Missing Payment - Credit History?

salamjanab

May I seek some advise for a friend of mine since I have limited knowledge to help him.

He has a mortgage and personal loan account.

He lost job in sept11, then went overseas and found work – which is not paying much but he managed to use his savings and kept on paying both mortgage and personal loan until now (jul12).

Due to family reasons neither he can stay in the property nor her can let out the property he is paying mortgage for - so, what he is paying for mortgage is wasted money.

However as I know him, he like most of us, takes credit history very seriously, so he never missed or delayed any payments.

His salary is not enough and also earning in non GBP currency to pay GBP loans/mortgage is fairly difficult anyways.

Not in the near future, however later he intends to return back to UK and settle.

Now the issue is that his savings have disappeared (mostly in paying for the mortgage and loan) – and his current salary only allows him breathing space but now he has reached to a point that it is impossible for him to be able to pay mortgage and loan.

Can someone please suggest any best solution?

If unfortunately there is no solution at all but to miss payments, which I believe will end up with CCJs. What are the other consequences one should bear in mind, and its adverse impact?

He travels to UK to see his kids. He is British Citizen. Will Home office or airport staff cause any issues stopping him to enter, due to defaults on his name?

How long will it take to get his name cleared? and once his name is clear, will there still be any future adverse consequences.

Thank you for your advise and will be highly appreciated.

CLAPTON

without knowing his financial details it's a little difficult to advise.

why can't be let out the property?

has he asked his mortgage lender if he can go on interest only for a while

if he is going to default then best to default on the personla loan rather than the mortgage

if he defaults or gets CCjs then they will stay on his credit files for 6 years

defaults on debts are civil matters and not criminal; so he will have no problems leaving or entering the country

salamjanab

Thank you Clapton. Please see below in blue.

why can't be let out the property?
Family reasons. This is another story, and he has already explored all the avenues without any luck.In short, his ex lives in his house with their kids. She wont leave or let the proprty sold. He has already spoken to the lender at length. This is another discussion, for now he is after advise and consequences if he stops mortgage and personal loan.

has he asked his mortgage lender if he can go on interest only for a while
Already on interest only.


if he is going to default then best to default on the personla loan rather than the mortgage
What is the difference and consequences of defaulting mortgage vs personal loan. He is not worried of loosing money on property. He has been paying mortgage knowing it was wasted. Now since he cant afford, he will have to stop both mortgage and personal loan

if he defaults or gets CCjs then they will stay on his credit files for 6 years
What happens after 6 years? Will it be a clean page? Since he is not in the country and if he returrns back after 6 years, does this mean no adverse impact or consequences for him?

defaults on debts are civil matters and not criminal; so he will have no problems leaving or entering the country
Thanks. Any other problem you may foresee?
Can this affect his future job opportunity?

DCFC79

salamjanab wrote: »

T


defaults on debts are civil matters and not criminal; so he will have no problems leaving or entering the country
Thanks. Any other problem you may foresee?
Can this affect his future job opportunity?

Might well depend what jobs he applies for ?