Problem with Mortgage Shortfall!!!! Need help!

ems1981

Hi, I have recently sold my flat for £85k which doesnt cover the mortgage which is £97k. However, I have a £10k unsecured loan on the mortgage so luckily this doesnt have to be paid on completion. The problem now is that once the solicitors and estate agents have taken their fees from the sale I will have a shortfall of about £4k.Northern Rock have said that they need the whole amount of the mortgage to be paid on completion otherwise they will stop the sale going through. I obviously dont have the £4k to pay the mortgage.So what I want to know is can Northern Rock stop the sale of my flat going through?

ILW

ems1981 wrote: »

Hi, I have recently sold my flat for £85k which doesnt cover the mortgage which is £97k. However, I have a £10k unsecured loan on the mortgage so luckily this doesnt have to be paid on completion. The problem now is that once the solicitors and estate agents have taken their fees from the sale I will have a shortfall of about £4k.Northern Rock have said that they need the whole amount of the mortgage to be paid on completion otherwise they will stop the sale going through. I obviously dont have the £4k to pay the mortgage.So what I want to know is can Northern Rock stop the sale of my flat going through?

In a word, Yes.

_Andy_

Did you not do the sums prior to accepting the offer?

benjo

Yes, they can and will stop the sale and you will still have to pay your solicitors costs and if you have already exchanged Im pretty sure there will be associated costs there - I dont know how much though.

maninthestreet

I assume you have not exchanged contracts yet, as no solicitor would (should) allow an exchange to take place when there was an obvious shortfall between the amout the sale would generate and the outstanding mortgage.

happybroker

Unfortunately you're not in a position to sell the flat for £85k unless you can raise the £4k from somewhere.

The £10k unsecured loan will go to a crazy rate from memory and you should look to get a better deal elsewhere, perhaps you can get the £4k at the same time if you are either beyond the point of no return or determined to sell.

Sorry I can't be more positive.