy to let mortgage if your mortgage lender will see the move as a necessary thing to do.

We got a consent to lease on our property as we needed to move due to work relocation but couldn't sell, just rang them up and explained the situation.

Mortgage terms haven't changed, we keep the consent to lease till the end of the fixed term on our mortgage.

Really depends on provider mate, as i said above, Santander / A&L was quite happy for me to go bankrupt, didnt give a flying fuck. just kept saying oh well basically. when i spoke to my mate who's a mortgage adviser he said it was typical of them and there worst of a bad bunch