Mortgage help!!

terfla

WE are struggling with our finances as my husband lost his job in feb and we have now used all our savings!!
We have just changed our mortgage from repayment to interest only but even this is a struggle but all the bank is prepared to do.

They have told us that as the house prices have dropped and we only purchased our property a year ago that we now have negative equity!! we owe £203,000 and the value of our property is £193,000. We are also on a fixed mortgage for another 4 years!

Not sure what to do now...even if we tried to see the property and go into rented accomodation we probably wouldn't get enough to pay off the mortgage.

What would happen if we did sell the house and still owed the money on the mortgage?

Any other suggestions?

Mrs_Bumble

Who is the lender?

Does your husband qualify for the Income Support Mortgage Interest payments, or has he applied?

Have a look at Shelter's website
http://england.shelter.org.uk/

and this FSA booklet

http://www.moneymadeclear.fsa.gov.uk/pdfs/mortgage_cantpay.pdf

The lender is required to by sypathetic when dealing with customers in financial difficulties, check through all the info on the above and make sure your lender is doing all that they are supposed to do.

In answer to your final question if you sold and there was a balance outstanding then this would still be owed to the lender and you would have to come to an arrangement to repay it.

terfla

No unfortunately by husband does not qualify for Income support.

Thanks for the other advice tho!

Mrs_Bumble

Hope it helps:) There is good info in the leaflet and Shelter are really good.

Will the lender extend the term?

Can you take in a lodger?

Growingfamily

Hi terfla, we're in almost exactly the same position (although it's me who's out of work not my husband, due to 1st pregnancy, bereavement and now I'm due our second baby in November). Hope you get some good advice soon.

I'm with NR and I can't see any way of bettering our circumstances at the moment, both of us having rubbish credit histories (although we have paid of about £30k in last 2 years and are trying really hard to pay off the rest). Good luck.