our mortgage is rising & rising.we have a high interest mortgage & for what our house is worth its extortion.we want to give the house up to the mortgage company & rent private.good or bad idea? has anyone done this before?
2007-02-12 04:36:09 · 6 answers · asked by debbie b 2 in Business & Finance ➔ Renting & Real Estate
we are in an IVA so we cant sell for a profit & the area we live has got run down & no matter what improvements we've done the value of our house isnt going up.our house is worth £60000 & we pay £500 a month.i really begrudge paying that amount.
2007-02-13 01:09:10 · update #1
Whatever you do, don't just give up and hand it over to your mortgage company. Obviously their first duty is to get back what they have lent you.It's too complicated to explain the full process but trust me when the lender sells the smart buyers know the score and drive a hard bargain often very little being left from the sale price for you yourself.
Remember this also, if the sale doesn't cover what you owe you could still be liable for the shortfall as a remaining debt you'll be liable for!
Remember also your future credit rating. Visit an independent mortgage adviser, I emphasise independent, see if you can get a better loan on your house. Their advice is usually free.
Once you leave the housing ladder it will seem even harder than before to get back on it. If possible tough it out, good luck but whatever happens, if at all possible don't just throw in the keys to your lender.
PROMISE YOURSELVES YOU WILL SEE THAT INDEPENDENT ADVISER BEFORE YOU THROW IN THE TOWEL.
2007-02-12 06:46:36 · answer #1 · answered by on thin ice 5 · 1⤊ 0⤋
In our area rent costs more than mortgage! £400 a month mortgage versus £550 a month rent.
Plus in our own home we have the freedom to keep pets and not be bullied and have our privacy invaded by some greedy landlord who puts the rent up every 6 months.
I'd sooner be homeless than ever rent from a private landlord again - many of them are sharks. Our last one used to let himself into our house while we were at work and then ring us up and complain the place was "messy" blah de blah. When reminded him that by law he had to give 24 hours notice of any visit he just yelled "Its my ******* house I come and go as I please".
A lot of money went missing from our house too and I know it was him who took it.
He left us without heating or hot water in the middle of December and he then told us to move out so he could move in his rellies from Pakistan.
We got a mortgage (even though we had to get a high interest one as we don't have a good credit score) and I swore I'd never let a landlord rule my life agian. How they can charge £550 pcm for a property that the council or a housing association would charge £240 pcm for God only knows. So much for Capitalism!! There should be more council and social housing available so these leeches don't get the chance to take advantage of people.
Debbie - one word of advice - have you changed your mortgage over from repayment to interest only? We did this and the monthly payments dropped from £463 pcm to £400 pcm. You should be able to do this as we have a high interest mortgage too but they let us do it.
2007-02-13 08:42:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋
i would personally avoid this. try finding a new mortgage deal with better rates, and don't be afraid of keep moving your mortgage.
if there are other financial reasons then it could be worth while, and if you make no money from the house and are on a low income then living in rented property could mean you get financial help with rent whereas you'd be unlikely to get this help living in your own home.
but at the end of the day privately renting does not give you any kind of security and can be unsettling for children and stressful for adults.
if i were you i would discuss this with someone from citizen's advice bureau, and then carefully weigh up all your options. to find you local CAB use this link http://www.adviceguide.org.uk/n6w/index plus you can also get advice over the phone if you are unable to get onto bureau, and many bureaux now offer email advice for non urgent queries.
2007-02-12 16:12:16 · answer #3 · answered by just trying to make a difference 5 · 0⤊ 0⤋
There are organisations that will buy your house and rent it back to you. You get a rubbish valuation well below market value but if you want to stay put it's an option.
2007-02-12 12:44:51 · answer #4 · answered by Del Piero 10 7 · 0⤊ 0⤋
Sell instead then you have no more responsibility for a house you cant live in.
2007-02-12 12:39:27 · answer #5 · answered by elaeblue 7 · 0⤊ 0⤋
Definitely sell it... don't do the foreclosure!
2007-02-12 12:41:41 · answer #6 · answered by Art 4 · 1⤊ 0⤋