"Starting to feel there's a light at the end of the tunnel, thank you"
Mr G., Oakwood, Derby
Voluntary Repossession is when a mortgage payer decides to vacate their home, and hand the house keys back to the Mortgage Lender, usually as a last resort when struggling to make repayments on their mortgage.
Below we explain the possible implications of Voluntary Repossession, your responsibilities, alternative solutions, and how we may well be able to help you!
Table of Contents:
So as we detailed above, Voluntary Repossession is when a mortgage borrower who is struggling to meet their mortgage repayments decides to vacate their home, and give the keys to their property back to the mortgage lender for repossession.
Handing back the keys to your property should only be done as the result of serious consideration and as a measure of last resort. It's very important that you are aware of the implications that voluntary repossession brings.
Voluntary Repossession is likely to be more expensive as you will have to pay for alternative accommodation, as well as remaining responsible for your:
You should also be aware that in order to recover the mortgage balance, the lender is likely to sell your property at auction. This will inevitably result in a lower sale price bring achieved than if you were to sell the property privately.
If your home is sold for less than the amount you owe on mortgage, you are still liable for the outstanding debts. Some borrowers make the mistake of assuming that the mortgage indemnity guarantee policy or higher lending charge will pay the difference. Unfortunately, that is not the case, and although the insurer will initially make settlement with the lender, the insurer will then pursue you for the amount of shortfall, through the courts if necessary.
Are there any alternatives to voluntarily handing back my keys and letting the mortgage lender repossess my home? Well yes, there are alternatives. As you can see from the notes above, there are serious implications that you must take into account with voluntary repossession. If it's a simple case of economics, and your present budget is severely strained, you may find that your lender may be in a position to accept interest only payments for a period of time. However, if you have already fallen into arrears on your mortgage account, more drastic action may be called for.
In most cases, yes we are able to help! If you find yourself in this ominous situation please call us, and speak with one of our mortgage experts. We will usually be in a position to quickly ascertain the best way of tackling the problem, and provide just the right solution for you! Here at Shire Direct we specialise in situations where your finances may have blown off course.
We'll carefully review your circumstances, and take you through the options that may be available to you. We have a portfolio of specialist lenders who offer mortgage products that will consider borrowers whose mortgages may be in arrears, and who may need to reschedule their debts in order to bring their commitments back into an affordable state.
You'll find our mortgage advisors will deal with your problems sympathetically and not judgmentally. We understand how worrying this type of problem can be, and we have the knowledge and expertise to help you get back on track!
Hopefully, we've managed to explain Voluntary Repossession, its implications and the potential alternative solutions available. Please don't hesitate to contact us if you think our help and advice could be useful. Our Freephone telephone number 08000 282 281 is open 14 hours a day from 8am until 10pm (including weekends), or why not enquire online anytime! We'd love to hear from you and be able to help you!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.
