Comments on: Is there any way out of our financial nightmare?

By: Carol B

Carol B — Sun, 14 Mar 2010 00:36:23 +0000

Hi there,

I have the same situation, except mine was 125% together mortgage with northern rock.

I am in negative equity and am currently going through a company which can apparently wipe off the unsecured element of the loan as there is new legislation in place which means that if a company made any errors at all on the credit agreement originally, then under the consumer credit act the debt is void.

They charge 450 quid, but if when they get the credit agreement in from the lender and there are no errors on it they refund 400 of it.

If you are interested go on creditissuesltd.co.uk, I am doing it as its worth a shot!

You wont have any other option if you are in negative equity as the highest mortgage you can get is 95% at the moment.

Believe me I know, Im a mortgage broker!

By: WENDEL HOMES

WENDEL HOMES — Sat, 13 Mar 2010 13:38:51 +0000

Firstly cut up his cards until the eighteen months has been over and done with that should then get him a clear debt record or at least his creditors will see that he has been acting in a proper manner re his debts by paying them back… and you never know by that time this little flurry on the world markets will be a thing of the past and your negative mortgage will become positive one and you will have learned a valuable lesson.
Advice for others is do your own negotiating with your debtors as it is cheaper.

By: Cindy M

Cindy M — Fri, 12 Mar 2010 08:11:02 +0000

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By: Darren from Moneyfacts

Darren from Moneyfacts — Thu, 11 Mar 2010 00:40:08 +0000

You situation is typical of many people who took out the together mortgage or other 125% loans. Everyone assumed property prices would continue to increase, therefore lenders were happy to lend more than the value of the home. Since the onset of the credit crunch, lenders have got rid of their most riskiest mortgages. These include the loans of over 100% and sub-prime (bad credit mortgages).

At the moment, until you can get your mortgage down to at least 95% of the property value, you will not be able to find a new deal.

However, more and more mortgage deals are slowly coming back onto the market, so a lender may offer a 100% mortgage again in the future. Plus base rate is predicted to be cut in the coming months which should reduce the Standard Variable Rate, which you are currently paying.

By: david h

david h — Wed, 10 Mar 2010 10:49:35 +0000

First thing is you and your partner need to manage your money.Common sense really - stop spending money ! save up.
You need to acknowledge that at the moment you do not earn enough money to live the lifestyle you currently are living, let alone to improve your live style and get a larger property.
Something needs to change - can you and your partner get better paid jobs ? can you both get an extra job ?
Their is no easy answer unless you are going to inherit money you will have to work for it.
Your not alone - its a tough world , but you must take responsibility for for debts.

By: BARRY B

BARRY B — Sun, 07 Mar 2010 00:57:13 +0000

I believe that you will have to be patient and tell yourselves that, in time, it will improve. Your aspirations, which are admirable, will have to take a back seat. You can’t make bad decisions and then not have to deal with the consequences. A lot of people are worse off than you, and you are only 25 which is still young property wise.
I don’t think you will be stuck in your one bedroomed flat forever. The market will recover, you will be able to sell, you will have paid off some of your mortgage. But it will take time. Regarding your partner’s credit record. I think the situation would be the same in any event. The credit rating people would take the same view no matter what scheme he entered. From what you say it is better that he can’t get credit as he would probably drag you down again. Sorry if that sounds cruel. It just the way I see it.

By: Peter H

Peter H — Wed, 03 Mar 2010 21:53:01 +0000

Speak to your/ his mum/dad/grand parents/friends and find some one to go 50/50 on a mortgage with you. Decide a suitable pay of for them, I.e. they can either help pay the mortgage and have a percentage of the capital gains or they can just put their name on and after 5 years you pay the x amount when you sell the property. There must be something in it for them.
Bankrupt your partner. Free up his income for you to live on and throw your money into the mortgage. He will be released after 12 months and it will be of his file in 6 years.
Then if you want to move, rent your current property out, change to a buy to let mortgage, and if the market carries on the way it is, you should be able to get 2/3 bedrooms for last years 1 bedroom price.

By: Ernst G

Ernst G — Mon, 01 Mar 2010 19:45:41 +0000

fist of sell the flat, hope you get the money you payed for.
if you do than pay the credit card of. AND CUT IT IN HALF.
Next get a new partner, he is very clearly not ready finical and will drag you down with him
AND NEVER EVER TAKE THE BAD CRADIT ON FROM YOUR PARTNER, HE WILL BE LAUGHING ALL THE WAY TO THE BANK.
HE IS IN THE CLEAR AND YOU HAVE TO PAY FORE IT.
Bite the bullet dump him and than move forward from there.

Good luck.

By: Mike D

Mike D — Mon, 01 Mar 2010 05:11:26 +0000

firstly your not alone, there are many others in this situation.

1 can you move back to one your parents or friends home, and then rent the flat to help with the repayments?

2 if you have the room, look for a boarder.

3 both work an extra job on the weekends, or ask for a pay rise.

4 stop pay tv or any other luxury until you have the credit sorted

hope these sugestions help…

By: Stigma

Stigma — Fri, 26 Feb 2010 07:04:45 +0000

Look on Yell.com for insolvency practitioners. NOT debt advisory services or IVA factories but a qualified IP. Telephone a few, many offer a free initial consultation and a good one will talk you through your options.
IVA’s have a really bad press at the mo because of the recent change in legislation which allows pretty much any numpty to set themselves up as an advisor and then rip you off but a proper IVA is actually a valid and useful insolvency procedure. A tip to watch out for - a decent insolvency practitioner will include a flat fee for an IVA, a Nominee’s fee and a Supervisor’s fee. They will not take a percentage of your contributions. Get good advice!