Splitting Up and financial mess with mortgage&debts

butterfly2203

Hi, a bit about my situation. I left my OH a month ago and we have a property together which neither of us can afford to own on our own. Our mortgage payments are high as we did a self cert mortgage last April and could just about manage it. (silly to take out in first place I know!)

So, we bought house April 2008 for £191,000. Mortgage is with Bristol&West, £173,000 fixed for 5 years and a huge redemption penalty of £8500 which stays the same amount throughout the 5 years!!!

At the moment, house is on market at £179,950 Very optimistic I know. Been on for 2 weeks and no interest. We know that for a quick sale it would have to be on for around £170,000

Ex and myself are very up and down at the mo and are both worried about the financial situation we are going to be in. We also have 2 loans, one for £6000 and other for £9500

We are looking at renting the property out, but rent would only be £700, where mortgage payment is £970 so we would have to both pay some to top it up. We are waiting for paperwork from the mortgage company to request permission to rent, but there is no guarantee that we will be allowed to rent it out.

Spoke to ex today and he is saying about going down the repossession route!

I am just utterly confused and stressed with everything. Neither of us want to be in loads of debt, we both want to get on with our lifes.

Is repossession the right thing to do??

theartfullodger

If it is repossessed it will probably then be sold by the mortgage company. Whatever they sell it for, less expenses, will be taken off your outstanding loan and you will be left (almost certainly) still owing money.

So, chances are with repo properties not being highly regarded in EA's windows you could end up even more in debt than you currently think you are.

May I suggest you get some serious advice - either CaB or Shelter. Advice both on what to do re. the house & the loans, and probably (? not sure on this one?) decide if you want help as a "couple" or separately...

If mortgage co. agree to you letting the house chances are the interest rate MAY go up so that might make the numbers look even worse. Sorry, just trying to be realistic.

www.citizensadvice.org.uk

http://england.shelter.org.uk/

Sorry to hear your story, not fun. Don't know what to advise...

Artful

SouthCoast

we both want to get on with our lifes.

Visit the Bankruptcy Board to explore one of the options.

butterfly2203

Thanks. Will have a look at links and other board.