Negative equity in Northern Ireland-Ulsterbank

Oli80

Hi all,
Hoping to get some advice from you all:
Quick summary:-Bought house in Belfast during the boom- now its in 30k negative equity with Ulster bank. 
Have spoken to negative equity company and they are suggesting  an assisted voluntary sale with a negotiated settlement- (With up to a nice 5k commission for them)

As they have the vested interest in this option i'd like to hear other experiences/options and as I'd prefer to negotiate with the bank myself and cut out the middle man and not give them up to 5k for the 'negotation' what they best tactic is.

The agency also talked about credit ratings and assisted voluntary sale v voluntary sale- I want to limit credit damage

I don't need the house anymore and have no desire to rent it out but not against taking part of a loan out to make up some of the negative equity costs.

I hear the Ulster bank have been difficult and inflexible in this topic so any tactics welcomed and much appreciated.
Thanks

csgohan4

have you spoken to the bank? it is in their interest to settle this as well, however using a third party, who do you think will suffer the most? You

Oli80

csgohan4 said:

have you spoken to the bank? it is in their interest to settle this as well, however using a third party, who do you think will suffer the most? You

Yeah spoke to them previously and their attitude was essentially- tough luck- that the house is in negative equity -pay of the negative equity and we'll talk then! (Understand its my debt)
So yeah pretty inflexible in any discussions so far and I guess they have already probably written the debt off so its a bonus if we continue to pay it. 
Just Handing the keys back isnt really an option 

Thrugelmir

Are you progressively reducing the capital balance owed on the mortgage? 

Oli80

Yeah its a capital and interest mortgage so it is coming down but it will be years and years b4 its reduced to being in positive equity and I don't want to remain or rent the house.  

MovingForwards

Are you making any overpayments on the mortgage or just relying on the normal monthly payment of capital and interest to pay it down?

csgohan4

sadly even if you sell the house, the deficit is something you will still have to make up and won't be able to avoid even if you give the keys back

Thrugelmir

Oli80 said:

Yeah its a capital and interest mortgage so it is coming down but it will be years and years b4 its reduced to being in positive equity and I don't want to remain or rent the house.  

Only way of improving the situation is to make overpayments and reduce the mortgage balance quicker. Any early exit will leave you with a ball and chain.

Oli80

For me I accept its my debt and ulster bank owe me nothing. Posting more for advice on possibly negotiating with the bank a settlement and best tactic for this. Ie with agreement from them I sell house- leaving the negative equity remaining and finding some agreement to reduce the debt or negotiate a settlement on it