Phoenix shared equity night mare

LittleMrsThrifty

Spamiad, could you post a full statement of affairs (SOA)? Surely if there is anyway of keeping the flat this would be preferable to losing it. People here are very helpful and non-judgemental so can help you assess whether the issue is managing the funds you have, increasing the money you have coming in, or a bit of both.

hazyjo

How many beds? Any chance of taking in a lodger?


Bit of a longshot one here... there's a competition board. Enter everything you might be able to sell, and make sure you actually sell it!It's partly why it was added here in the first place.


This is the link to them in end-date order. So go to "E: 26/03" which (on my computer) is currently on around page 75: https://forums.moneysavingexpert.com/forumdisplay.php?s=&f=72&page=1&pp=20&sort=title&order=desc&daysprune=-1


Make sure you read all instructions before entering. It is very hard to win, despite what the newspaper/mag articles will have you believe. I should imagine every little bit of income though could make a difference. It takes an awful lot of work. Don't even attempt to start it without reading the rules/advice (you'll need to know things like 'start a new email and add a signature to save you typing it all out' and 'don't comment on the threads!'. Loads more.


https://forums.moneysavingexpert.com/discussion/4896515/new-compers-please-read-competition-board-useful-links


I don't usually suggest it, but on a relatively cheap property/low income, it may make a difference.

steampowered

You have had fantastic advice from AdrianC. Surely it is better to stay in the flat. Bankruptcy would clear your debts but you'd then be left in the position of being unable to raise another mortgage for some time.

The basic problem with your finances is that have a lot of personal debt. It sounds like you are paying £544 a month on your personal loans and credit card.

Is there any way you could reduce that? For example by doing a balance transfer to move the debt onto a lower interest rate?

Can you also reduce your living expenses to the absolute minimum?

It sounds like the best way forward is to pay off as much of your shared loan as possible to bring the balance down. It is less likely the lender will take action if you are taking action to clear the debt.

Or, you can start building up savings - that you can use with a remortgage to pay off the equity loan once you have enough.

In reality it is difficult for the lender to force a sale so they will only do this as a last resort. Don't feel overly pressured by the lender.

steampowered

spamiad wrote: »

I also approached my current lender who would lend up to 95% of the property value, but only if it paid the property out right.

Don't just speak to your current lender. They may not offer the best terms and rates.

It might be worth speaking to a mortgage broker just to see if you have other options - brokers are usually free as they get paid when you take out a mortgage.

Crashy_Time

spamiad wrote: »

Thanks I was renting, and it was expensive, not expecting that my property wouldn't retain is value in ten years, not make any, but break even would of made me equally happy, I have struggled for years to pay for this flat never missed a payment and gone without sometimes.


It was the right decision for me at the time

Fair enough, the advice to keep the property and make some sort of payment arrangement is probably the way to go then.

wesleyad

Out of interest where do you live that has seen a 25% reduction in house prices in last 10 years? Or was it just vastly overpriced initially?

Val111

@Spamiad
I am just wondering when your original shared equity was due with Phoenix? We too are in a similar situation, only our property value has increased, so their is equity.
Like yourself our original equity was with a house builder, moved to Hampton and a bit like yourself l can’t really recall being told it was moved on to Phoenix.
Long story short our equity due this month, been refused extra borrowing with our bank as we had some financial difficulties a couple of years back due to me studying and a change in my husband working conditions.
I am now waiting on Hamptons IFA getting back to me too see what options we have? I am terrified we are going to lose our home and be unable to purchase another?
I am trying to look at options (trying to look at who best can help us? Whole market IFA) but don’t know where to turn.
I hope things work out for you.

Rosieandjim

Ditto above could you take in a lodger and look for part time work over the weekend. I would do anything not to lose my home.


Also can you spread the cost of your bills over the year so that you pay a fixed amount each week. I think the bank could help you with this. You do need debt counselling advice don't loose your home after you have struggled all this time.


I think more and more people are going to be in this situation as they cant service the debt they have got into.

financegeek

not sure if Spamiad reads this thread still or not, but if i were in the same position i think i'd be prioritising the Phoenix charge over unsecured debts, as this should be a priority. This is assuming there's no other way to increase income e.g. with a lodger as someone else mentioned up thread.

if the unsecured debts cease to be paid (either by entering DMP / defaulting etc) that £500.00 p/m can go towards clearing the Phoenix charge.

This should then be cleared within 4 years, at which point there's only another 2 years until the defaults etc drop off the credit file. in this time they can look to clear these / chuck more money at the first charge mortgage to bring the balance down before remortgaging when the 6 years are up.

I'm sure it's not the only route out of this and professional advice should be sought, but in my view getting rid of that shared ownership loan should be priority number one.

Crashy_Time

wesleyad wrote: »

Out of interest where do you live that has seen a 25% reduction in house prices in last 10 years? Or was it just vastly overpriced initially?

Interesting question.