Interest Only Mortgage - Negative equity.

edited 30 November -1 at 1:00AM in N. Ireland
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TDon_2TDon_2 Forumite
5 Posts
edited 30 November -1 at 1:00AM in N. Ireland
Looking for some advice on my situation from anyone who may have been in the same boat.
Basically I was miss sold a mortgage back in 2006/2007. The broker, I have since found out, was a con man, who has since had his mortgage broker license revoked and filed for bankruptcy.

At the time I was young and naive (no excuse I know) and believed him when he said everything was above board. He sold me an interest only mortgage that was supposed to switch to full repayment after 5 years. To cover the 5 years, he sold me an endowment policy. Turns out the mortgage was interest only for 25 years and the endowment policy was in fact a decreasing life insurance policy.

I didn't know any of this until very recently and as it turns out, my 120k mortgage I've been paying for 10 years is still at 120k and I have no payment plan to pay off the capital at the end.

I was thinking of remortgaging but am 45k in negative equity, so no go there.

What options are there?

I was thinking of asking my mortgage company to extend the term of my loan and switch me to full repayment, would that be something they are likely to do, has anyone on here done it?

I've a decent credit rating, no other debt, never missed a payment, for anything and have another 30 years left of working years.

Any help/advice great appreciated.
TD

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