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repayment mortgage, struggling to repay after 10 years, owe 100 000K to bank

(6 Posts)
lilasimpson Mon 13-Jan-14 18:34:55

Hi, i need advice for my friend. She is completely distraught. She is going through a divorce and the mortgage she had taken on with her husband is now ending, that is, after 10 years, they had been paying interests and some money but now they still owe 100 000K. Now that they are no longer together, my friend who lives in the house with her two kids cannot extend the mortgage with the bank or any other bank as her salary is too low. What does she risk? What if her mum is willing to help her and become a guarantor and help her pay some? I do not know much about mortgage so cannot help her. Please could you advise? Thank you

AmIatwat Mon 13-Jan-14 21:03:05

she must contact the bank immediately. most lenders are sympathetic and she can make an offer of payment. This might affect he credit rating, but it will buy her time to sort her finances out and perhaps look for a cheaper house or rented accommodation, I have had to negotiate my mortgage repayments many times and am now in a position to pay off some more capital. Also suggest she sees CAB and get some advice.

Graceparkhill Mon 13-Jan-14 21:06:38

I would suggest speaking to an independent financial advisor who can advise on guarantor mortgages etc.Also get a realistic valuation on the house to see how much equity there is in the property.
Selling up and downsizing / renting may be the best option.

AmIatwat Mon 13-Jan-14 21:15:05

speaking to her lender must be her first port of call, as long as you put them in the picture they will help. They will also send out a 3rd party assessment letter so you can inform them of your income and outgoings.

Mintyy Mon 13-Jan-14 21:20:13

Is it £100,000 or £1 million?

Please clarify.

lilasimpson Wed 15-Jan-14 18:56:56

Hi all , so sorry for the late reply, daughter was ill... 100,000 pounds. I was just wondering if any of you had been in this situation before so she could propose some options to the lender. Thanks for your help!

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