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Repossession - Other Assets

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If you default on a mortgage and own another property outright which you live in, is that at risk or can't they touch it ? No, it's not a BTL or anything like that.

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If you default on a mortgage and own another property outright which you live in, is that at risk or can't they touch it ? No, it's not a BTL or anything like that.

If the property sells for less than the mortgage, then you are still liable. They can bankrupt you if they wanted.

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If you default on a mortgage and own another property outright which you live in, is that at risk or can't they touch it ? No, it's not a BTL or anything like that.

If the sale of the property at after repossession fails to repay the mortgage + penalty fees + legal fees, then the bank has 12 years in which to collect the shortfall (+ interest).

If you have another property, they will have no difficulty in obtaining a charging order (assuming that they can find it, which they usually will be able to), which will prevent you from selling or re-mortgaging that property without first paying your debt. If the debt is substantial, they may be able to forcibly sell the property from under you (although you get any left over cash after the debt, legal fees, estate agent fees, etc. are paid).

An alternative, is to declare bankruptcy, but in a bankruptcy, you will almost certainly be forced to sell any other properties you hold.

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