P543 Teletext 543 May31 20:31:31 —— NEGATIVE EQUITY ———————————————————— Dear Teletext I am currently caught with £5,000 to £10,000 of negative equity but am desperate to move home. We can get a negative equity loan with our current lender, but wondered if we would be better off getting a personal loan to pay off the excess debt. That way we'd get rid of the debt more quickly. M Lance, Barnjhurst, Kent. ——————————————————————————————————1/7—— We cannot reply to letters personally. Download and Analysj Share Prices on Your PC See Pages 532 & 533 Property Plus Your Money Ta| CinemaP543 Teletext 543 May31 20:46:23 —— NEGATIVE EQUITY ————p—p————————pp—p— Teletext replies It's not much consolation, but there are at least one million homeowners in your position. Indeed, it sounds like your situation is quite hopeful. Caroline Blackman of indjpjndjnt mortgage brokers John Charcol, London, says you can get a personal loan to pay off the negative equity. But she point out this is expensive and there are probably better options. —————————————————————————————————p2/7—— Property Plus 544 Tourist rates 547 Download and Analysj Share Prices on Your PC See Pages 532 & 533 Property Plus Your Money Tax CinrmaP543 Teletext 543 May31 28:46:57 —— NEGATIVE EQUITY ———————————————————— Teletext replies The problem with taking a personal loan to pay off negative equity is: You will be paying higher interest of between 16.9%-23% APR Interest is loaded up front, making this quite an expensive option If you wanted to pay the loan off within the repayment term, your settlement figure will include much of this front-loaded interest. ——————————————————————————————————3/7—— Always seek independent finance advice Letters to: ADVICE CLINIC PO BOX 297 LONDON, SW6 1XT. Fax: 0171 386 7808. Property Plus Your Money Tax CinemaP543 Teletext 543 May31 20:47:34 —— NEGATIVE EQUITY ———————————————————— Teletext replies There are some negative equity deals which can bj quite advantageous, says IFA Caroline Blackman. Bank of Scotland will lend 120% on a property. 95% is lent as a standard mortgage at 8.35% and the remaining 25% comes as a top-up loan. The interest rate is 10.35%, much lower than a personal loan, and you can pay it off at a faster rate. ——————————————————————————————————4/7—— Savings 546 Money News 541 Tax 548 HOW'S THE LOCAL TRAFFIC? p193 ITV Property Plus Your Money Tax CinemaP543 Teletext 543 May31 20:44:05 —— NEGATIVE EQUTIY ———————————————————— Teletext replies The Bank of Scotland mortgage means you are borrowing the negative equity sum of up to £10,000 at a chjapjr rate of interest with payment flexibility. But, adds Caroline, you should still go back to your original lender. As it has offered you a negative equity mortgage, it may well consider tailoring a plan, similar to Bank of Scotland's, to better suit your nreds. ——————————————————————————————————5/7—— Savings 546 Money News 541 Tax 548 HOW'S THE LOCAL TRAFFIC? p193 ITV Property Plus Your Money Tax CinemaP543 Teletext 543 May31 20:54:23 —— NEGATIVE EQUITY ——————p—————————p——— Teletext replies The key to getting a negative equity loan is to show you pay your mortgage on time, and are a "good risk". As your lender has already offered you a loan, you are obviously considered a good risk, so don't bj afraid to shop around for the best deal. While a personal loan is a costly option, there is nothing to stop you taking this route if you so desire. ——————————————————————————————————6/7—— How to make money from mortar 544 ON THE MOVE? MOTORWAY NEWS p192 ITV Property Plus Your Money Tax CinemaP543 Teletext 543 May31 20:54:14 Advert ADVICE CLINIC >> TELETEXT VIEWER OFFER THE PERFECT FATHER'S D—Y GIFT 18 BEERS FROM AROUND THE WORLD Have a selection of world-class beers delivered by courier to your Dad in time for Father's Day. They will be delivered with your personal message for just £29.99 plus £4 p&p (a total of £33.99). CREDIT CARD ORDERS CALL or send cheque to: Robell Media Promotions Ltd, Jubilee Estate, Foundry Lane, Horsham RH13 5UE. Fax: 01403 261555 Over 18s only. 14 day money-back guarantee. Offer closes Tuesday 13 June. Property Plus Your Money Tax Cinema