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Any help and advice please!!!!!
mrsherellios
Posts: 1 Newbie
Hello everyone!
My first post so a little nervous but need to get some advice and here seems an excellent place to begin.
My husband and I bought our first home in 2006 - the dreaded 'together' product offered by Northern Rock, NRAM whatever...!!! Anyway we borrowed what is an absolutely ridiculous amount of money (120%) and at the time happy to do so because it got us on the property ladder without having to have saved for a deposit. At the time we were both 24 and had fairly good jobs. Making payments was no problem at all and we were quite happy. Now the product term has finished we are repaying interest only which is at a very high rate. No capital is being repaid so this whole stressful situation seems pointless to me. We are now early 30's and have nothing put away for pension or savings. Only person who has savings is our daughter. Now after having her, my husband is the bread winner and now I am at home our finanaces are more than stretched. I have been looking and applying for work for over 8 months with no success.
We cannot re-mortgage because there is no equity in our home because of fallen house prices. Did I mention that we also took out a second charge? We want to sell our house but of course with fallen property prices combined with the second charge we need to sell our house £40,000 over its value in order to bring us back to zero. Sold for less than that we have a shortfall to deal with. We recognise the latter is the most likely scenario.
Just wanted to know what options might be available to those indiviuals who are in same situation with interest only mortgage. I can only seem to find help/resolution for those who are making repayments on capital. Totally recognise mistakes we have made. Over borrowing at every juncture has left us heavily in debt. So ashamed!!:embarasse
My first post so a little nervous but need to get some advice and here seems an excellent place to begin.
My husband and I bought our first home in 2006 - the dreaded 'together' product offered by Northern Rock, NRAM whatever...!!! Anyway we borrowed what is an absolutely ridiculous amount of money (120%) and at the time happy to do so because it got us on the property ladder without having to have saved for a deposit. At the time we were both 24 and had fairly good jobs. Making payments was no problem at all and we were quite happy. Now the product term has finished we are repaying interest only which is at a very high rate. No capital is being repaid so this whole stressful situation seems pointless to me. We are now early 30's and have nothing put away for pension or savings. Only person who has savings is our daughter. Now after having her, my husband is the bread winner and now I am at home our finanaces are more than stretched. I have been looking and applying for work for over 8 months with no success.
We cannot re-mortgage because there is no equity in our home because of fallen house prices. Did I mention that we also took out a second charge? We want to sell our house but of course with fallen property prices combined with the second charge we need to sell our house £40,000 over its value in order to bring us back to zero. Sold for less than that we have a shortfall to deal with. We recognise the latter is the most likely scenario.
Just wanted to know what options might be available to those indiviuals who are in same situation with interest only mortgage. I can only seem to find help/resolution for those who are making repayments on capital. Totally recognise mistakes we have made. Over borrowing at every juncture has left us heavily in debt. So ashamed!!:embarasse
0
Comments
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I can't see any solution to the circumstances you describe.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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Since you are on Interest Only, you owe the lender the whole amount you borrowed (120% of the house value at that time). Plus the added second charge amount.
You mentioned you are already stretched from a financial point of view, so anything you spend needs to be looked at properly.
In order to find out where you stand, you may well have to get your house valued. This will show how much under you are.
You may want to post your queries to the debt-free board to get further assistance in terms of what other help is available.
Best of luck0 -
All you can do is start paying off the capital. Go onto the DFW threads, post a Statement of Affairs and get help with your budget. It'll be a long haul, but you'll get lots of support on there.0
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