Mortgage Shortfall Help

A21A21 Forumite
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I took out a mortgage in 2005 for a buy to let through a broker I was only 18 at the time and took poor advice from the agents, broker, family etc didn't really understand the process and was essentially set up to fail. Soon after I took my mort out the market crashed and the property went into negative equity. I couldn't afford to pay the mortgage because service charges were so high that I went into arrears. I was only working part time so I am not sure how I managed to be allowed to borrow approx £170000. Fast forward the property went into receivership and eventually sold at a loss many years later and has a £44k shortfall. I genuinely believe I was given a mortgage I couldn't afford but I knew no better at the time. Does anyone know if I can do anything about potentially being sold the mortgage when I definitely could not afford it? Secondly anyone have a similar experience and any resolution for the shortfall - I simply cannot afford to pay it and even if I pay a small amount off each month I'll be paying it for years and years to come. Thanks in advance for any help. 
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  • MEM62MEM62 Forumite
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    The affordability for a BTL mortgage will take the rental income into account.  If the property was let why was the mortgage unaffordable? The fact that the property fell into negative equity would have no impact on your repayments.  
  • A21A21 Forumite
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    Because their were huge service charges which I did not understand at the time which took it out of my affordability straight away and also the rent ended up being not enough to meet the monthly mortgage payments. By the time the property was sold by the receivers my arrears were almost paid off but they sold it at a huge shortfall hence the debt now. I am at a loss as to whats best to do, even if I offer to make a monthly payment with my circumstances and income I will be paying it off for the rest of my years.
  • JCS1JCS1 Forumite
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    You mention receivers, did you go bankrupt at the time?
  • A21A21 Forumite
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    No the building society repossessed the property and gave it to receivers to manage until sold. 
  • gizmo111gizmo111 Forumite
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    The mortgage lending was a lot more relaxed in 2005, self certification was a major factor in lending, so highly unlikely you will have any redress on being affordability. How long have you been paying the shortfall? 
    Mama read so much about the dangers of drinking alcohol and eating chocolate that she immediately gave up reading.
  • A21A21 Forumite
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    I haven't paid anything yet as my financial situation was so bad previously they had left me without contact but now almost 5 years later they are chasing me strongly.
  • fatbellyfatbelly Forumite
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    National Debtline have a good factsheet.

    https://nationaldebtline.org/fact-sheet-library/mortgage-shortfalls-ew/

    Technically they have 12 years to start court action, though it's rare on this kind of debt.

    You could continue to ignore.

    You could ask for a write-off (unlikely)

    You could offer a small lump sum in full settlement

    You could consider insolvency

    The options are in the factsheet, which also links to standard letters
  • A21A21 Forumite
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    fatbelly said:
    National Debtline have a good factsheet.


    Technically they have 12 years to start court action, though it's rare on this kind of debt.

    You could continue to ignore.

    You could ask for a write-off (unlikely)

    You could offer a small lump sum in full settlement

    You could consider insolvency

    The options are in the factsheet, which also links to standard letters
    Thank you for this, still not sure what route to take, in the latest letter they said they will send out field agents for a income expenditure assessment but I fear this will mean they will add charges to my shortfall as the listed agents are hundreds of miles away.
  • fatbellyfatbelly Forumite
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    Field agents have no right to do anything so however you play this, you can ignore them if they do turn up..

    I wouldn't worry about charges even if threatened. It's not going to make any significant difference to the debt
  • MEM62MEM62 Forumite
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    A21 said:
    fatbelly said:
    National Debtline have a good factsheet.


    Technically they have 12 years to start court action, though it's rare on this kind of debt.

    You could continue to ignore.

    You could ask for a write-off (unlikely)

    You could offer a small lump sum in full settlement

    You could consider insolvency

    The options are in the factsheet, which also links to standard letters
    Thank you for this, still not sure what route to take, in the latest letter they said they will send out field agents for a income expenditure assessment but I fear this will mean they will add charges to my shortfall as the listed agents are hundreds of miles away.
    It's a threat designed to pressure you.  No way do they need to send out 'agents' to conduct a process that could be done over the phone.   
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