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cl1
Starting Member
2 Posts |
 Posted - 11 March 2009 : 10:17:50
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Hi, Just want a bit of guidance really. We are currently 2.5 years into an IVA paying 850 a month (135000 total debt).
Looks like hubby will be made redundant (again) - I will ask for a payment break for a couple of months in the hope of new employment but if all else fails it will have to be bankruptcy. My question is, we are in negative equity with house price falls etc and could get someone to buy the beneficial interest, however the mortgage payment is £1200 per month, would we be allowed to continue paying this or would it be deemed too high and be forced to sell even at a loss of around £30k?
There are 2 of us and a daughter at university (still at home) |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 11 March 2009 : 10:26:14
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Hello there and welcome to the forum, It is very rare for the OR to want an individual to sell there home when it is in negative equity, unless of course the housing costs were ridiculously high and someone for example on their own in a 4 bed detached...it would make sense to doen size in such circumstances and reduce outgoings (the 'loss' you state in such circumstances the negative equity/shortfall would just become a debt in the bankruptcy. Although you feel your housing costs at £1200 are high, they are not in the whole scheme of things the mortgage payment is average, so i do not think you have any worries about losing your home
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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pix1
Average Member
689 Posts |
Posted - 11 March 2009 : 12:51:37
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| Shocking that £1200 a month is average for a mortgage payment. Melanie, did you start in insolvency when you were about 10? Going by your photo and having 28 years experience looks like you must have been a nipper when you started. |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 11 March 2009 : 13:41:17
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That photo was taken about 3 months ago, and come May I am the ripe age of 46!! I have 2 boys age 19 & 16 and at times like all mothers of teenage boys I feel far older than my present age!! thanks for the compliment though! I sadly started in the OR's a month before I was 18.. in 1981
With regard to the mortgage payment £1200 per month is not a massive mortgage payment these days and does not necessarily mean a large mortgage as they may be tied into a high percentage deal. I was dealing with a client this morning who was quite happy in October to secure a fixed deal for 5 years, though is now not so happy as the fixed rate of interest is 6.89%..which when you look at the base rate is MASSIVE, i would be crying if i was him!
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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cl1
Starting Member
2 Posts |
Posted - 11 March 2009 : 21:49:02
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Thanks for your guidance Melanie, just reduces the anxiety a little!
Hopefully hubby can get some work that will keep the iva intact, we would rather not BR if possible just that he was made redundant 3 years ago and this resulted in IVA due to income being reduced by half!
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pix1
Average Member
689 Posts |
Posted - 12 March 2009 : 11:17:05
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Melanie,
The thing that really trigger our bankruptcy was when it dawned on us that a 7.2% fixed rate 2 year deal at £1425 per month interest only was a big mistake. You can easily get obsessed with owning a house when you are living in a 1 bedroom flat with a child (and another child needing to join you) and then get into a ridiculous deal. Whats more, the mortgage broker did not tell us that we were signing up to something where it would revert to a 8.3% variable rate after the two years with no option to extend a 2 year fixed deal. What with all the other debts BR became the only way out.
Only thing was I thought we were unsual in having that large a monthly payment but I suppose it is some comfort that £1200 or so is, or was, typical. |
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Hi, Just want a bit of guidance really.
