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How Do You Get Out Of 30K Negative Equity Interest Only When Getting Divorced?
Comments
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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).
BTL mortgages would nearly always be arranged on an interest-only basis. Plus, BTL properties are a business transaction. So, this wont be missold.
BTLs using a mortgage is a higher risk transaction that can lead to you going bankrupt. So, it's not something to enter into lightly. Unfortunately, you are now in a situation where things have not gone right for you and you in a situation that could end up in bankruptcy if you do not have the assets/cash to satisfy the debt. However, the asset/debt situation should form part of the divorce settlement arrangements. So, this is something to discuss with the solicitor.
Forget missale though. It wasnt missold.0 -
For a clean break you will need to sell both properties, settle all outstanding debts and half whatever equity is left - buy somewhere that is more in line with your salary.0
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