Needing advice, in neg equity and cant pay off

tiddles2000

Hi

I wondered if anyone could possibly offer any advice.

We (apparently now being advised) were missold a interest only mortgage 10 years ago, we have no pension or ISA and the property we bought is now wortk nearly £40k below the original price so we are completely stuck.

The mortgage ends in a couple of years and we will be expected to pay the full amount but we just don't have it. It is becomeing such a worry and a burden that we don't know what best to do.

The house is in a state of disrepair as the upkeep is to much for us and if we do a voluntary reposession, I believe we could end up paying a lot more.

Any advice? In an ideal world, I would love nothing more than to walk away from it. The mortgage company are very inflexible and strict (specialist lender due to age at the time of end of mortgage) so not a typical high street lender.

Any suggestions gladly welcomed

tomtontom

Why do you think you were missold, did you not understand that you would need to repay the capital at the end of the term?

minimike2

What repayment vehicle did you specify on your application?

tiddles2000

I don't but the company who we spoke with did say this. We were asked if we had an isa, which we didnt, and the broker told is that it wasn't a problem as we could remortgage when we were in a better position - which sadly we got refused on.

I have since been told that interest only should only ever be short term mortgages but I'm not 100% sure, I don't understand them fully so just went with what the broker advised.

tiddles2000

minimike2 wrote: »

What repayment vehicle did you specify on your application?

I honestly cannot remember sadly as it was 10 years ago. The guy who filled the details in just guided us and we signed No one to blame but ourselves really

tiddles2000

Just to add, the broker closed down not long after and I heard a few words that they were less than desirable

tiddles2000

tiddles2000 wrote: »

I honestly cannot remember sadly as it was 10 years ago. The guy who filled the details in just guided us and we signed No one to blame but ourselves really

But he was aware that we didnt have an ISA as it was explained it wasnt an affordable option at the time

Thrugelmir

tiddles2000 wrote: »

But he was aware that we didnt have an ISA as it was explained it wasnt an affordable option at the time

I guess like many people at the time you bet that the property would increase in value and a consequence took the chance. Suggest you ring the National Debt Helpline, which is a totally free service, for help.

https://www.nationaldebtline.org/

Your choices are somewhat limited as you've identified, but you still need to maintain a degree of control over the situation.

tiddles2000

Yes, sadly their advice was to remortgage but I can't get another mortgage so kind of stuck. I suppose the only option is to keep up the payments until it runs out in 6 years and then they will reposses and make us bankrupt. Not ideal

AnotherJoe

tiddles2000 wrote: »

But he was aware that we didnt have an ISA as it was explained it wasnt an affordable option at the time

Given that, the only possible misselling was giving you a mortgage in the first place, since by definition you couldn't have afforded a repayment mortage as the extra cost would have been roughly the same as payments into an ISA.

You'll have to contact a debt advisory service as recommended in other posts.