Anyone had any dealings with Rooftop Mortgages?

flip-flop_3

2 1/2 years ago I remortgaged a BTL with Rooftop Mortgages, at a reasonable fixed rate, with the intention of moving on to a new fixed rate at the end of the 2-year period.

When that period came to an end, however, there were no suitable remortgage products available - at least not without having to put a very large lump sum back in, which I don't have.

I believe Rooftop have ceased trading so all their products are fixed and non-negotiable. My repayments went up to LIBOR + 2.7%, so I'm paying 8.91%. I'm losing £600/month net on this BTL. I'm not a sub-prime borrower and I've never missed a payment on anything in my life. But I'm really struggling with this.

There's no discussion to be had with Rooftop, they're just not willing to budge. I'm willing to hold this BTL long-term, if only I can get the payments down to a reasonable sustainable level.

But Rooftop would rather see me go under, then have to repossess a property that's now in negative equity, than put me on a reasonable interest rate that's still profitable for them. So much for codes of conduct.

Any suggestions anyone?

minimike2

Have you looked to see if there is anything you can remortgage to now?

flip-flop_3

Yes, and there's nothing without me needing to put a large lump sum back in. I remortgaged to 90% of a high value 2 1/2 years ago - a value at which comparable properties were selling at that time. Now valuations will be at least 20% less than that, with LTV at 75% max - meaning I'd need about an extra £50k on top of the new mortgage to pay off the Rooftop one. I don't have that kind of money...

minimike2

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If you are in negative equity there isnt much you can do really.

Rooftop will not negotiate

I assume its already interest only?

flip-flop_3

Hi, yes it's always been interest-only. Bought at 135, comparables sold for 160+, but several on market now and a couple of repossessions being advertised at offers over 110. So in the short term the value is very depressed.

I'm quite happy to keep this long-term, it was bought as a pension alternative and instead of paying cash into a pension pot I'm able to pay some cash into subsidising this for long term gain. I see LIBOR has dropped substantially recently so my next 3-month rate could be significantly lower. But I'd like some certainty so I can budget accordingly.

Do you have any background over what will happen with Rooftop's book of business? Surely it will have to be sold on at some point to someone who's able to negotiate?

forerunner_uk

This is an unfortunate pickle.
It is not in rooftops best interest to offer you a lower rate of interest. Even if they repossess you and don't get enough from the sale of the property to pay off the loan they have the right to sue you for the rest.
Can you remortgage your own house to borrow the extra needed to pay off the surplus so that you are no longer in negative equity? The increase in monthly payment on your existing mortgage is likely to be less than £600 a month you are having to fork out now.

You can then sell your buy to let and wash your hands of the whole affair. Property prices are only decreasing so it is difficult to see any return in the short / medium term on this.

I think rooftop still exist as a company but are not offering any new loans. They do not have to sell their book onto anybody unless they go bust.