I bought a 2 bedroom flat for £25,000 in 1991 the bank allowed 100% mortgage at this time. Since then the building has become un-mortgagble and the value has dropped to £9,000. I now have a family of 3 kids and the flat is too small. I have a baby, a boy of 5 and girl of 3, how could I move on, I have no arrears and the mortgage was for 25 years endowment, I have paid it for 12 years. I only have an annual income of £12,000.

-- Brian Kirkwood (Brian-K@blueyonder.co.uk), December 06, 2002

Answers

i am always on the lookout for cheap rundown slum type properties, so that i can stick DSS tenants in them.

If you want to sell i will buy it from you.

-- honest joe (rachman@aol.com), December 06, 2002.

Brian,

You could try contacting a housing association in your area (there may be a regeneration program operating) and come to some arrangement, or perhaps the local council may be able to help (sometimes they operate special schemes whereby you can buy a percentage of a property and rent the rest & gradually buy it all). I would also check that you haven't got a projected mortgage shortfall with your endowment policy. There is a time limit in which you can apply for compensation, which I believe runs from the first red advice letter (see the Consumer Association's web site for full details). Good Luck and have a Happy Christmas even if it is a bit cramped.

Mark.

-- M Amos (idgroms@hotmail.com), December 07, 2002.

Honest Joe as he calls himself has a point that might be useful to you, but rather than selling it him have you considered moving into local authority property as suggested and renting your curent property out. You may be able to cover the monthly payments on the mortgage and get a bit extra!

Using AST's (Assured Shorthold tenancy agreements) you can rent the property out and in time who knows, the price may climb again allowing you to sell at a profit or at least without a shortfall.

You will need permission from your lender though to rent the property out.

-- Lee Wisener (Lee@wisener.net), December 19, 2002.