What If I Can’t Pay Off My Interest Only Mortgage
Twenty years ago house prices were so high that many people who wanted to buy a house had no other option but to apply for an interest only mortgage. For some people it was also the best time to invest in a buy-to let property. Low or no deposits were required so most of the house price was mortgaged. Everyone thought prices would continue to rise so this was the best time to get on the property ladder.
As we all know unfortunately house prices then took a severe drop and in many areas of UK (including NI) they are still not back to what they were. Lots of people are finding their initial decision has now left them with an even bigger problem – their house or property is no longer worth what they owe on their mortgage or the new rent they can get isn’t enough to cover their mortgage. For some people who bought multiple properties this can be an even bigger financial problem as many people were relying on this future income to support them in retirement but now they owe so much they can’t even see retirement in their future.
If you are in any of these positions lenders refer to it as negative equity. That’s not a big issue if you can continue to pay your mortgage until prices rise again – but if you are struggling to pay each month or your mortgage period is ending you might be getting pretty worried about your options and unfortunately not all lenders tell you that you have options.
If you are in that position our team are here to help. We specialise in helping people work out what is the best solution to help you out of your current position. That could include:
• If you want to keep your property re-negotiating your mortgage to get a better interest rate which is more affordable or helps you to start paying back off your loan
• If you would prefer not to keep your property negotiating with your bank or building society on your behalf to help you write-off some of the debt if that’s the best solution. We have helped hundreds of people in this position and we have achieved a debt write-off on 96.6% of our previous cases.
Whatever your circumstances we are here to help and our detailed case review service makes sure that we put you first and make sure our suggestions are suitable for your circumstances. Just give us a call on 02890 183223 and let us help you take steps to improving your financial position.