Hi all
Not sure if this should be here or in bankruptcy.
We bought our house in the height of the market, just before the crash.
We paid £175k for the house on a 100% interest only mortgage.
We just had our house valued and it is worth £89k.
When we bought our mortgage was £850 a month when interest rates were 5.75%.
It dropped as the interest rate subsequently dropped but since it dropped to 0.5% the bank has increased our rate a number of times, so now on an interest only mortgage we are paying £850 again!
We are massively struggling to pay bills each month. We have credit card debt from having to use it to afford oil and diesel essentials. We are even struggling to pay this and have missed payments.
Clearly we can't switch mortgages and can't sell.
Does anyone have any advice? I'm not even clear if bankruptcy is an option as we are still massively in negative equity!
Any help appreciated
Not sure if this should be here or in bankruptcy.
We bought our house in the height of the market, just before the crash.
We paid £175k for the house on a 100% interest only mortgage.
We just had our house valued and it is worth £89k.
When we bought our mortgage was £850 a month when interest rates were 5.75%.
It dropped as the interest rate subsequently dropped but since it dropped to 0.5% the bank has increased our rate a number of times, so now on an interest only mortgage we are paying £850 again!
We are massively struggling to pay bills each month. We have credit card debt from having to use it to afford oil and diesel essentials. We are even struggling to pay this and have missed payments.
Clearly we can't switch mortgages and can't sell.
Does anyone have any advice? I'm not even clear if bankruptcy is an option as we are still massively in negative equity!
Any help appreciated