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Buy to Let / Fundraising for Samaritans

Hi

I'm a newbie thinking about going BR. Am a (nice) mortgage broker caught up in the credit crunch...

After getting totally screwed by an ex-partner and in a business deal, I now have £80k in unsecured debts. I was managing it up til now, but now my income has dropped to about £500 a month, I don't really see that I have many other choices.

Couple of things - firstly, I have a property that I rent out by the room to local professionals - really cheap rent and it's nice. When the credit crunch pulled the rug out from under me, I moved out of my house and into one of the rooms in the rental place. I have rented the house I was living in to a friend.

Question. House I did live in is no doubt in negative equity as I only bought it in April. I reckon it's worth £110,000 and I've got a mortgage on it of £125,000. Rental is £100 a month less than the mortgage.

House I'm now living in (and renting out other rooms) is probably worth £150,000 and I have a mortgage on it of about £166,000. Rent I get from other rooms is probably £300 a month more than the mortgage.

I really don't want to lose either property - I can afford to keep up the mortgagae payments each month, but the unsecured stuff is impossible. Would the OR take away either property? And if I buy this Beneficial Interest thing, does that safeguard them securitizing the bankrupcy on the properties?

Not worried about my car - I drive a 1989 Trabant!

I had a client in a few weeks ago, and he was being chased by the OR roughly 10 years after he had been discharged. Can they do that?

One last thing - I'm also a fundraiser for Samaritans. Does anyone know if going BR would prohibit me from doing that?

Sorry for so many questions!
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Comments

  • deedee_3
    deedee_3 Posts: 891 Forumite
    You really do need to gget some serious professional advice from one of the debt charities, numbers and links in the Bankruptcy Help sticky at the top of the board (a must read thread.) But I think that you have to resign yourself to losing one of the properties.
    Namaste DeeDee x
  • fiveyearplan
    fiveyearplan Posts: 10,143 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Hi and welcome.

    You should definitely be able to keep the property you consider to be your home. I'm not really sure about the 2nd property.

    Fundraising wouldn't be a problem.

    You would have to look for alternative employment as BR's cannot advise people on mortgages.

    Phone one of the debt charities for more advise and come back here if you think of anything else.

    :j :j


  • deedee_3
    deedee_3 Posts: 891 Forumite
    5YP if you read the 'can you be a mortgage advisor' thread, it seems you can.
    Namaste DeeDee x
  • fiveyearplan
    fiveyearplan Posts: 10,143 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Thanks Deedee, I just read it. I'd be interested to find out more (not that I'm planning on being a mortgage advisor but I like to keep up!)

    :j :j


  • deedee_3
    deedee_3 Posts: 891 Forumite
    It's amazing how things change isn't it. It definatly wasn't accepted that long ago. But at least it is a change in the right direction.
    Namaste DeeDee x
  • JCS1
    JCS1 Posts: 5,331 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Hi,

    You can't keep two properties, the OR will consider your "family home" and they have three years to deal with this, but second properties vest in the OR straight away.

    HTH
  • JCS1 wrote: »
    Hi,

    You can't keep two properties, the OR will consider your "family home" and they have three years to deal with this, but second properties vest in the OR straight away.

    HTH

    Even if the second mortgage is being paid and the property is in negative equity anyway?
  • JCS1
    JCS1 Posts: 5,331 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Even if second mortgage is paid and the property is in negative equity.

    Sorry, not what you want to hear.
  • what colour is the trabant?
    Now we all know how it felt to play in the band on the Titanic...
  • Couple of things - firstly, I have a property that I rent out by the room to local professionals - really cheap rent and it's nice. When the credit crunch pulled the rug out from under me, I moved out of my house and into one of the rooms in the rental place. I have rented the house I was living in to a friend.

    Question. House I did live in is no doubt in negative equity as I only bought it in April. I reckon it's worth £110,000 and I've got a mortgage on it of £125,000.
    Rental is £100 a month less than the mortgage.

    House I'm now living in (and renting out other rooms) is probably worth £150,000 and I have a mortgage on it of about £166,000.

    Rent I get from other rooms is probably £300 a month more than the mortgage.

    im glad im not that clever, cos to me all i can see is "cheap" and "less than"...
    Now we all know how it felt to play in the band on the Titanic...
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