Can't afford my mortgage anylonger

raslwale

Hi there
I need some advice. Myself & partner can no longer afford our Nationwide mortgage. We bought our house at the peak of the market (early 2008). I had a better paid job then but unfortunately our new income just doesnt cover our repayment. We have a 5 year fixed rate at 5.63% and our house has lost its value quite substantially so no way of selling as it's now worth less than the mortgage we took out. We looked into renting but again the rent wouldnt cover the mortgage. I guess my question is do mortgage companies ever consider putting people on an interest only repayment for an agreed time or freezing the mortgage or something?
Any advice hugely appreciated!
Thanks

VIGILANT22

Fone them and explain problem,

http://www.nationwide.co.uk/payment_difficulties/default.htm

C_Mababejive

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10013261

Debt_Free_Chick

raslwale wrote: »

I guess my question is do mortgage companies ever consider putting people on an interest only repayment for an agreed time or freezing the mortgage or something?
Any advice hugely appreciated!
Thanks

Yes they do (go to interest only) but it depends on the circumstances. Have you called them and asked to switch to interest only?

[Deleted User]

If you continue to live in the house and get a lodger would that cover it?

Radiantsoul

As above, the sooner you speak to them the better.
I think you should probably draw up an income and expenditure schedule. Whatever happens interest will continue to run and they will probably at least want that covered. It is probably worth thinking about an ultimate "exit strategy", is there a prospect of your income rising or are you going to have to sell and address the shortfall.
If it has more than one bedroom you might want to consider a lodger as well.