Negative equity and end of mortgage term?

Negative equity and end of mortgage term?

11:14 AM, 19th December 2016, About 5 years ago 22

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I have 2 properties both in negative equity to the tune of about £30K each on interest only mortgages. They are tenanted and mortgage payments have always been paid.negative equity

The mortgage term ends this summer and cannot be extended. I have no assets at all having lost everything in the credit crunch and cannot see any way out of this other than be the mortgage company repossessing.

Does anyone have any advice either on a creative way out of this, or on what happens when BTL properties are repossessed?

Many thanks



by Neil Robb

18:03 PM, 24th December 2016, About 5 years ago

Hi Jane

The are company's out the like Bell and Co In Belfast who help negotiate with lenders and try strike a deal with this kind of situation. Look up their web site. I think the guys name is Terry Bell. I know they do work all over the UK Not just Northern Ireland.
I know he has helped a few people I know. Sorry Mark If this is not allowed but Jane is in a bad place.

by H B

9:26 AM, 26th December 2016, About 5 years ago

Sorry to hear about your predicament. I really can't see any obvious way out of this. MX will go for the properties and will want the outstanding.

The big question is whether your main residence is sold as well. If there is very little equity in it, they not bother, but you would be lucky. As long as you do not default on this mortgage I think it is hard to be repossessed.

If you have any assets that can be easily repossessed, it would be worth disposing of them now and keeping the readies in cash.

If you do lose your main residence too, bankruptcy might make it harder to get a new tenancy so if this looks likely, talk to your Local Authority early. Also, this site might be able to put you in touch with a great local landlord who would be able to accommodate you. .

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