Voluntary Repossession

Posted on 9 March 2012 by Greg


My fiancee owns a house and I am moving in with her however I cannot sell my First Time Buyer Initiative house. If I do a strategic default and surrender my property will I get out of my current mortgage and fees. Are there other issues except credit rating that will affect me.

Greg

Don't do it.  If you surrender your property not only will your credit rating be adversely affected for the next 6 years, making it very difficult if not impossible to obtain any credit card, overdraft, mobile phone contract or any other type of credit, but you will still be liable for any outstanding mortgage debt, interest and professional fees left outstanding after the property has been sold.

You should speak to your mortgage lender and Citizens Advice to see what options are available to you.

Peter

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