Northern rock 125% mortgage and now redundant for nearly a year!

flyboy180

5 years ago I signed up to a 125% mortgage/secured loan with Northern Rock. Broken relationship, nowhere to live and in debt with an IVA and Northern Rock were more than willing to help!!!

I was a self employed aircraft engineer and earned more than enough to repay my mortgage. Then came the crash and after 10 years working for the same company I found myself redundant. I have been unemployed for 1 year. Usual replies to job applications .... too old (but of course they never say this), over qualified etc.

No insurance but used all my savings to meet my monthly payments and then the government helped me to pay my interest. On interest only for a year and now been told by Northern Rock that I cannot be on interest only and need to repay full payments. I have heard that a new FSA ruling means that lenders cannot offer interest only unless a repayment vehicle is in place.

The phrase that springs to mind is "horse, door and bolted!"

Been sent a budget planner, which makes great reading ..... £67 pw week JSA and mortgage repayments £900 per month! Do I bother listing gas, electricty, water food etc. I cannot ask my family and friends for anymore help.

Tried selling my 1 bed flat but cannot get a purchaser with a 40% deposit! If I sell for any less I will be in negative equity.

So my question is: Northern Rock caused all this so how do I tell them I CANT DO ANYMORE!!!