HELP...near repossession...need advice!

time2Bfree

This is my first property which I bought for 200K with a 20K deposit but interest only mortgage!!! I had to move out and rent it because I went back to uni but due to tenancy nightmares, I am seriously in arrears and have reached the court stage. Tried to sell it so got an extension on the repossession but buyer has pulled out and I'm stuck!! I'm self-employed but have poor credit history. Don't want 2 lose the property but not sure what my best options are. Remortaging will only give me 85% of the value (not enough to cover arrears + penalty), should I go down the secured loan route? Need help/advice from anyone and everyone........

Details

Outstanding mortgage £187,791
Early repayment Penalty 6%
Max Current value £220,000

mikeyboy

time2Bfree wrote: »

This is my first property which I bought for 200K with a 20K deposit but interest only mortgage!!! I had to move out and rent it because I went back to uni but due to tenancy nightmares, I am seriously in arrears and have reached the court stage. Tried to sell it so got an extension on the repossession but buyer has pulled out and I'm stuck!! I'm self-employed but have poor credit history. Don't want 2 lose the property but not sure what my best options are. Remortaging will only give me 85% of the value (not enough to cover arrears + penalty), should I go down the secured loan route? Need help/advice from anyone and everyone........

Details

Outstanding mortgage £187,791
Early repayment Penalty 6%
Max Current value £220,000

Hi there,

Firstly take some deep breaths and try to calm down, i know that's easier said than done, but try to keep calm and postive.

I think you should go and speak to CAB and get their help, they are very understanding and will be able to explain your options better.

Do not rush into anything, have you rung your mortgage company and explained the situation you find yourself in? it is in your morgage companies interest to keep you in the property. Repossession is £££ and time consuming for them as a company, they will do everything to asssit you to keep the property.

Mikeyboy

silvercar

If you could find a lender prepared to lend you 90%, that would cover the outstanding mortgage and the 6% ERCs. But I do wonder why you are changing company if that means 6% ERC? Surely its best to stay with the current lender.

Have you thought about taking a lodger?

saver_sam

For the court to consider granting a suspended possession order or stopping a warrant if it has been issued is for you to be able to prove to them you can pay the current monthly installment (CMI) and something off the arrears each month and for you to stick to this arrangement why pehaps you carry on selling the property.

If you can do this then you should apply to the court; if not then the judge may grant an extension in allowing you to sell but without a buyer it might prove difficult.

petermb_2

Hi just a thought, who is the lender and how did you get the mortgage? Did you arrange it yourself or did you use a broker? There may just be some issues that could assist.

petermb_2

There may be some other issues that could effect the outcome of your situation. Please send me a personal message with some way to contact you. I will gladly do what I can for you.
regards

Peter

petermb_2

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