I have been looking at the forums for a number of days and thought it was about time I joined up and started to contribute!
I live in the North West and need some advice/sense checking. Some of you may think that what I am going to ask is irresponsible and unethical, but please let me know what you would do in my situation....
I am in my early thirties, earning an 'ok' salary but i am by no means affluent. In 2006 I purchased a new build, tiny, three bed semi in Manchester. I was given a gifted deposit of 5% from the developer. Very stupidly took out a secured loan at a stupid interest rate and I stopped paying this over two years ago.
The secured loan company send the odd letter but are not harassing me or phoning.
My mortgage was initially interest only, but i switched to repayment about a year ago. I am in negative equity to the tune of circa £30,000
Do I sit tight, keep paying the mortgage in the hope that property prices pick up (don't think this is going to happen any time soon)
What about the secured loan? Even if prices do creep up the are going to want their money at some point! (I am investigating a number of issues with the agreement and the legal charge, but not sure what the outcome will be.). Am I just delaying the inevitable?
The most drastic option..... My partners credit file is not linked to mine. My partner has been provisionally accepted on a government rent to buy scheme, vastly below market rent for two years with no commitment to buy a house with what is saved. I know unethical.... But is handing the keys backs and not linking myself to the rented property an option? Effectivly I wold go off the radar.
My head is in a funny place with the stress of this, I just don't know what to do!