help - losing my house?

billybobz

hi there

bought house in 2007 - 125k.

2 year fixed deal.

for some reason, broker set me up with a ~7 year mortgage, interest only.

plan was to remortgage in 2009. crash happend and wasnt able to - lender put me on svr.

called lender about 18 months ago to extend term, was told i could, but family issues got in the way and for some bizarre reason never got around to it

called lender again now to extend, told me i cant, as they value house at 106k and i owe 119k.

i have 1 year and 11 months term remaining.

never missed a payment. good credit history.

do i have any option other than to sell the house?

thanks

Senior_Paper_Monitor

Your age ?

Your income ?

Your other financial commitment and credit status ?

R_P_W

billybobz wrote: »

hi there

bought house in 2007 - 125k.

2 year fixed deal.

for some reason, broker set me up with a ~7 year mortgage, interest only.

plan was to remortgage in 2009. crash happend and wasnt able to - lender put me on svr.

called lender about 18 months ago to extend term, was told i could, but family issues got in the way and for some bizarre reason never got around to it

called lender again now to extend, told me i cant, as they value house at 106k and i owe 119k.

i have 1 year and 11 months term remaining.

never missed a payment. good credit history.

do i have any option other than to sell the house?

thanks

7 year mortgage for 'some reason'? But you agreed to it surely?

Wh05apk

I think unless you can get the mortgage down below 85% you will struggle to get a remortgage elsewhere, all you can do is contact your lender and see what they can do to help.

Senior_Paper_Monitor

and I forgot - who is the lender ?

ACG

You could maybe make overpayments to bring the balance down and hope the lender allows you to go on to a repayment mortgage when the mortgage comes as you have a good record?

But if you answer the questions the others have posted there could be other options.

billybobz

R_P_W wrote: »

7 year mortgage for 'some reason'? But you agreed to it surely?

of course. market was booming in 07 and didnt question the 'expert' broker when he said I could simply get a new deal in two years time.

Wh05apk wrote: »

I think unless you can get the mortgage down below 85% you will struggle to get a remortgage elsewhere, all you can do is contact your lender and see what they can do to help.

They said they cannot do anything.

Senior_Paper_Monitor wrote: »

Your age ?

Your income ?

Your other financial commitment and credit status ?

31
40k
nil. good credit status.

lender is santander.

ACG

Ask them to put it on repayment and extend the term. The issue is probably the fact you want it on interest only?

billybobz

ACG wrote: »

Ask them to put it on repayment and extend the term. The issue is probably the fact you want it on interest only?

Hi. No I understand now that nobody does interest only, so happy to go repayment but they wont extend the term full stop.

They said I needed 10% equity at least to get a new deal.

Does this mean I need to pay 24k to bring the 119k owed to 96k owed. (with the 106k valuation)

billybobz

Any advances on this folks please?

dotdash79

billybobz wrote: »

Does this mean I need to pay 24k to bring the 119k owed to 96k owed. (with the 106k valuation)

Thats the long and short of it unless you can find someone to give you a higher valuation.