Getting desperate now...

Prudent

Is your mortgage a repayment one? Could you switch to interest only for a while?

sheslookinhot

papermoney wrote: »

Sorry that was my fault for not wording it properly.
We really need to live in OHs house as it is bigger. My property, the one for sale is a lot smaller and we couldn't possibly fit in it. He did contact his mortgage company (back in July) and they wouldn't give their permission to rent his house out either. We did consider it at one point. So decided that if we couldn't rent either property out and had to pay for both mortgages we would live in the bigger house.

OK, in that case I would rent your house if at all possible. If the BS have said you cannot rent it, then rent it without telling them OR as a previous poster said, tell them you ARE renting it.

papermoney

sheslookinhot wrote: »

OK, in that case I would rent your house if at all possible. If the BS have said you cannot rent it, then rent it without telling them OR as a previous poster said, tell them you ARE renting it.

I must admit renting it would be 'easier' in term of we'd get some money back. Probably get £500 a month so only £400 for us to find a month which is do able.

I am on repayment, I did ask about changing to interest only but they made it sound like i'd have to have a credit check and go through the whole process again.

I had to do the same when I asked if they would consider porting the mortgage to another property - they turned me down.

sheslookinhot

I would speak to them again about switching to a I/O mortgage. Speak to head office.

If that fails then rent it.

papermoney

sheslookinhot wrote: »

I would speak to them again about switching to a I/O mortgage. Speak to head office.

If that fails then rent it.

thanks - will call again today

GDB2222

neverdespairgirl wrote: »

How much equity do you have in OH's house?

This is the wrong question, as I think Papermoney has no equity in OH's property. If I understand the situation correctly, Paper has minus £20k net assets and an income of £500 a month. If she goes bankrupt, she can live with OH in his house, without any change at all in her standard of living. She will be discharged in a year. The trustee in bankruptcy may ask for part of her pay during that year, but probably won't bother. At the end of the year, she's ditched the negative equity on the house and is free as a bird.

Downsides: Credit-rating is busted for the next 5 years (which it probably is anyway), and there's a bit of a palaver going bankrupt. Some people find it humiliating; others are just pleased to be free of the debts they had.

Somewhere or other, this situation has got mis-translated into a sort of doom scenario. Doesn't look that way to me, but go check on the bankruptcy board.

papermoney

GDB2222 wrote: »

This is the wrong question, as I think Papermoney has no equity in OH's property. If I understand the situation correctly, Paper has minus £20k net assets and an income of £500 a month. If she goes bankrupt, she can live with OH in his house, without any change at all in her standard of living. She will be discharged in a year. The trustee in bankruptcy may ask for part of her pay during that year, but probably won't bother. At the end of the year, she's ditched the negative equity on the house and is free as a bird.

Downsides: Credit-rating is busted for the next 5 years (which it probably is anyway), and there's a bit of a palaver going bankrupt. Some people find it humiliating; others are just pleased to be free of the debts they had.

Somewhere or other, this situation has got mis-translated into a sort of doom scenario. Doesn't look that way to me, but go check on the bankruptcy board.

You are right, I personally do not have any equilty in OH house as I don't own it but the money is there to be used.

It is only my credit rating which i'm concerned about. I have very good credit rating at the moment - well according to experian and creditexpert.

I have never missed a payment on anything at all.

I have one credit card with £500 on it and 2 loans (but in my parents name) - so doesnt show up on my credit rating.

All loans in my name show as settled on the credit reports.

I would hate the fact that in 5 years time I would find it hard to get a mortgage (at a decent %) and credit (if I needed it).

As luck would have it I have just been speaking to a family friend who may be interested in renting the house - if they can get jobs here. So another option - possibly.