I have recently split up with my husband of 4 yrs and have been paying my share of the joint mortgage from our marital home which neither of us now lives in. My husband is now a Full Time student and because I have been paying a mortgage for a home I have not been living in for the past year and trying to cover costs in my new rented accomodation I am in debt with other lenders as well. Neither of us can afford the repayments, we have had the flat on the market for 9 months with no success (recent job losses in local area have affected house market)I am now considering handing the keys back to the mortgage lender and asking them to reposess. My husband is not keen however as he is worried about his future credit rating. I am not bothered about this as I am already falling behind on other debts. Does anyone have any suggestions? We are in Scotland in case this makes any difference in the law.

Thank you in advance.

-- AbbieTait (abbie24t@yahoo.com), September 20, 2001

Answers

Just to let you know, I had a mortgage with the Leeds & Holbeck and was respossessed 2 years ago. In the past couple of months they are using a firm of solicitors (DLA) who are chasing me for the shortfall on the sale. The sale of the property and the MIG covered all the mortgage costs (£46500) but they are now saying they want £4,500 to cover their extortionate costs ie 3% estate agency fees etc, and they do not seem to be giving up easily. I am contesting this and am using this excellant site to help me, but I would say do not give up your home easily, you will be liable for costs and they can rise and rise. Others on the site will give you 'expert' help as I follow it daily ! Good Luck and let me know how you go on with them.

-- Alison Jenkins (topbanana07@hotmail.com), September 21, 2001.

I wouldn't recommend handing the keys in. Can you not move back into the empty property and let the rented property go to reduce your outgoings a bit?

Have you spoken to your lenders for your other outgoings? If you tell them that you're struggling, they should be willing to accept a reduced payment for a while until you get yourself sorted.

If it does come to it, get two surveys done on the mortgaged property as proof of the value. This website should give you a good insight to how Lenders deal with repossessed properties and how they are known to sell them for less than they're actually worth.

-- Bev (Bev100@genie.co.uk), September 21, 2001.