I don’t know what to do

Scotsgirl74

Do you mean any shortfall of the mortgage company sell My flat will be a non priority debt?

Are we able to approach the bank to see about removing my name from the mortgage on our home in case anything should happen in the future?

Jonathan_Kelvin

Scotsgirl74 wrote: »

Our mortgage in the house is now smaller than the flat. We would prefer to stay where we are as we were helped with the deposit. We would never be able to save that again

Prefer doesn’t really work as a deciding factor at this point. You can’t simply hand the keys back on one place and walk away without serious repercussions.

What sort of wage are you on? Can you and your partner (if you have one) not find a way to increase your income, and cut down your spending, and then pay down the mortgage on the rental to the point that you are out of negative equity?

Scotsgirl74

Our spending is cut down to as little as possible as it is. I have been trying to find a weekend job to no avail. We can’t afford to make the mortgage payments. They are £387 a month as it is. There is a shortfall at the minute of around £22,000. We are a working family with an income of £49k per year. We can’t afford to pay 2 mortgages

Scotsgirl74

Plus the block of flats are now all rented out to DSS. I moved out as there were drug dealers above me and it wasn’t a suitable environment for my children hence why I would prefer not to move back there

Scotsgirl74

Just an update. I’ve just spoken to mortgage company. Need to call back on Monday to speak to possessions department about possible selling flat for less than is owed and coming to an arrangement about the shortfall

fatbelly

Scotsgirl74 wrote: »

Do you mean any shortfall of the mortgage company sell My flat will be a non priority debt?

Yes. On the other thread, Sourcrates added that these debts are the least aggressively pursued, as people with mortgage shortfalls are often in rented accommodation and considering bankruptcy.

Scotsgirl74 wrote: »

Are we able to approach the bank to see about removing my name from the mortgage on our home in case anything should happen in the future?

Not worth doing and wouldn't work anyway. You are worrying unnecessarily

Scotsgirl74 wrote: »

Just an update. I’ve just spoken to mortgage company. Need to call back on Monday to speak to possessions department about possible selling flat for less than is owed and coming to an arrangement about the shortfall

That's the best option. You will get a better price by marketing it yourself than they will through a repossession or you just handing them back the keys. It's what I was referring to earlier about minimising the debt. But you need their agreement not to block a sale that will not clear the mortgage.

Unicorn_cottage

Have you had the flat valued recently ?

Scotsgirl74

Getting valued next week

warby68

Scotsgirl74 wrote: »

Our spending is cut down to as little as possible as it is. I have been trying to find a weekend job to no avail. We can’t afford to make the mortgage payments. They are £387 a month as it is. There is a shortfall at the minute of around £22,000. We are a working family with an income of £49k per year. We can’t afford to pay 2 mortgages

£49k isn't a low income and your residential mortgage is not large at less than £72k.

I think your SoA is probably needed for people to give you well-informed advice.

Working with the other mortgage lender will be better than handing back the keys but they will have to perceive your financial circumstances in more or less the same way as you do.

MissMollyJ

warby68 wrote: »

£49k isn't a low income and your residential mortgage is not large at less than £72k.

I think your SoA is probably needed for people to give you well-informed advice.

Working with the other mortgage lender will be better than handing back the keys but they will have to perceive your financial circumstances in more or less the same way as you do.

Agreed! Many people would dearly love to have an income of £49k and mortgage of £72k! The debts being talked about should be easily serviced and paid off with that level of income and outgoings on the face of it.

OP, do consider working oit your SOA and posting it for advice - I would say this is manageable and not to panic x