Negative equity HELP

RC83

I am looking for some advice if possible? I have a mortgage with NRAM that I have had for 8 years I currently, owe £62k (monthly payments £345.32) which is secured and £15k unsecured (monthly payments £106.56) I am on the standard variable rate of 4.63% with 31 years remaining on the mortgage. The property is only worth £60k max. I can't move to a lower interest rate due to the negative equity on the property although I know there are deals available with other lenders where i could borrow that and reduce the term and still lower my payments. I have recently lost my job but have another that pays less and using the small savings I have to pay bills but can't see me getting to the stage where I can't make the mortgage payments. Cany anyone provide some advice?

Sorry if I am rembling a bit.

ACG

The only option I can see is to request consent to let, let the property out and you to rent somewhere cheaper or move back to parents maybe?

You could potentially sell the property and arrange a payment plan for the difference but I *think* the rate goes up on the unsecured bit if you sell up? I could be wrong however, but it is worth checking.

RC83

Thanks for your reply I wasn't sure if any of these government schemes where you can write off unsecured loans would work or if you can only use that for credit cards and loans. I have also thought about just letting it get repossessed and renting somewhere and build my credit score back up and save for a new place.

ACG

If you let it get repossessed you still owe the debt. It just means that they sell the property on your behalf, they will probably get a low ball offer and charge admin fees along with late payents on your mortgage in the meantime and then come after you for the difference.

Dont take this the wrong way, but be an adult take responsibility and you will find that your credit report will look a whole lot better than if you were to just stick your head in the sand and walk away. Otherwise you will end up with negative markers on your credit report for the next 6 years or so, possibly longer depending on how long it all takes to go through. They may even decide to make you bankrupt, and this is something you will have to decare forever more.

Thrugelmir

Speak to the lender and be totally frank about your situation. Have an income and expenditure statement prepared beforehand. Better to discuss than let the situation simply run out of control. There's no easy answers and possible some difficult decisions to make.

Katzen

Any chance of getting some extra money? 2nd job evenings and weekends? Got a spare room you can rent out, either lodger or air b'n'b? Or a garage you can rent? What are your chances of your earning improving? Can you bridge the gap short term with eBay? Whatever you do, don't ignore it