Wednesday, October 5, 2011
Won’t somebody please think of the children
Gemma Watkins is now snared by negative equity. The 27-year-old nurse bought her home in Gloucestershire for Â£92,500 at the top of the market in 2007. She borrowed Â£100,500 from Northern Rock on one of its now notorious Together mortgages. This loan allowed you to borrow up to 125â€‰per cent of the value of the house. Miss Watkins used some cash to pay off a Â£12,500 personal loan and the rest to buy her flat. Her fixed rate comes to an end in May and she is struggling to find another lender. Miss Watkins believes this is because the value of her home has fallen by more than Â£7,000, and due to the structure of the mortgage, which combines a personal and home loan.