Negative Equity is Costing You Money
What’s stopping you sorting out your property debt and negative equity problems? Whatever it is, we’ve heard it all before. From not wanting to throw good money after bad, to worrying about what the mortgage company might think.
The truth is, that if you’re persevering with paying a mortgage that is much more than the value of your house, you are already throwing your money away. If your mortgage repayment is much more than the average rent in your area, how does that make sense? And if you’ve got an interest-only mortgage that you can’t repay after the term of the loan, you’re never going to break even. You’ll be left in a big hole the same size and shape as the amount you originally borrowed. In other words, back at square one. Here are some of the reasons we hear every day, and none of them is worth the paper they’re written on. They’ll cost you a fortune.
| It costs money any service worth its salt costs money.
Any service that promises you a result is worth its weight in gold. For a comparatively small fee of £300 (and only when we know enough about your case), we put together a detailed case file that will give you real choices. Choices that we have every confidence will deliver a result. And when we say result, we’re talking about writing off (on average) 90% of your negative equity. Sometimes we get more written-off. All in our fees total around £4,300 – which can be a small fraction of what you owe – and can be paid in instalments. If you think about how much you owe your lender, we save you money. Tens of thousands of pounds in many cases.
| I self-certified on my mortgage
Lots of people did. It was part of the process at that time and actively promoted by brokers. If you feel your income was misrepresented and you have an interest-only mortgage, you may have a strong case for mis-selling. If your income or circumstances have changed (or you’re in negative equity) that’s every reason to ask us to deal with your lender on your behalf.
How is home equity calculated?
Home equity is calculated by subtracting the amount you still owe on your mortgage from the current market value of your home.
Can you have negative equity?
Yes. With standard loans, your home equity will increase over time. With negative-amortizing loans — a loan with monthly payments less than the interest rates — your equity decreases over time as your owed balance increases.
| I don't want to move
You don’t have to sell your house to overcome the issues that come with being in negative equity. Our best advice is often to sell for market value and ask us to get as much of the shortfall as possible written off with the agreement of your lender. But we can also help ina number of ways. We understand that families, in particular, want to stay in the family home. We can advise on alternative solutions that allow you to do that wherever possible.
| I don't want my mortgage company to know I'm letting my home out
We hear from people all the time who have been forced to let their home and so break the terms of their mortgage agreement. It’s not the end of the world. If you’re a reluctant landlord who’s finding that letting your home isn’t the stress-free solution you’d thought it would be, we can still help. The more critical issue for your lender is resolving the debt before it becomes an issue for them.
|I tried talking to my lender, and they said there's nothing they can do
Most lenders will deal with individual borrowers in this way. Our clients tell us all the time that their lender has fobbed them off. We know how difficult the whole process is, so we congratulate them for giving it a go. And then we get down to work, pulling case files, consulting our legal advisers and talking to the people who matter the decision-makers at the bank.
|I'd rather keep paying off my house and have something at the end of it
Which, in an ideal world, is what we all want. But you have to ask if you will have something at the end of it. How far away is that? Will your property be worth what you paid for it? If you’re on an interest-only mortgage, how much will you end up paying for your house? If interest rates go up, can you afford the repayments? How much more difficult will it be to resolve the situation then rather than now? Will hanging in there just cost you more money? Having dealt with hundreds of these kinds of cases, we know that every homeowner is different and every lender is different, so there is no one size fits all approach. We put in the legwork over many months to create the best possible outcome for you, allowing you to draw a line in the sand and get on with your life. Contact us today for a free initial consultation.
|How we've helped previous clients
We’ve helped hundreds of families move on from negative equity and mortgage debt, and we genuinely want to achieve the best possible outcome for every client we work with. That’s why 99% of those who have reviewed our services at reviews.co.uk would recommend Negative Equity NI to others. Here is an independently verified review from a recent customer
We bought our house at a particularly bad time, in April 2007 and it started to lose value straight away.
To make matters worse financially, we had bought on an interest only package that we had been advised would be a good first step – as long as we changed into a different package within two years. We were unable to make this change because the house was no longer worth what we had borrowed for it. So our situation got worse month by month, while the long-term future got increasingly bleak.
We couldn’t see any way out of our situation. When we heard about Negative Equity NI we thought we might as well talk to them, but didn’t expect there was anything that could be done.
Some of what we were told initially seemed too good to be true. I think we might have been anxious about making our situation even worse by putting money into something that might not be all that it seemed. I’m happy to say Tom took the time to follow up with a long conversation with us to explain how and why he had started the business and to deal respectfully with all of our questions and worries.
It seemed like a scary step to stop paying the mortgage. But it was a great relief too, especially when we had an organisation with such experience tell us that they would deal with our lender. We didn’t need to worry about aggressive phone calls or threatening letters anymore, because they would take care of that side of things. We could start to believe that there would be a life beyond the financial mess that we found ourselves in.
Since then Natasha and Lesley have been excellent in taking us through each step of the journey. Our case has been a long process for Negative Equity NI too but they have never lost patience, and never been anything less than totally professional and courteous.
Having gathered and presented our financial facts Lesley managed to negotiate a 90% write off of our debt. We have recently settled with the lender with a single lump sum payment of £14,000.
I would recommend Negative Equity NI to anyone in a similar situation. It was the best money we ever spent to bring them on board, and given the length of time and the amount of input it required from their side, extremely good value for money.
Our thanks to Tom, Natasha, Lesley and the whole team
We understand circumstances change and is at no fault of our clients when they find themselves in a property that has fallen into negative equity. Our local experts are here to help with any questions or concerns you may have. Call us on 028 9018 3223 and get your free face-to-face consultation today!