help - losing my house?

carslet

Really bizarre situation you are in, cant think why anyone would recommend a 7 year mortgage even more so on interest only. so really looks like unless you can pay 24k to bring the 119k owed to 96k owed in the 1 year 11 months it looks like you have no choice, are you able to do this?

Senior_Paper_Monitor

At what level have you pursued the extension with Santander ? I am somewhat surprised by their apparent stance taking into account your age/income - and the rather daft original mortgage structure.

billybobz

carslet wrote: »

Really bizarre situation you are in, cant think why anyone would recommend a 7 year mortgage even more so on interest only. so really looks like unless you can pay 24k to bring the 119k owed to 96k owed in the 1 year 11 months it looks like you have no choice, are you able to do this?

Not really, I can probably muster around 10k.

Senior_Paper_Monitor wrote: »

At what level have you pursued the extension with Santander ? I am somewhat surprised by their apparent stance taking into account your age/income - and the rather daft original mortgage structure.

I had an appointment set up to extend the term. They wanted to review my income and outgoings. However, before the appt, they called to say they had done some checks and term extension is not possible as I am in negative equity!

Is it worth escalating up the chain?

They said the valuation was based on halifax house price index? Is this what all lenders use?

ILW

Cannot understand the 7 year mortgage bit. Are you sure?

carslet

billybobz wrote: »

Not really, I can probably muster around 10k.

You are on a repayment now?

if you pay the 10k off now, and pay for another year, with any over payments you can too, houses are apparently going up in value, maybe you will be able to renegotiate in a year.

_Andy_

I'm failing to understand why you entered into a mortgage agreement which would mean you had to pay back the entire balance in 7 years.

dotdash79

billybobz wrote: »

They said the valuation was based on halifax house price index? Is this what all lenders use?

You might be able to pay for a valuation do be done rather than them using a computer valuation. This would help if you have made any improvements to the place, and might help bridge the gap.

billybobz

ILW wrote: »

Cannot understand the 7 year mortgage bit. Are you sure?

100%. Term was about 7.5 years.

carslet wrote: »

You are on a repayment now?

if you pay the 10k off now, and pay for another year, with any over payments you can too, houses are apparently going up in value, maybe you will be able to renegotiate in a year.

This might be the way I have to go. Not good for my wellbeing however, all that time just sitting and hoping things improve.

I'm on interest-only at the moment and have been for roughly the last 6 years.

_Andy_ wrote: »

I'm failing to understand why you entered into a mortgage agreement which would mean you had to pay back the entire balance in 7 years.

Because back then things were on the up. It was the height of the property boom and the broker sold me this saying I will be able to easily re-mortgage for a proper 25 year mortgage term, when the initial 2 year fixed term ends.

billybobz

dotdash79 wrote: »

You might be able to pay for a valuation do be done rather than them using a computer valuation. This would help if you have made any improvements to the place, and might help bridge the gap.

So this would then hold more weight than the halifax house price index?

dotdash79

Yes the valuation done by a person would over ride the computer one. However you have a risk of the valuation being lower and it causing your problem to become bigger.