Major problem with property I'm letting out (advice needed)

Jsuk

Hi, I lived in a one bedroom flat with my wife and our daughter. About 6 years ago we got an offer to buy a 3 bed house from a friend for what at the time was a good price. As I still had 6 months on my mortgage and a lot to pay to get out of it a mortgage adviser told us to keep it and pay interest only for 6 months then we would easily sell it. Within those 6 months the housing market went tits up and for years we were trying to sell, paying 2 mortgages and getting into a lot of debt. We are now in negitive equity on the flat and have someone renting it, although we make a loss each month with the payments.

Recently we got into arrears but have agreed payments to pay them off, however we have just revived a letter saying that we are due a review for our mortgage and they will not agree to letting us rent it out unless we pay off the arrears (around 2000) within a month. If we cannot do this we will have to give our tenant notice and re occupy the property.
We have 3 children and a dog and could not
Move back in. We have no equity in the house we live in and if our tennant moves out we will not be able to pay the mortgage
On the flat which is twice the ammount of the house even without the arrears. We Have no savings and quite a lot of debt which my wife has been wonderful about and sorted payments for etc. we are paying intrest only on both mortgages. any advice on what to do would help. Thankyou Js

opinions4u

There is little point in posting the same thing three times.

If anybody wants to reply, please do it through the link below.

https://forums.moneysavingexpert.com/discussion/4054225

Annisele

First posted here, and also here.

OP - you're new, so you don't know this - but it gets confusing when people start the same thread lots of times. If you want to 'bump' your first thread (so it goes up the page rankings) you can just reply to it yourself.

(Edit - too slow - what o4u said!)

CBR600F_2

What kind of dog do you have?

Jsuk

Ok thanks. Btw a golden cocker spaniel

maninthestreet

Is the breed of dog really important?

CBR600F_2

I wouldn't've asked if it wasn't important.