At my wits end with mortgage!

1972ir

Hi,

im just looking for a bit of advice, i have a 160k together mortgage with Nram.

roughly 130k is secured the rest is unsecured.

the house is worth circa 100k


im never going to get out of the hole im in with this mortgage and i have tried and tried to keep my repayments but i can only afford intrest only so im throwing my money at nothing it seems. i am 20k in arrears and went to court last year to stop a eviction.

i want to hand the house back to nram and just get on with my life.
The negative equity of 20k on teh secure element i assuem they will come after me for (thats if i can sell the house) the remaining unsecured element as thats unsecure will i will try go to ccs with to arrange a minimul payment.

Will i ever get a mortgage again?

and can anyone offer anything on anything i have said aboove?

thanks in advance for any help

opinions4u

Will i ever get a mortgage again?

In the next decade, probably not. After that your age may work against you.

But there is no shame in renting.

1972ir

i have a young family and really cant be doing with the stress or hassle anymore and nram are just complete !!!!!! to talk to, very arrogant

CLAPTON

best to speak to a (free) debt advise service like CCCS or Payplan ... go over to the debt free wannabe board

without knowing your full financial details it's impossible to give any specific advice but bankruptcy may be a sensible option.

holly_hobby

There is no longer a repossession register operated by CML - but obv the fallout from your current arrears situ, and any shortfall upon a forced sale will be recorded and will royally b*gger for a possible 12 yrs which is the max term a mge shortfall may be pursued, the unsecured element will be recorded for 6 yrs under CCA regs.

Its not a case of handing the keys back so to speak, the lender after you have breached the suspended possession order (ie you stop payments altogether, which I imagine you will do if you just lock the house up and walk away) will re-apply to the courts to have it enforced. Once a possession order is granted the lender is then permitted to sell the property (for the best price) with or without your co-operation - with as I say any shortfall legally pursuable for a period up to 12 yrs (although some lenders have taken CML guidelines and only pursue for 6).

I completely agree that if you are struggling, there is really no way out of the situation, and are already on interest only, but still not making ends meet - that the sensible thing to do is to recognise the issues and put in place an active management plan asap.

Is the property likely to recoup its value to at least the os mge amount ?

If so, and I'm not sure it this is any use, but have you looked at if the possible rental income for the property will be at a level to both meet the mge, and provide a suprlus to start throwing at the arrears ?

If this is the case you could seek consent to let from your lender, explaining the methodology behind the request (ie the generated rental income, will allow you to both meet the mge & reduce the os arrears), and go into private rented yourself ? (although the mge arrears may affect your application with rental agts whom perform a full credit check).

If the above is a no-no for whatever reason, yes you could consider applying for voluntary bankruptcy order (BO), but this is by no means the easy option it may appear to be.

If granted, although you will effectively walk away from the debts you can't meet (with the trustee in bankruptcy/administrator taking control of all your assests to settle as much as possible with your creditors), this will follow you forever - in so much as even when discharged most if not all financial applications (mges, loans, credit cards) and depending upon what sector you work employers, will ask if you have EVER been the subjecft of a BO - to which you will of course have to answer yes (notwithstanding it will be recorded as public domain info, so will be revealled even on a basic status search), to which if will of course affect the application in accordance with the critera of the Firm, and may well affect your future employment (this is most relevant and damaging, if you are employed withint the financial svc sector).

I would initially speak to your lender, put your cards on the table and see what assistance they can provide. Once you know their stance, you will then be able to effectively plan an escape route from the situation you find yourself in, which of course may well result in considering bankruptcy, but please only go this route, if there really is no other way out of the mire.

You should also speak to Shelter whom are very helpful in matters such as this - http://england.shelter.org.uk/home, and of course the CAB.

Hope this helps .. wish you well

Holly x