Voluntary repossession

Jeff2011_2

... I was made unemployed last week , and have little chance of work soon ... Ive a mortgage (singly) - £650 a month - which we just cant afford . My partner is working , and she is going to rent a place for £250 a month (which is actually more suitable !) so at least we have a roof over our heads . I dont think there is any option but to hand keys over asap , and move . I have been honest with the RBS , but all they say is as long as Im paying something , thats ok for a while . But I dont have ANYTHING ! ...

WelshNic

Even if you hand the keys over you're still liable for the mortgage payments - and any interest/charges accrued.

Why can't your partner pay the £250 to the mortgage if RBS have said they're happy if you're paying something?

BoGoF

Before you do anything rash, how much do you still owe on the mortgage and how much (realistically) is it worth.

Even if you hand the keys in you will still be liable for any shortfall between what what it sells at at auction and the amount you actually owe.

Jeff2011_2

.... £99,000 owed , but worth roughly £115000-£120000 ... but we have to move asap or chance of other house (to rent) falls through ...

Jeff2011_2

... The RBS only accept this for 3 months ... The chance of the other accomodation only lasts until end of week ... so it would be like throwing more money after bad ? ...

DVardysShadow

Jeff2011 wrote: »

.... £99,000 owed , but worth roughly £115000-£120000 ... but we have to move asap or chance of other house (to rent) falls through ...

You are about 4 months away from anything happening about a repo and if the £250 goes to the mortgage, you may get a bit longer. So, you should try to sell the place yourselves for say £105,000. This will allow you to go out and rent if you have not sorted a job. It makes more sense to rent when you have sold your house.

To do what you are proposing will be to throw away between £6000 and £21000 and you will pick up more debt from a repo which will hang around your neck like a millstone for the next 15 years. Your current plan is merely increasing your outgoings by £250/month plus council tax for no good return.

And since you are very novice at this living on the edge, you should remember when you sell not to let out a whisper of the fact that your sale is forced. This is a mistake which could cost you thousands if someone decides to gazunder you.

MegaMiniMouse

If you are secure in your relationship with your partner, and she is secure in her employment, and the place she is about to rent is actually more suitable for you both than the place which you currently 'own' (???), and at not much more than a third of the price, then I would be very tempted to tell the RBS to go stuff themselves!

Can you live with a crap credit history for the next 6 years? Is your partner's credit history good, and likely to remain that way?

Consider bankruptcy - but don't just take my advice, go to a trained adviser (CAB, National Debtline, CCCS)

MMM

keanelover

Can you not rent your place out and move in with your partner?

Burridge60

MegaMiniMouse wrote: »

If you are secure in your relationship with your partner, and she is secure in her employment, and the place she is about to rent is actually more suitable for you both than the place which you currently 'own' (???), and at not much more than a third of the price, then I would be very tempted to tell the RBS to go stuff themselves!

Can you live with a crap credit history for the next 6 years? Is your partner's credit history good, and likely to remain that way?

Consider bankruptcy - but don't just take my advice, go to a trained adviser (CAB, National Debtline, CCCS)

MMM

Beware of association with your partner through your credit records and electoral roll.

MegaMiniMouse

Burridge60 wrote: »

Beware of association with your partner through your credit records and electoral roll.

As I understand it, this should not be an issue - but it is certainly worth bearing in mind

MMM

Wh05apk

MegaMiniMouse wrote: »

Consider bankruptcy - but don't just take my advice, go to a trained adviser (CAB, National Debtline, CCCS)

MMM

Bankruptcy should be the last option, not the first, from what we know the OP has net assets of ~ £15k

Suggest getting the house sold asap, to at least get hold of some of the equity, don't hold out for £120k, if it is repossed and sold you will probably be lucky to get £90k after costs etc, sell now to protect what you have.