Intrest only mortgage shortfall, Help please

zzzLazyDaisy

DTM1985 wrote: »

I really dont want to go BR but if its the only option .......

It isn't the only option.

The other option is to take the long view, go over to the DFW board and get help and advice to sort out a budget which will enable you to pay off your debts, and then use the money released to pay down your mortgage.

Yes it will take time, but it is a viable alternative to what you seem to view as a 'quick fix' of going bankrupt.

DTM1985

Hi inmydreams,I guess your right I cant afford my debts, I can afford to pay the payments I owe each month and pay my mortgage on an intrest only basis but yeah, thats not paying the debt.The problem is Do I want this monster mortgage that as mike said I could never afford in the first place. And the 25% issue makes me also puts me off taking the mortgage head on. Also would another morgage lender re morgage it on a better deal when its worth so much less now, as I said my current lender doesnt seem to be giving me giving me a good deal and isnt intrested in letting me change products

Burridge60

DTM1985 wrote: »

I was only 20 when I bought and it was sold to me by the mortgage adviser as a really good deal, In hind sight it was the worst mistake of my life and feel very stupid but guess I was young and didn't know much better.( I don't know if there would be a case for a mis sold mortgage)

I think your beef is with the developer of the property.

Did a mortgage advisor really sell a property to you or was he introduced to you to enable your purchase to happen and assisted you in your pursuit of it?

Did the developer also introduce you to a conveyancer?

DTM1985

Mike_parsonnage wrote: »

So when the estate agent told you to take legal advice did you ?

Yes I saw a soliciter the estate agent reccomended but he said He didnt think their was a case. The estate agent said Id paid substantially more than the property was ever worth. Maybe I should get a second opinion in the light of alll the mis selling mortgage cases arising now.That was about 2 years ago and since then Ive kept paying the intrest but ive been getting stressed about the whole situation for a long time now and its getting to the point I HAVE to do something about it

DTM1985

Burridge60 wrote: »

I think your beef is with the developer of the property.

Did a mortgage advisor really sell a property to you or was he introduced to you to enable your purchase to happen and assisted you in your pursuit of it?

Did the developer also introduce you to a conveyancer?

I was introduced to the broker through the developer, they were obviously working together, and was very stupid of me to fall for it all. I think, from google search's that one of the developer was also a partner in the mortgage broker company which has since been struck of the FSA register and he was porsonally banned by the .FSA Guess I fell for it all hook line amd sinker so yeah the beef is with them but this is the mess im in now and trying to sort outYes was introduced to a conveyensor again by them

myhouse_2

Sounds like you don't want to pay your debts rather than can't.
Get another lodger, or two lodgers if you have space. Work some overtime on Saturdays at the supermarket. Cut your expenditure. Pay off all your non-mortgage debts first then turn towards your mortgage. Even if you save 50 pounds each month and put this into repayments on the mortgage it makes a big difference in the longer term (though you won't notice it immediately).

InMyDreams

DTM1985 wrote: »

makes the option of taking the mortgage head on and overpaying etc as sugested by others less appealing....<snip>....I really dont want to go BR but if its the only option .......

From what you've said so far, it looks to me like it isn't the only option, it's just that the other option (trying to get back on track and pay pack what you owe) is 'less appealing'.

I do sympathise with your predicament, but I can't pat you on the shoulder and say 'there, there' and wave any magic wand or condone going BR on what little info you have given. Yes, you may have been young and foolish at 20, and I know you recognise that and don't need it rubbing in, but there are no easy fixes, and no different rules for you because you were so young. Although at least it means you have lots of time to sort it out.

No, of course you don't want this 'monster mortgage' and I understand that you regret taking it out. But there is no chance that you would be able to remortgage... any lender would look at you and run a mile because they will worry there's every chance you will never come good with what you owe. They would be left with a property that isn't worth as much as you owe. Why would they take that risk?

What is your current deal?

Yes, of course you have to do something drastic, but BR is not necessarily it. Have you tried the DFW board yet? Make that SOA tonight...

Burridge60

DTM1985 wrote: »

I was introduced to the broker through the developer, they were obviously working together, and was very stupid of me to fall for it all. I think, from google search's that one of the developer was also a partner in the mortgage broker company which has since been struck of the FSA register and he was porsonally banned by the .FSA Guess I fell for it all hook line amd sinker so yeah the beef is with them but this is the mess im in now and trying to sort outYes was introduced to a conveyensor again by them

I am sorry my comment was less than charitable and I know that you are in a very difficult spot.

The 25% owned by the builder is a big asset that you must have had a plan to save toward buying or been confident your income would be greater in the future so that you could remortgage to buy the extra equity. Or why defer payment for something that can't be assessed in value.

If you had proper legal advice I would venture that any "family" lawyer would probably have put his five pence worth in and you might have been more wise to the situation instead of paying someone one to do legal work to buy your property for you.

I know people using a solicitor in Yorkshire to do their legal work on a development in Essex where local knowledge is a big bonus but they chose them as they were cheapest.

My own kids 25 and 23 wouldn't give my advice any credibility unless someone their own age repeated a similar message to them. But you must have had input from close acquaintances or family at the time.

You are in a difficult position and I would advise a visit to the CAB for some good honest advice about your situation and a fair appraisal of your options.

DTM1985

inmydreams, Im not looking for any kind of sympathy at all, I was just telling my story and wanted to see peoples thoughts and opinions as I couldnt see anywhere to turn. I appreciate everyones reply, and it looks like taking the mortgage head on mite not be such a bad idea. myhouse it is a bit sickening to think of payink over 100K for 75% of a flat thats prob worth about 60 now- 100% so thats whats making me not wanting to pay my debts Burridge, Again not looking for sympathy but my parents 'wernt around' at the time for advice, I asked Someone, The contracts manager of a the company where I worked at he time, someone I'd known for a lot of years and was a good business man. He looked over the deal and said, even if you dont make anything on it you wont loose anything, It was on that advice I based my decission, I wish he told me to not touch it with a bargepoll! At the time though everything was booming and people said 'yeah get on the property ladder while your young. As for the 25% thing, It was sold to me like this 'You buy this package were selling and then a couple of years down the line when its worth more you sell and walk away with a deposit for another house' But then we all know what happened.I went to see CAB on tuesday they gave me an initial interview and are refeering me to someone more specialist but in approx 3 weeks they said

Burridge60

DTM1985 wrote: »

it is a bit sickening to think of paying over 100K for 75% of a flat thats prob worth about 60 now

You have a story of value to many here. They ask "should I buy or rent". You have the obvious example of someone who would have been better off renting the same property than buying it.

Doesn't help you but I hope it helps others to make a rational decision between renting and buying.

Good luck with your credit meetings with your specialist adviser. Just make sure they don't encourage you to multiply your debts by deferring the obvious if it is going to happen any way.