Help to Buy Loan written off in bankruptcy

coypondboy

Hi there I have been following the crisis hit flat market and a friend of mine's son who took advantage of the help to buy scheme buying a 600k flat in central London handed his keys back to the lender last year and declared bankruptcy and has secured a job in Australia having worked for the NHS.

A similar flat to his was sold to a cash buyer for 300k as had cladding issues at a recent online auction (over 300 apartments in block) so expect his flat to be sold via lender as a repossessed property for even less.

He was not great with money and had debts of 600k (including mortgage and help to buy loan) and has now been discharged with the 600k written off.

How many others will go down this route in the coming years and will this cause a banking crisis?      

MorningcoffeeIV

Nocoypondboy said:

How many others will go down this route in the coming years and will this cause a banking crisis?      

Not many in the larger scheme of things.

And no.

fatbelly

This isn't particularly a new development. People have been getting into trouble with mortgages and declaring bankruptcy for as long as i can remember.