Helping With Mortgage Debt Problems
| Who do you turn to if your mortgage debt is piling up?
With staff working on over 300 clients in different stages of their case at any one time, we at Negative Equity NI are continually striving to do the best for those who are struggling with mortgage debt. Since the start of 2016 we’ve written off £1million in personal property debt for our clients.
A total of £1million written off for 15 cases across NI and the mainland. The average write off is £66.6k, which equals almost an 80% write off for our average client. All cases and outcomes are based on varying factors such as affordability and change in circumstance but our highest write off so far this year was a whopping 96% for a client with a Santander mortgage meaning she only paid £2,200 of an outstanding negative equity balance of £61,781. Now that’s something to boast about!
| So, What is Negative Equity?
Negative equity means your home is worth less than the mortgage currently still owed on the property. In other words – say you bought the house for £150,000 in 2008 and it is now in 2016 only valued at £100,000, you would be in £50,000 of negative equity. If you were to sell your house for £100,000 you would still owe the bank £50,000.
Sound scary? You’re not alone. Currently some 41% of households in Northern Ireland are affected by negative equity. That’s the highest percentage for any region in the UK with some 68,000 Northern Ireland households caught in the trap.
Perhaps you bought at the height of the boom and now it is time to move to a larger property due to an expanding family. It could be that your work circumstances have changed, leaving mortgage repayments more of a struggle. Maybe you have divorced or are in the process of divorcing, meaning you wish to sell the property to move on. Negative equity doesn’t solely apply to single properties either some bought a second property at the height of the boom believing it to be an excellent investment, rather than the drain it is now. On top of these woes, many have an interest only mortgage, meaning they are effectively renting the property off the bank. But what happens when the interest rates rise? Or the term comes to an end and all the capital is owed on the house?
What Can You Do?
Regardless of your circumstance we can offer help. A free no obligation consultation is available in our Belfast based office at Mount Charles to discuss your mortgage debt problems and we can take it from there.
| Larne Couple, NRAM Mortgage in £66,000 Negative Equity
We’ve recently helped a couple from Larne with an NRAM mortgage who were in £66,000 of negative equity – we were able to negotiate a 90% write off.
“We approached Negative Equity NI due to a change in our personal circumstances.
We unfortunately had bought our property at the height of the boom, and subsequently were heavily in negative equity, which meant that we were unable to switch our mortgage to a better deal, or sell the property in the usual manner.The service we received was first class, Natasha (case manager) kept us up to date with all the developments & through negotiations with our lender, secured a write off of the negative equity on the property, with a settlement of 10%.I would highly recommend this company, to anyone who has a property sitting in significant negative equity.
Many thanks to the team at Negative Equity NI”.
If you’d like to talk to somebody about your mortgage debt, contact us today or give us a call on 028 90236074.
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.