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Mortgage shortfall dilema
brr
Posts: 2 Newbie
Hi All
I would be very grateful for any advice.
About 10yrs ago I bought a house with an interest only mortgage amounting to £58k with C&G. Things did not work out the way I had hoped with my then partner and I have the chance to sell the house. Unfortunately there is a shortfall of about £12k. I do not qualify for any support from the shortfall team. I am not sure of the best way to raise the money?
I would be very grateful for any thoughts
I would be very grateful for any advice.
About 10yrs ago I bought a house with an interest only mortgage amounting to £58k with C&G. Things did not work out the way I had hoped with my then partner and I have the chance to sell the house. Unfortunately there is a shortfall of about £12k. I do not qualify for any support from the shortfall team. I am not sure of the best way to raise the money?
I would be very grateful for any thoughts
0
Comments
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Citizen advice bureau might be a first place to start"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
So you want to sell the house for £12k less than the outstanding mortgage?
You either get the lender's permission and make an arrangement to pay back the shortfall in instalments after the sale; or you find an alternative source of finance to provide the shortfall in advance of completion, so the mortgage can be paid in full.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Hi All
I would be very grateful for any advice.
About 10yrs ago I bought a house with an interest only mortgage amounting to £58k with C&G. Things did not work out the way I had hoped with my then partner and I have the chance to sell the house. Unfortunately there is a shortfall of about £12k. I do not qualify for any support from the shortfall team. I am not sure of the best way to raise the money?
I would be very grateful for any thoughts
Do you mean that the house is now only worth £46k, having bought it 10 years ago for £58k at least (assuming 100% mortgage), I am surprised that it has dropped in value.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Thanks folks
The property is in Wales and unfortunately, yes its quite a different market there at the moment.
Finding the alternative source of finance is the tricky part as I am not sure if I should apply for a loan Or alternatively try and cover this with a credit card.
Although I am not sure of the logistics of how this actually would work.0 -
Will you ex partner contribute? After all they are jointly liable for the shortfall.
Where are you going to live when the property is sold? May be easier to stay put and start overpaying the mortgage. So that the issue of the negative equity gets addressed.
Borrowing the money at unsecured lending rates is the most expensive option.
This your issue to find a solution to.0 -
where will you live? Why can't you just overpay to the mortgage rather than paying a loan?0
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