House questions

Bohemian_Raspberry

Ok so myself and partner are currently looking at going BR as our debts have sprialled out of control and the CCCS think this is the best option for us, as we are in our early 20's and would be able to get a fresh clean start.

We purchased our house in Oct 2007, without a deposit and with an additional unsecured loan on top of the mortgage (total borrowing from mortgage company was £88875 for the mortgage, plus a further £10k unsecured loan) The purchase price of the property was £92.5k, so we 'paid' a deposit of £3625 using the unsecured loan.

Since Oct 07, the value of the property has decreased quite significantly to approx £85000, meaning we are now in negative equity to the tune of £7k (mortgage balance still at £92K) at the time of looking to go bankrupt. Now obviously the unsecured loan from the mortgage company will go into the bankruptcy (though the CCCS have advised they may soon go for a Charging Order on the house for this debt), but based on these figures is it likely that we would be able to keep our house, if we sold the beneficial interest to my OH's dad?

Bohemian_Raspberry

** bumpity bump **

copier_guy

Have you got any other borrowing apart from your mortgage and unsecured loan?

Is this a Northern Rock together mortgage?

Bohemian_Raspberry

No copier it's a Godiva MOREgage product (part of Coventry Building Soc) and yes, we've got approx £22k of other unsecured debts, which is the main reason for us going BR. We can afford the mortgage and other living costs, we've just got no way of paying off all the unsecured debt.

peachyprice

As there is no equity in the house it's highly unlikely you would lose the house. As for the beneficial interest, you would be able to buy this from the OR yourselves for £1 each, plus £211 legal costs.

The mortgage comany cannot get a charging order on the house until they have at least a CCJ against you.

HTH