How Do You Get Out Of 30K Negative Equity Interest Only When Getting Divorced?

Sianbr

Hello,

I'm in a very strange situation as getting divorced. Purchased in 2007! for 110K and it's now worth less than 80K!

Is there anything I can do with this miss sold interest only mortgages thing?

Thanks,
Sianbr

davidmcn

In what way was it "missold"?

SonOf

Is there anything I can do with this miss sold interest only mortgages thing?

What missold interest-only thing?

Interest only mortgage complaints have one of the lowest success rates of any type of financial complaint. So, it isn't really fair to call them a "thing".

The main reasons for failure are
1 - Mortgages were only regulated from October 2004.
2 - most banks did not give advice until 2014. So, you cannot complain about advice not given on non-advised sales.
3 - Interest only was considered a valid product until the credit crunch.

There are some successful complaints regarding interest only but you haven't given us any information go to go on as to why you think it may apply to you.

csgohan4

you mean mis bought.


You wouldn't be putting a post on here if you had 30k profit would you?


Seems you made a decision to get a mortgage under which if you applied one today you wouldn't get one due to the affordability criteria.

Caz3121

Sianbr wrote: »

Purchased in 2007! for 110K and it's now worth less than 80K!

what were your plans for paying the mortgage balance? endowment policy or other savings? selling?
is one party looking to stay in the property?

RelievedSheff

I am intrigued where abouts in the country you are for your property to be worth so much less than it was in 2007!

getmore4less

RelievedSheff wrote: »

I am intrigued where abouts in the country you are for your property to be worth so much less than it was in 2007!

NI often features in negative equity threads.

Sianbr

Thanks for the responses. Hope its OK to reply covering all the points people have made...

The property is in Stafford (ex MOD house). It's a maisonette with a flat roof so not very popular property to buy. The property was purchased as a buy to let (so a 2nd property).

No you are right if there was 30K profit I wouldn't be posting here.

Missold in what way... I'm not sure, I guess I should have said under what curcumstances whould a interest only mortgage be miss sold.

Plans for repayment were to sell from an increased property value!

I'm trying to find a solution to create a clean brake with my ex, sell the buy to let and stay in the family home but I need close to 200K to refinace and I only earn 30K.

Thank you,

csgohan4

downsizing/selling is not always going to give guaranteed returns, that is the nature of the property market. It can go down as well as up, that was the risk we all took when we signed on the dotted line.

getmore4less

Sianbr wrote: »

......
The property was purchased as a buy to let (so a 2nd property).
.........
Missold in what way... I'm not sure, I guess I should have said under what curcumstances whould a interest only mortgage be miss sold.

Plans for repayment were to sell from an increased property value!
.......

Not on a BTL purchase which is a business transaction.

getmore4less

Is your BTL business making any money?

What have you been doing with it.

How much equity in your main place.

could you sell that and move into the currently let property?
(would need refinancing)