Our Consultants will provide you with all of the information and assistance you need to begin the process to take back control of your property and finances.
Frequently Asked Questions
I have an Interest Only mortgage, with no repayment vehicle. What does this mean for me?
Properties that were purchased with finance from an interest only mortgage require the full capital amount of the mortgage to be repaid at the end of the mortgage term.
Thousands of homeowners currently find themselves in the position where they have no repayment vehicle or savings to discharge their mortgage at the end of its term.
Mortgage lenders are not required to automatically extend the term of your mortgage if you do not have the means to repay the capital amount at the end of the term.
Many home owners in this situation had planned to sell their property at the end of its term and benefit from the surplus equity in the property allowing them to purchase a another property and/or retire.
Unfortunately for many this is now longer possible as property markets have failed to preform as expected in the last 10 years and create an anticipated future investment.
What level of resolution can I expect?
Our consultants have experience in mediating one off settlements and longer term repayment plans to suit your circumstances and budget. Criteria varies with each lender once a review is completed our consultants can discuss this in more detail.
Once an agreement is reached with your lender you will have the option to settle the balance early if you wish without incurring any penalties.
What documents do I need to provide?
During the course of any mediation with your lender you will be asked to provide various financial documents to prove your income and affordability. These will be required upon your initial case review for us to fully assess your circumstances and again when submitting a proposal to your lender. Your lender may require to assess any changes in your income over a period of a few months before considering or agreeing to a debt resolution.
It is important that you advise us of any changes to your income or financial circumstances as this could impact upon negotiations.
How will my credit file be impacted?
There are a number of online companies that can provide you with a copy of your credit file.
This credit file and scoring is used by lenders to assess your credit worthiness.
Any formal or informal debt resolution with your creditors or mortgage lender may have an adverse impact upon your credit file. If a company tells you different this is simply untrue.
It is important however to put any short term affect into perspective. Whilst you continue to maintain utility bills such as mobiles or essential items like vehicle hire purchase you will be demonstrating a level of credit worthiness contributing towards your overall credit score.
If you are already in mortgage arrears or behind with your unsecured debt repayments your credit file will have already been affected.
Struggling to maintain a mortgage you can't afford may have a longer impact upon you than seeking to address it via a mediated solution.
How long will my resolution take?
The length of time to complete a debt resolution can vary. There are a number of items to take into account ie is the property to be sold on the open market, are there ongoing legal proceedings by the lender, the number of joint owners, other assets etc.
Typically mediation can take around 12 months to complete post sale.
Once we review your case in detail we can give you an indication of how long mediation may take to achieve a resolution with your lender.
How is a personal guarantee different?
When commercial lending is involved lenders may seek a personal guarantee from you and or any parties named on the debt with you. This may also happen where you have insufficient personal income to meet the lending criteria and a guarantee is often sought from a third party.
Lenders do this to minimise their risk ensuring they have recourse against the Guarantor.