Mortgage & BR (Another question)

Sammy3008

Ok, we currently have our house on the market for less than my OH owe's on the mortgage. My OH is definately looking to go down the BR route, but we've said we'll struggle through for 12 weeks (just put it on the market with a new agent, so 12 weeks minimum) however if the house hasn't sold within 12 weeks, then my OH is then going to file for BR whilst still in this property.

If this is the case, would my OH cancel the direct debit for the Mortgage? Or would he have to continue paying it?

My OH is in negative equity anyway, but we're not wanting to stop here (hence why we're trying to sell!)

Thanks.

debt_doctor

Then I pressume you are looking to private rent ? If that is the case then stop paying all debts NOW including the mortgage and save up for a bond and deposit, move in and then go BR.

It is far easier to get a rented property before BR than after.

DD

Sammy3008

debt_doctor wrote: »

Then I pressume you are looking to private rent ? If that is the case then stop paying all debts NOW including the mortgage and save up for a bond and deposit, move in and then go BR.

It is far easier to get a rented property before BR than after.

DD

We are looking into Private rented. If we stop paying all debts now, at present we pay £651 a mth for our mortgage and Unsecured loan (got a together mortgage) obviously saving this a mth, will the OR not question my OH bank account, or should we move this money into my account?

Could our landlord not evict us, if we get a private rent and then go BR?

debt_doctor

Sammy3008 wrote: »

We are looking into Private rented. If we stop paying all debts now, at present we pay £651 a mth for our mortgage and Unsecured loan (got a together mortgage) obviously saving this a mth, will the OR not question my OH bank account, or should we move this money into my account?

Could our landlord not evict us, if we get a private rent and then go BR?

You need to sort your housing issue before BR, so the money would not be in his account when he went BR. With the NR mortgage they will try to enforce the unsecured debt via a charging order asap but that will make no difference to you as you are giving up the property anyway.

So;

!) stop paying everything except c/tax and utilities.

2) save up bond / deposit and move in.

3) save for BR fee

4) go BR


.... And before all of those, go to CAB, national debtline and make sure BR is right for you both.

ps Landlords are not bothered so long as you pay your rent and look after the place.As an assured shorthold tenant (as most are) then a LL can remove any tenant for NO REASON AT ALL if given 2 months notice, so a BR clause is meaningless.

DD

maxmycardagain

how can you sell the house for less than you owe on it, i think your lender will object

Angiepange

Originally Posted by debt doctor
Then I pressume you are looking to private rent ? If that is the case then stop paying all debts NOW including the mortgage and save up for a bond and deposit, move in and then go BR.

It is far easier to get a rented property before BR than after.

DD

Sorry to jump in here but if you have stopped paying creditors while saving up to move into rented before going BR, would you not fail the credit checks done by the letting agencies anyway? This is where we are having difficulty as dont want to pay out for credit checks we may fail if we decide to rent before going BR.

Thanks angie

Sammy3008

maxmycardagain wrote: »

how can you sell the house for less than you owe on it, i think your lender will object

I've already spoken to our lender about this. Basically once we have a sale pending on the house, my OH needs to contact the mortgage company, who will assess the situation, and it will be upto the manager, whether we can sell at the shortfall. If they allow (I imagine it will go on how much the shortfall is etc) this then we will have to pay the shortfall back monthly.

larzie30

Sorry to jump on this thread but a question has just come to me. If you are looking to private rent and one of you is BR and the other isn't. Can the property be rented in the non BR persons name and both live there or is this illegal?

L

xx

maxmycardagain

If OH is going BR any shortfall would be included, unless its a joint mortgage when you would both need to go BR, making renting difficult unless you seek out owners not using estate agents - who will credit check - or you rent pre-BR...

Sammy3008

larzie30 wrote: »

Sorry to jump on this thread but a question has just come to me. If you are looking to private rent and one of you is BR and the other isn't. Can the property be rented in the non BR persons name and both live there or is this illegal?

L

xx

Trouble is with us, its my OH who works, I don't, so I guess it would be harder to get a private rent in my name

Angiepange

Sammy3008 wrote: »

Trouble is with us, its my OH who works, I don't, so I guess it would be harder to get a private rent in my name

We have been told that if you can provide 6 months rent up front this will usually get you accepted or a guarantor, but they have to be under 60yrs old, will pass a credit check and earn sufficient income. Also its a case of putting your circumstances to the landlord and seeing if they will accept you.

So far we have been honest with all letting agents we have spoken to,telling them we may petition for BR and vol repossess our home. My DH employed but im not but would both have to go BR. They all seem to appreciate us being up front and quite a few have landlords that its not a problem for.

Angie x