How We’ve Helped Families Out Of Negative Equity
| Did you know that negativeequity is widespread in Northern Ireland, with just over 40% of households affected?
While their ranks may include a number, in negative equity, who are able to maintain their mortgage repayments comfortably enough at this stage, the inevitability of an interest rate rise at some point in the future threatens to see them sucked into the unserviceable debt vortex, too.As things stand right now, those people are in the fortunate position of being able to forward-plan for what is coming. So central to their preparations ahead of change they should start by asking themselves what exactly they want or need to achieve in terms of their home.
Do you hope to stay there or are you aiming to sell up and move on? If your plan is to sell, do you have money of your own or can you raise it elsewhere to offset the shortfall caused by your negative equity? And having sold, are you happy to rent, or is your objective to buy again?
There is another huge question, too, and it is this: is your mortgage interest-only and, if so, what steps have you taken to ensure you are going to be able to clear the capital loan itself at the end of the repayment period into which you entered with your lender? If you are not going to be able to do that, you need help.Clearly the questions that arise once you start trying to address the matter of how you are going to get out of negative equity are many and varied. The basic ones are these: can you stay where you are or must you sell for reasons of affordability, size (property too big or too small), or a change in your circumstances following a relationship break-up for example?You will be relieved to know that negative equity help is available and there are plenty of fully satisfied clients who can vouch for the quality of the assistance they received and the difference that has made to their lives.
Here we cite just two. In respect of their privacy, we have changed their names. These are their exact words.
On August 6, 2015 Andrea wrote:
Before we came to you, we were in a very desperate state. We had purchased a buy-to-let apartment for investment purposes and the market fell.Our property was in negative equity and costing us money to keep each month. We could not live in it as that was not the area where our employment was and it was not a suitable property for a family, so we were really stuck.It was a noose around our neck.We were so desperate we had considered just giving the keys back to the bank.We were introduced to yourselves through a friend who was a financial advisor. We met with Tom and Bob on separate occasions and had dealings with Natasha and Michael and a few other members of staff at times.The staff were all fantastic, they were professional, polite and helped and explained everything we needed to know. Bob and Tom explained every step of the journey and offered advice at every level but always left the decisions to us.It was a very worrying time, scary even, but they made a difficult situation a bit easier for us. I could ring at any time and someone was always happy to help, and throughout the whole process someone kept in touch with me.My case is now settled and we are very grateful for all the work and support given by the team at CD Fairfield.We are now in a position where we have no debt again and we will be able to concentrate now on saving again each month and hopefully in the future we will be in a position where it may be possible to buy our own home.I would recommend your company to anyone who found themselves in this negative situation.Thanks again for all your help.
Another client we were able to help was Joy.Outlining her particular circumstances and how they were handled, she wrote:
I thought I was stuck in a rut with no option to but continue paying an interest only mortgage on a property that would never go back to the value I bought it for!
I thought I was trapped.My experience was overall very good. Initially there was a lot of contact, then for a while it seemed like I had to make all the phone calls to for updates, as I was very stressed about it all and that Santander continued to contact me directly and I didn’t always know what to do or say.However once the property was agreed for sale and the case passed to Michael communication has been excellent.Settlement means a weight off my mind and I’m able to sleep at night without worrying about interest rates going up and being trapped in the situation.I’m now able to change to repayment mortgage on my home and start paying that mortgage off!
We have helped 100’s of families across NI and only ever take a case on when we are 100% confident we can deliver. If you need to speak to someone about your negative equity or mortgage debt, call one of our helpful and qualified team today on 02890 236074, or arrange a call back here.
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.