Mortgage Options Post Repossession

mr36 · 26 January 2020 at 8:48AM

Hello All,

Wondering if anyone can help.

Situation is that my property was repossessed back in Oct 2010 where I owed over 140k to Northern Rock. I believe they sold it for around 80k leaving a shortfall of 60k but this is a wild guess.

As I have been living in rented accommodation since then, I have not received no letter from NR regarding payment of the shortfall. Maybe they do not know where I live even though on the electoral register. My questions are :-

1, Why have they not contacted me ? Have they lost my files or wrote me off as a bad debt ?
2. Would Cerberus/TSB be contacting me since NR asset management was sold to them in November 2015 and if so why haven't they ?
3. My recent and very good credit file(s) has no record of the shortfall debt so does that mean its written off as a bad debt ?
5. Is it true they can still pursue me for 12 years since the property was sold ?
6. I am thinking of applying for a mortgage for a property i have seen so shall I mention the above to the mortgage broker(s) or just mention I am a first time buyer ?
7. What options do I have to get back on the property ladder ?

I have no assets whatsover but 10k for a deposit on a small 1 or 2 bedroom house. Please help.

Thank You

enthusiasticsaver · 26 January 2020 at 10:24AM

I was under the impression that they have to write to you within 6 years but if they don't have your address that is why they have not contacted you. It is your responsibility to tell them where you are as you still owe them money.

Just having a clear file does not mean it has been written off and it may come up on any application you make.

Telling them you are a first time buyer is fraud.

The options you have are to contact Cerberus/TSB yourself and find out the position on your previous mortgage then contact a specialist mortgage broker who knows lenders who will lend to those who have gone through repossessions previously.

csgohan4 · 26 January 2020 at 10:28AM

OP have you contacted your old lender to see what the situation is? If not you will find it will hurt you when you apply for a mortgage

not declaring these things is fraud and is frowned upon and you may end up on the fraud register

silvercar · 26 January 2020 at 10:49AM

6. I am thinking of applying for a mortgage for a property i have seen so shall I mention the above to the mortgage broker(s) or just mention I am a first time buyer ?

Your broker acts for you, so needs all the facts. You tell the broker that you had a property repossessed in 2010.
(Think about it, your broker needs to know to avoid the lender that you owe money to and any lender who won't give a mortgage to anyone who has had a repossession in the past.)

5. Is it true they can still pursue me for 12 years since the property was sold ?

Yes. So you could keep quiet for another 3 years. I suspect that near the time limit they will make an effort to contact you.

yksi · 26 January 2020 at 11:13AM

Somehow I doubt that the intention was fraud. Many soft searches only give you the options of "first time buyer" or "purchase another home" (or other similar things) and if you don't currently own a house, it's easy to think that the first one fits better, since the new place will be the only house you own. Or they make life difficult because if you select the second option, it asks for your equity... which you don't have.

The correct option seems to be "purchase another home" or "move to a new home" even if you don't currently own anything... it only behaves correctly in the calculators that way for some lenders.

enthusiasticsaver · 26 January 2020 at 11:25AM

yksi wrote: »

Somehow I doubt that the intention was fraud. Many soft searches only give you the options of "first time buyer" or "purchase another home" (or other similar things) and if you don't currently own a house, it's easy to think that the first one fits better, since the new place will be the only house you own. Or they make life difficult because if you select the second option, it asks for your equity... which you don't have.

The correct option seems to be "purchase another home" or "move to a new home" even if you don't currently own anything... it only behaves correctly in the calculators that way for some lenders.

Regardless of the intention telling a mortgage lender you are a first time buyer when you are not is committing fraud. If your situation does not fall into the usual scenarios using calculators is not an option. Just speak to the lender. You will need a broker.

Mortgage Options Post Repossession

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