Ulster Bank - assisted voluntary sale?

in N. Ireland
2 replies 1.7K views
I would be grateful for any experience of assisted voluntary sales in Northern Ireland, particularly with Ulster Bank or other local lenders.

I borrowed £120,000 from Ulster Bank to purchase a two bed terraced house in east Belfast in September 2006. 100% loan with no repayment vehicle and interest only over 25 year term.

Current market value estimated at £50k leaving £70k negative equity.

The mortgage is still interest only at this stage. Whilst I am now in a better paid job with some other unsecured debts close to being paid off, and could therefore possibly afford to switch to repayment and maybe even over pay a little, I do not see that house prices will ever return in that particular area to anywhere near 2006 level. Therefore I expect a significant shortfall at the end of the mortgage term with no means of repayment.

I am not living in the property at present and have no wish to hold on to it in future. I am keen to get married and start a family in the next 1-2 years, and the house is unsuitable. Future plans are on hold whilst I try to deal with this negative equity situation.

I have recently had some advice from a negative equity management company. From my initial consultation I was led to believe that an assisted voluntary sale followed by a negotiated settlement was a possibility, but am now being told Ulster Bank would not consider this option and it would have to be a volunteered surrender, which appears to be not that different from a repossession. The management company would charge a £4000 fee for the settlement negotiations which I don't think can be justified.

I am now considering negotiating with the bank myself and wonder if anyone had done this? Is it absolutely the case that Ulster Bank will not consider a voluntary sale?

All help very much appreciated.


This discussion has been closed.
Latest News and Guides

Cyber Monday deals

Here’s what the Deals Team have spotted

MSE Deal

How to find cheap PCR tests

The rule change comes into force tomorrow

MSE Guide