Unlike the majority of Debt resolution firms, we never simply accept that you should be in the position that you are in. As we all know, some mortgage lending was “fast and loose” during the boom years of 2004 – 2008 and so it’s important to clarify why you are in this situation.
Does any of this sound familiar?
- Speculative / overinflated valuations
- Interest only lending with no repayment method in place
- No affordability or rental checks
If you are still paying the price from the reckless lending of 2004-2008, isn’t it time you spoke to the experts about what you can do about it?
How We Work
Initially, we complete a Case Review which assesses your situation in terms of where you are today; This includes:
- Retrieval and review of your full mortgage file from your lender
- Completion of a Case Review Questionnaire
- Collation of any relevant documentation from you
Following this phase we can advise you on:
- Do you qualify for debt reduction on your negative equity property/properties that you need to sell?
- If you have buy-to-lets, which of your properties are likely to “weather the storm”?
- How are interest rates, Section 24 taxation, and future property prices likely to impact you in the future?
- How do you legitimately protect your other assets in advance of any future settlement negotiations?
- Are you able to re-negotiate terms for your existing mortgage(s) for properties that you wish to keep?
- Can you re-finance elsewhere to reduce costs?
FAQ About the Case Review Service
Will Negative Equity UK share any of my information with anyone else?
No. We request your mortgage file(s) from your lender but that is the only contact we have with them unless/until you instruct us otherwise.
I have assets in positive equity such as my own home, other buy to lets, pensions etc – should I be worried?
No. The vast majority of our clients are in the same position. Thankfully, it is not simply a case of selling all assets to clear mortgage shortfall debt. Remember, you borrowed the money from your lender(s) at a time of overinflated property prices and reckless lending. Our Case Review process is designed to obtain the advice you need to be armed with, moving forward. Where relevant, we will advise clients of legitimate asset protection strategies as part of the Case Review process.
Why do lenders write off debt? Surely, they would expect to be repaid in full?
Think back to the property boom of 2004-2008 – self-certified mortgages, interest only loans with no affordability checks, no repayment vehicle required and speculative valuations. This reckless approach spawned from fractional banking, where banks were able to lend money, they did not actually have on deposit. This encouraged a cavalier approach to mortgage lending that created the artificial boom in property prices. Banks heavily exposed to risky lending are restricted in how they can lend based on the level of debt they are owed from mortgage borrowers (liquidity margin). Resolving mortgage accounts by recovering the sale value of the property plus a settlement, and writing off some of the debt works for banks too.
How long does the Case Review take?
It depends. If the case is urgent, we can fast-track this to 1-2 weeks but generally the turnaround is 3-6 weeks, depending on how quickly we can recall any documentation and information from you and your lender.
What costs are there after the Case Review?
Some clients require the Case Review as a stand-alone piece of work only. This gives them certainty in respect of their current position and options; they may choose to take this forward themselves, or not.
For most clients though, action is required and clients prefer to have expert representation from ourselves to negotiate on their behalf. Where a property or properties are to be sold, and significant debt reduction is achievable, a typical fee is £4,500 per property and mortgage account would equate to an average saving of £50,000+.