Giving up House

davetheman

Thanks, yes our SL rate has gone up a lot as rates came down also.

Have found a bigger hours on our estate for £900 per month, would however move further away, but gives the idea we are paying way too much

sophistica

Well Kepar, i am not such a twit as i have over a £1m in equity on 4 properties!

sophistica

I have an idea for you. Who is bankrupt? Is it you? Or you and your wife? Who is on the SL loan? Can you ask the mortgage company transfer the mortgage to your wife only and start negotiations on the SL loan to pay them a small sum of money to cancel it/write it off. Tell them that otherwise you will relinquish house. I have done this twice for friends and my brother. It can be done.

sophistica

And i have just checked Mervyn Kings statement of yesterday and the financial press bank of england rates are forecast to stay low and may not rise until 2015.

kepar

sophistica wrote: »

And i have just checked Mervyn Kings statement of yesterday and the financial press bank of england rates are forecast to stay low and may not rise until 2015.

Mortgage rates will go up as the banks require money, regardless of Bank of England rates.

kepar

sophistica wrote: »

I have an idea for you. Who is bankrupt? Is it you? Or you and your wife? Who is on the SL loan? Can you ask the mortgage company transfer the mortgage to your wife only and start negotiations on the SL loan to pay them a small sum of money to cancel it/write it off. Tell them that otherwise you will relinquish house. I have done this twice for friends and my brother. It can be done.

But the wife if she is not br will have to earn enough to take the mortgage on, which means that she will have to earn about 25% of the mortgage yearly.
Also as it could be classed as a new mortgage the mortgage company could ask for the negative equity to be made up and 20% deposit. I am sure if there was that amount of money available they would not be in this situation.

davetheman

We are both BR and both discharged 2 years ago, so can't see any other solution

sophistica

Dave, ring the SL company explain that you are planning to relinquish the property and that the only other solution is that you settle the debt and then go in hard e.g. abut 5% of what you owe or whatever you can afford even if it is only £200. Most of these banks etc take the view that anything is better than nothing...they write off debts all the time. I gave this advice to my brother last year and he owed £750k to a major bank who wrote off his loan for £45k. You have nothing to lose and everything to gain.

kepar

Dave , quick question are you in negative equity from the mortgage or the mortgage and secured loan combined?

sophistica

Dave, a further thought...are you on a repayment mortgage or interest only? If you are on a repayment, it is very easy to ask your mortgage lender to switch you to interest only and check to see if they have any cheaper rates. At the end of the term you will still owe the capital but it is a good short term fix. It could reduce your mortgage a lot. But you must see if you can get the SL written off.