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house help please

Many thanks to all the very useful posts I`ve read previously on the subject. I`m not yet BR but I`m sure I`ll have to be.
I live in House `A`. House A is worth £80k with a £60k mortgage so £20k equity. I`m presuming that the OR will want to sell that so I have the option of moving in to house `B`.
House B was bought near peak so the mortgage is 130k but the value is 110k. I presume that at the end of 3 years the mortgage titile will revert to me? Or do I have to buy the beneficial interest first?
My question relates to mortgage overpayment on B before babkrupcy. Will the mortgagee on house B accept a MO? How will the OR view this, and what would be the repurcussions?
All advice received with many thanks.

Comments

  • So_Sad_Angel
    So_Sad_Angel Posts: 7,363 Forumite
    Hi Snowmouse & welcome.

    Are both houses in sole name or joint? Obviously this makes a different on the available equity figure. If sole name then I would think that if there is a retievable figure on the first property (A) then the OR will take it.

    On the property that has no equity (B) then the OR will not have an interest. The OR will investigate any large payments but I would think it unlikely ( if not virtually impossible) that the mortgage company (the mortgagee) will agree to refund any overpayment. The Mortgage Co will not want to potentially increase their exposure position to a debt secured in a negative equity senario...esp when the mortgagor (the borrower) is bankrupt.

    I would call one of the debt charities for further advice.

    Hope that makes sense.

    Angiexx
  • So_Sad_Angel
    So_Sad_Angel Posts: 7,363 Forumite
    Just to add . It is not recommended that any overpayment is made on a mortgage when you know that you are in an insolvent position. It will likely open the individual up to BR restrictions BRO/BRU & the OR will find out from statements etc.
  • snowmouse
    snowmouse Posts: 29 Forumite
    Just to add . It is not recommended that any overpayment is made on a mortgage when you know that you are in an insolvent position. It will likely open the individual up to BR restrictions BRO/BRU & the OR will find out from statements etc.

    Forgive my ignorance, what form might those restrictions take?
  • philnicandamy
    philnicandamy Posts: 15,685 Forumite
    10,000 Posts Combo Breaker
    snowmouse wrote: »
    Forgive my ignorance, what form might those restrictions take?


    bit of a read here....


    http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/bro.pdf
    We all die. The goal isn't to live forever, the goal is to create something that will
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