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Negative Equity, IVA and fixed rate mortgage ending
snowy789_2
Posts: 11 Forumite
Hi
I need some help and advise if possible. Im in panic mode!
My 2 year fixed rate mortgage comes to an end in June, and im in negative equity.
I bought my flat at £70k (mortgage about £68.5k), and now its worth around £55k. I have called GMAC to see if theres anything they can do once the fixed term has ended and they have informed me that they are not doing any more fixed rate mortgages.
Currently im on 6.99% and with the variable the way it is, i would be paying 6.34%. Although its gone down, i worry that it will soon fly back up, and i wont be able to afford it.
You see not only am i in negative equity, i also have an IVA that was sorted out in Oct 07, which i got another 3 years and 8 months left. Im comfortable in paying everything the way it is, but as soon as the interest rate goes back up, im not going to be able to afford it all.
No other mortgage company will touch me as im in negative equity!
One of my friends has suggested that i just bankrupt - but to me thats a complete last resort!
Can anyone help?
I need some help and advise if possible. Im in panic mode!
My 2 year fixed rate mortgage comes to an end in June, and im in negative equity.
I bought my flat at £70k (mortgage about £68.5k), and now its worth around £55k. I have called GMAC to see if theres anything they can do once the fixed term has ended and they have informed me that they are not doing any more fixed rate mortgages.
Currently im on 6.99% and with the variable the way it is, i would be paying 6.34%. Although its gone down, i worry that it will soon fly back up, and i wont be able to afford it.
You see not only am i in negative equity, i also have an IVA that was sorted out in Oct 07, which i got another 3 years and 8 months left. Im comfortable in paying everything the way it is, but as soon as the interest rate goes back up, im not going to be able to afford it all.
No other mortgage company will touch me as im in negative equity!
One of my friends has suggested that i just bankrupt - but to me thats a complete last resort!
Can anyone help?
0
Comments
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Mate, we discuss stuff but don't really deal with specifics like yours.
You might have better and more knowledgeable response from the Debt forum...
http://forums.moneysavingexpert.com/forumdisplay.html?f=760 -
Your friend is right it's probably the best to go BR as bad as it may seem. It will get you out of negative equity. It'll be the end of the IVA and you get to start again rather than being at least £13,500 down to begin with.
It's a tough choice but if you are comfortable paying for something that isn't worth it then go ahead and continue.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
If you really want to avoid BR, why not try and sell half of the flat, that way keeping a clean record (if you have 2 rooms that is).
Or why not get a lodger?
If things are getting tough, its probably best to talk to your lender rather than letting this all snowball.
Keep smiling dude.0
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