House, mortgage, etc

somadjoe

Any thoughts on this would be much appreciated.

I met with the IP guy today. We have £150000 of unsecured debt in my name following the collapse of my business 2 years ago and I will go bankrupt in the next few weeks.

We currently have a mortgage in joint names but have some arrears. My mum has offered to clear the arrears for us as we desperately want to keep our home.

I spoke to the mortgage company today who said that they cannot offer us any fixed rate deals until the arrears are cleared, I didnt mention BR to them.

Has anyone else gone BR and kept with their mortgage. We're currently on SVR and no doubt this will go up. We thought that if we fixed before I do it we would at least know what we have to pay each month for the next few years.

The IP has said that if we go back to the mortgage company post BR there is no chance we'll be offered a fixed rate even if we clear what we owe.

Anyone else's experience would be a great help

Thanks

SMJ

dojoman

Does the house have any equity in it?

skylight

It really depends on how much equity is in it.

You can keep a property, but it does depend on equity.

somadjoe

We are in around £10k negative equity

somadjoe

I understand that we can keep it but I'm looking at fixing the mortgage rate prior to BR.
Will this be looked on unfavourably by the OR?

skylight

Neg Eq is good for you. Is this a £10k an accurate guestimate? Have you compared local prices etc or had a valuation recently? The OR is not likely to have any interest in a property in neg eq, but they do have the right to retain their interests for three years before handing/selling the BI back to you; saying that most tend to want to deal with it quickly.



Your IP is right with the mortgage rate though. With a BR on your file there is no way you will get a better rate. Mind you, you might not now either due to your credit rating.

The OR isn't going to bat an eyelid at you fixing your mortgage rate before BR. It may bring down your outgoings too and that is always beneficial.

somadjoe

Two houses next door but one on either side gone for less than we owe in the last month. One for £7k less than we owe another for £17k less than we owe.
We're not looking to change mortgage provider and until 14 months ago had never missed or been late with a payment to them in 13 years

ilovebanksMCMLXXXI

If you have negative equity it's highly likely you'll be able to keep your home.

Think about it from the bank's point-of-view: You already owe X-amount of pounds so if they take your house with a neg eq of £10,000 then they are going to initially be another £10,000 worse off.

If it was nearer break-even or had positive equity it'd be a different story but I agree with skylight, neg eq is good for you in your current position.

One last thing - when you say you're going to be bankrupt in the next few weeks; do you mean you're going to file for it or it's going through?

I only ask because if it was going through in a few weeks I reckon you'd know by now if you were keeping your home or not so can only assume you're going to file for it.

If that's the case, it's not completely out of the question that bankrupcy isn't your best option - especially if the majoriy of the debt came via failed businesses.

Hope you get sorted - I'm sure you will

All the best

somadjoe

Thanks Ilovebanks

I'm going to file in the next few weeks so I'm currently going through stuff with IP. He has recommended BR.

You suggest that BR may not be my best option, I'd welcome your thoughts on why.
I have a business debt but I also used cc for travel and business expenses for which I'm personally liable (£40k). I've put this as part of the £150k debt. We have no other loans except our mortgage.

I've struggled hard to not go BR, I've always had this fear of it and to be honest it still terrifies me.

ilovebanksMCMLXXXI

Hi.

I'm looking from it from your 'home point-of-view' really - If you file to become BR it's unlikely they will take your home in the long run due to the neg eq.

That said, once BR is complete a bank can and my choose to simply recover everything. Although they would be taking on further debt in the form of your £10,000 neg eq they may look at the bigger picture and consider you may not be able to keep up with future payments and cut their losses with you.

Banks can be a bit unpredictable at times! Sadly!

If I was you, I would call PayPlan and discuss the situation.

I have a strong feeling they will have a plan for you, quite likely an IVA of sorts where they can negotiate your situation with your creditors.

If you've included business debts as part of your calculations that will work in your favour, they will build your situation around your failed business and you've got a good chance of getting some very decent assistance from creditors.

It would be devestating to lose your home so if there is an option that improves your chances of keeping it it's obviously well worth looking at.

Hope that helps a little

Best regards

debtinfo

ilovebanksMCMLXXXI wrote: »

Hi.

I'm looking from it from your 'home point-of-view' really - If you file to become BR it's unlikely they will take your home in the long run due to the neg eq.

That said, once BR is complete a bank can and my choose to simply recover everything. Although they would be taking on further debt in the form of your £10,000 neg eq they may look at the bigger picture and consider you may not be able to keep up with future payments and cut their losses with you.

Banks can be a bit unpredictable at times! Sadly!

If I was you, I would call PayPlan and discuss the situation.

I have a strong feeling they will have a plan for you, quite likely an IVA of sorts where they can negotiate your situation with your creditors.

If you've included business debts as part of your calculations that will work in your favour, they will build your situation around your failed business and you've got a good chance of getting some very decent assistance from creditors.

It would be devestating to lose your home so if there is an option that improves your chances of keeping it it's obviously well worth looking at.

Hope that helps a little

Best regards

I think this is wholly unrealistic, i have never seen a bank repossess if the mortgage is up to date, i dont think they actually can, you need to be in breach of the terms and they would need to get a repossession order which i am fairly certain a judge would not grant.