Help, advice needed - Stuck on mortgage

bchop

Good Afternoon,

I am seeking some insolvency advice.

I was advised by the bank in 2007 to be named on a mortgage with my Mother as she was having financial difficulties but could not borrow sufficient funds to cover the debt in her sole name. I was advised to go ahead on the basis that i could easily be removed down the line when he no longer lived in the property, which was my Mother's house - which she bought from the Council under the Right to Buy Scheme two years earlier. They took out a 95% mortgage and a further £25k unsecured loan (to cover my Mother's debt).

Since then I have moved out of the proeprty to live with my partner and wanted to be removed from my Mother's mortgage so that i and my partner could buy a house together. It was only then that it emerged that my Mother had been defaulting on both the secured and unsecured element of the loan for quite some time. I was never informed by the bank of this.

Because of the arrears, the total debt, including both secured and unsecured elements amounts to approximately £113k. We had the property valued in 2010 at £60k. There is obviously a huge shortfall.

We have exhausted both the bank and the Financial Ombudsman Service's complaints procedure in which we claimed that this product was mis-sold to me and the mortgage not managed properly. We have been unsuccessful on both as we can show no evidence that he was advised that he could easily be removed down the line!

We made one final attempt to apply for my name to be removed from the Mortgage, but have been turned down on the basis of lack of affordability and bad credit score on the part of his Mother.

We are now in a position where we need him to come off this mortgage by whatever means, whether it be bankruptcy or otherwise. It won't be long before my Mother can no longer work due to her age, and in these circumstances the liability to pay will fall entirely to me who has joint liability. There is absolutely no way that I would ever to be able to pay for this mortgage and loan, or indeed ever discharge the large amount of negative equity. This house is nothing to do with me and we have our own home and bills to pay (the home of course being in my my partners name). His Mother is willing to walk away from the property and hand back the keys. Even become bankrupt also if necessary.

But we have no idea where to start with this, or from whom to seek advice.

I therefore would be extremely grateful if you could please point me in the right direction.

I look forward to hearing from you.

Kind regards,

Hovel_lady

Duplicate thread on the bankruptcy forum.

https://forums.moneysavingexpert.com/discussion/comment/52940255#Comment_52940255