Advice on voluntary repossession

monetxchange

I agree with all the above comments. The hard truth is you're looking for an easy quick way out - of which voluntary possession is neither. It sounds like you're pretty determined to do it despite all advice pointing the other way, but please at least take a step back and speak to Stepchange again re: your options.

Like Ryan said, the mortgage isn't the issue here, it's your spending and wanting a lifestyle your income doesn't allow. Even if you did go through with this and went into a rental, you wouldn't be treating yourselves and going on nice holidays any time soon. You'd still have low income and huge debt and spending issues and would be throwing money away on rent. Instead try looking at what you can do to increase your income and get a hold of your budget. 

Look, I get it - I've lived in a place I really don't like (and has also had huge expensive problems) for three years, but forced myself to stay there so I could get the deposit saved up PLUS enough for all house stuff I'd need to buy. There's no point going from one debt situation to another. I also rented for many years and it can honestly be a nightmare - landlords selling at the drop of a hat, dragging their feet for months on end getting essential repairs done, expecting huge deposits and rent in advance (that need to be saved up before you can move and take ages to come back from your last rental), then stinging you for random things on the check out for no apparent reason (I've told my £80 for a screw missing from a cheap chair story on here many times). Could you guarantee keeping a new build house pristine with two little ones running around?

I'm really not trying to get at you, just hoping you'll step back and take a breath before doing anything rash. Most of us on here have been in the kind of desperate situation you're in and really do know what they're talking about when they give advice.

Smiddy20

Hi inappropriate all
the comments even if its not things i want to here.
The problem
i have is apart from this  plan and having a fresh start.
i cant seen me ever getting rid of this house
especially with low income and all this debt.

IrishSean

Why would selling your house trash your credit rating?

Why not do a (pun alert) halfway house? At least you'll have a definite date to leave without doing something extreme.

Put a dmp in place, drive unsecured payments to minimum, continue to pay down the mortgage & drop your price accordingly. Even go with an estate agent who could advise on 'prepping for sale'. 2 of the 3 I had round to value did that without being asked 😊.. paint here, move that, clear the garden, its an extra room, etc etc. Might not be what you want to hear or do with your weekends but its a means to an end & as sourcrates said it keeps you in control of the situation.

Check with citizens advice or use an online calc to make sure you're receiving full benefit entitlement; have you included child benefit and tax credits in your SOA? Every penny counts

I'll say again, you can't bank on securing one of those rentals as its soon to be, very much a landlords' market...

sharpe106

No point worrying about your credit rating, whatever you do it is going to be trashed, you are 40K in debt and can't afford to pay it back. There is no way to save your credit rating. All you can do now is what is best for you. As others have said talk to stepchange. 

IrishSean

The house value & mortgage is very confusing; its worth 150k & your mortgage is £139k. How long have you had mortgage? What sort of deposit did you put down? Have you remortgaged? 

I'm asking as your loan to value seems very high given your salary; did you or your wife's earnings drop?

What i'm getting at is if you got help with deposit were you hoping to pay that back? If deposit was more than 10k & you've had house a few years surely it's worth more than £150k? I'd normally say don't 'give it away' in terms of sale price but don't actually give it away as you'll still be liable for the mortgage shortfall

Smiddy20

Errr
bought for 154 30 months ago  owe 139 i put around 10k a think it was down.
house is worth  below 140 cos nobody is willing to pay  140k  house only worth as much as somone is willing to pay for it, i got screwed over when i bought it.

I ment credit will be trashed from
next month when i cant meet my debt payments.
The short fall could 10 20 30k a don't think it matters if going bankcrupt from what I've read

sharpe106

You need to talk to step change again before you do anything else. Think we have pretty much gone to the limit of the advice that can be given on here. You need to seek professional assistance. and step change is a good a place to start as any. 

enthusiasticsaver

I agree that the advice we are giving here is not what you want to hear.  No one is recommending voluntary repossession or bankruptcy but that seems to be what you are leaning towards.  Renting whilst bankrupt is difficult and while you say you intend to do this before handing your keys back it will be a bit of a knife edge while you wait to see if you have been accepted when they credit score your application.  This will hang round your neck for minimum 6 years so it is certainly not a quick fix and you will have to live within your means as you will not be eligible for any credit.  Even getting a mobile phone contract will be difficult if not impossible.  I would stress this is not a quick and easy fix and while I sympathise that you are not happy in your home it may be a question of  jumping out of the frying pan and into the fire if you give up the security of being an owner/occupier and move into rented accommodation with a bankruptcy order round your neck. You said you had spoken to stepchange and they have confirmed what you have been told here. I hope whatever you decide to do you manage to sort something out which makes you and your family a bit happier. 

Smiddy20

Thank you
it is a really hard desion been thinking it through for last month or so like

[Deleted User]

Read through this thread of yours, every day, and listen to yourself, you're telling us that because life is hard at the moment you want to bail; you won't get much sympathy.

There are dozens of people posting, every week, about similar situations and it would enlighten you to read theirs too, it will surprise you what sensible advice and knuckling down to your responsibilities and obligations can achieve.

In a few years you would be able to look back and give yourself a pat on the back for fighting through a horrible situation when you could have just run away from it all and lose your self respect.

Pride and self respect are everything.