Repossession - Handing Back The Keys

shellismith

We are currently with Kensington Mortgage company for £109,000 (this is with 5 motnhs arrears). The original mortgage was for £103,844 and is interest only, when we took the mortgage out the int rate was 6% but we are now paying 11.20% at a cost of £1004. We have had a financial advisor contact them and they refuse to put us on a new rate as they only do new business. It doesn't help that we have a secured loan for £23,000 and therefore have no equity in the property this loan is costing £308.61 a month. The arrears only come about when my husband lost his job. We are both now working in decent jobs but the mortgage alone is my wage gone. We have been struggling to for the last few months and have finally had enough . We want to hand back the keys and sell the house. We understand there is more likely to be a shortfall especially on the secured loan. When it all goes through will they put us on a plan to pay back the shortfall and can I buy a new home if this is in place (we would like to rebuy in two years)?

We did put the house on the market for £139,000 and have recently dropped it by £10,000 to try and sell!!!! Also we have managed to secure a rented property thanks to family and are willing to keep paying the secured loan.

Any help and advice very much appreciated

Shelli

~Beanie~

I'm not sure you will get another mortgage very easily in the next few years if you have a repossession against your name and you are still paying off a large loan.