Help!Together mortgage no equity will they take house?

fk9af

Hi, I'm thinking of going bankrupt. I have a mortgage which is made up of 76K secured, 20k unsecured, a value of 80k (so no equity) and other debts of 25k. Will they take the house off me if there is no equity?

Also does anyone know how it affects your chances of buying a house in the future?

Any help would be appreciated, thanks

Nat

Richard_S

fk9af wrote: »

Hi, I'm thinking of going bankrupt. I have a mortgage which is made up of 76K secured, 20k unsecured, a value of 80k (so no equity) and other debts of 25k. Will they take the house off me if there is no equity?

Also does anyone know how it affects your chances of buying a house in the future?

Any help would be appreciated, thanks

Nat

Hi there,

If you have very little or negative equity then you should have no problem in keeping your house. It can become a little involved and there are no guarantees but from what you've written so far it should be a formality.

Bankruptcy stays on your credit file for six years but the experience of others is that after a couple of years you should be able to secure a mortgage albeit at a premium to the prime lending rate.

Richard

Conor_3

Just to add...

If it is in joint ownership and only you are banking, make sure that your other half "purchases" the ORs interest otherwise they can come after it in the future. Even if there's no equity in it now, still get the OR to sign their interest over. There'll be some legal fees to pay but it secures the home. Make sure it is one of the first things that gets sorted out. Ask the OR at the interview.

gettingitsorted

Hi nat
just to add if a property is in neg equity then you buy the interest for a £1 + £211 fees

fk9af

That's great, thanks so much for all your help.

Do you think Northern Rock will wipe out the unsecured amount, and leave me with the mortgage to pay as normal?

I've been thinking about whether to go into renting, as I have found out if I want to sell my house within the next 3 years I have to pay £3K and the value hasn't risen at all.

Thanks

Conor_3

They will only wipe out the unsecured amount if it is solely in your name. Any debts that are in joint names, the responsibility for meeting the debt goes to the joint debtor.