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.
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.
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.