Selling up with small amount of negative equity

[deltrotter]

Hi All,

Very quick question. I own and live in a property in approx 40k negative equity. I would like to cut my losses and sell up. Do you think it would be possible to do any sort of deal with the bank? My mortgage has been fully paid up to date and I have been paying it in full for the last 10+ years.

Could it be the case that I could pay back the bank the 40k over the remaining term of the mortgage? Does anybody have any advice to offer here? The option of a negative equity mortgage with the lender in question is just not an option (I have done all the research here) and I would not want to take another mortgage with them.

Thank you.

 

[Sarenco]

Do you think it would be possible to do any sort of deal with the bank?

What would the bank get out of the deal?

 

[deltrotter]

What would the bank get out of the deal?

A few hundred thousand paid back much earlier - not that they would want that! I'm guessing they will only do a deal with people not repaying their mortgages?

 

[Sarenco]

That's my point really; the bank don't get paid any interest on money that you repay ahead of schedule.

You have a statutory right to redeem a variable rate mortgage early without penalty but you shouldn't expect the bank to thank you for doing so - there's absolutely nothing in it for them.

 

[Brendan Burgess]

Could it be the case that I could pay back the bank the 40k over the remaining term of the mortgage?

They usually require people to pay off the loan over 5 to 10 years.

If you have a cheap tracker, you might get a discount from a vulture fund. But if you are with a mainstream bank, you won't get a discount for early repayment.

Brendan