House Repo Query

Darth_Marty

Is it not plausible to rent out the english property to cover the mortgage? Based on a 100k mortgage the rental figures should work out ok.

b0rker

Darth_Marty wrote: »

Is it not plausible to rent out the english property to cover the mortgage? Based on a 100k mortgage the rental figures should work out ok.

Okay yes it is possiblt to sit on the SVR also but my concern is when the interest rates start to shoot up. It will just be delaying the inevitable?

The hosue is in Scotland by the way.

£700 a month at 6.99%

Would go down to around £550 a month on the NR SVR?

Could realise maybe £400 a month tops in the rental market.

Thanks for the reply.

hethmar

Whatever happens, I dont think the lender is going to wipe off £30k without trying to recover it. After all, most of the lenders are very aware of their liability to the British taxpayer.

Darth_Marty

Seems like the best option would be to sell the scottish house, and if possible remortgage the polish one to cover any shortfall. Hopefully the increased payments on the polish property will be manageable for you. If not then it seems like you are in a bit of a dodgy situation. Good luck.

neas

agree with darth marty. I think the days of hoping onto a ferry to a foreign country to escape debt has dissapeared. Unleess you totall changed identity lol.

silvercar

Hand the keys back and you will be chased for shortfall. Your credit rating in this country will be stuffed and you will find it difficult to get a decent rate mortgage for a few years.

Whether the lender chases you overseas is debateable. It could depend on whether they sell the debt on, or not. It is a risk. Whether they can secure the debt onto your polish property depends on whether the polish courts operate in the way that UK courts do and whether they would automatically accept a foreign debt.

Remember the lender has 12 years in which to track you dpwn, that is a long time to be looking over your shoulder.

LydiaJ

Darth Marty's idea is good. If you can get £30k more of mortgage on the Polish house, then you'll be able to fulfil your obligations in Scotland without having to sell the Polish house altogether. Do you think the Scottish house would sell if you put it on the market? Even if you drop the price quite a lot in order to get a sale, you would probably get more by selling it yourself than by letting it get repossessed and sold by the lender.

RainMaker_2

b0rker wrote: »

My question is that if I hand the keys of my UK house back to the mortgage company will they then be able to force me to sell my house in Poland to recover the £30,000 shortfall?

They would certainly be able, though how exactly the legalities are engineered would depend on the two countries concerned. Think about it - If debt couldn't be recovered across international borders then nobody would do any foregin business.

My guess is that if they suspected you had assets in Poland they would persue it. Either directly themselves, or indirectly by selling the debt to a third party.

b0rker

RainMaker wrote: »

My guess is that if they suspected you had assets in Poland they would persue it. Either directly themselves, or indirectly by selling the debt to a third party.

I agree of course that the UK lender would be able to persue it. I am more than happy to service the debt as I say. My issue is whether as part of the persuit I could be force to sell the Polish property.

Remortgage on the Polish property is not possible as the mortgage with the Swiss bank does not allow for releasing equity until the full life of the mortgage has been lived. I could maybe find the £5k and release myself from that although there are large redemption fees so maybe not.

I am not attempting to rip off a UK bank here. Far from it. I am not stupid enough to think I can walk away from this debt. I will of course try and sell the house before it would be reposessed. Sorry I should not have suggested that I was going to let it become reposessed so easily.

I am just looking for some advice/information on my situation as buying the house at the top of the market was a large error. I am attempting not to make any large errors whilst now dealing with the outcome of the initial large error.

Thanks for everyones input so far.