Help with mortgage shortfall

2

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  • Jake25uk
    Jake25uk Posts: 12 Forumite
    So could I hand back the keys to santander? What would be the outcome of that? As I have said before, I can handel a monthly repayment but cannot go on like this. Also, can the keys be handed back with tenants present?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    You need to have a frank honest discussion with Santander. Banks are pragmatic. They'll accept a repayment plan for the deficit. Though you may need to give your residential property as security.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    Yes you could hand the keys back but Santander could still come after you and your home. Are any of these people you discussed "bad" credit mortgages with independent mortgage brokers?

    Do Santander know you are letting the property out? Who is living in it just now, new tenants or the bad tenants?
  • Jake25uk
    Jake25uk Posts: 12 Forumite
    Bad tenants, paying nothing at the moment but have assured us they are waiting for housing benafit after one of them loosing his job, santander know i am letting it out which is why its such a high rate mortgage. The people i discussed "bad credit mortgages" with are an estate agent who was doing us a favor with his advice (knew we were not using him for a sale) and also a guy from community law, both said to avoid these companies, although the advice he gave me is not what I am being told here i.e. he told me santander cannot block the sale.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Jake25uk wrote: »
    although the advice he gave me is not what I am being told here i.e. he told me santander cannot block the sale.

    Not someone to use again in the future then.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    The whole point of the mortgage lender having a charge on the property is to give them first call on any funds available from the sale of the property. If the sale won't generate enough funds to clear the loan then yes the lender can prevent the sale.

    Go and speak to an independent mortgage broker to explore your options rather than relying on the opinion of some spiv estate agent.

    Serve notice to the tenants to start the eviction process. If their HB claim is successful and will clear the arrears then great, if not you'll at least have got the ball rolling to get them out.
  • Bonfire_Bride
    Bonfire_Bride Posts: 710 Forumite
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    Is your credit file a true disaster? We visited a EA mortgage advisor 2 years ago and they just said "computer says no"...our files weren't hideous but could have been better.

    After applying with the help of a specialist mortgage broker, we are now going through a mortgage application with a high street lender.

    The general mortgage advisors don't know the "whole of market" lenders so it could potentially be an option to release the equity on your residential home to cover the shortfall on the flat.

    However, in your current financial situation, would this still be a viable way of getting you out of difficulty?
  • Jake25uk
    Jake25uk Posts: 12 Forumite
    Thank you. Do you think it is worth speaking to the mortgage provider for the house about getting at the equity?
    The other problem I have is I dont trust the tenant tobpay the hb even if it is sucessful and do not have the spare money to pay the court cost and bayliffs. Also the tenants have no proper tenantcy agreement i writing as they were only supposed to be staying for 2 months originally (this was over a year ago) I know this is a mess.
  • Jake25uk
    Jake25uk Posts: 12 Forumite
    Bonfire bride... i know I have ccjs and other debts which were built up when we had 2 properties and no tenant and whilst having bad tenants and have been told by my bank that my rating is not good.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    The tenants pay rent in exchange for exclusive occupation of the property ergo there is a valid tenancy agreement whether it's in writing or not.

    Sure going to court costs money but surely that's cheaper than the current situation. If it turns out you really can't sell then you may as well find some paying tenants to soften the blow.
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