Correct - we have made standard payments only. Whilst we have lost out on the house, fortunately our salaries have improved significantly since 2007. We are not struggling to make ends meet now (we were in 2007 & 2008). Our mortgage payment is c.20% of our net income. We have no other debts. Do you know if there are any examples of First Trust agreeing to debt forgiveness in residential mortgages? We have no emotional attachment to the house therefore if they agreed to a 'consensual sale' we would get it on the market in the morning. When I met with them c.12 months ago, this was certainly not an option. I'd be reluctant to plough all our savings into the mortgage in case debt forgiveness becomes a policy in the coming years. Stuck in limbo.
My wife and I were first time buyers in July 2007. We bought in Belfast and paid £250,000. The house is now worth c.£125,000. We owe the bank c.£200,000. We need to move closer to our original hometown but the negative equity on our existing home is proving to be a stumbling block. Debt forgiveness isn't an option - we've exhausted this avenue with the bank. They won't transfer our existing mortgage to a new house. We don't want to rent in our hometown as we need stability. We could possibly afford to buy something up to £150k and retain/rent out our original house but suspect the negative equity on our current house will be deemed negatively by a new lender. Has anyone been in a similar scenario? Any advice?