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RJM Law
RJM Law, Lawyer
Category: Property Law
Satisfied Customers: 2932
Experience:  LL.B (Hons)
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I have a property in negative equity and have been in

Customer Question

Hi
JA: Hello. How can I help?
Customer: I have a property in negative equity and have been in contact with a company called Negative Equity Uk. They have advised me that they can obtain a debt reduction with my lender of , approximatley, 40% of the negative equity balance. For this they will charge me £4500. They have told me my credit rating will go down significantly but will start to recover after a couple of years. I told them that i will want to obtain another mortgage in the future (approx 5 years) and they have advised that my credit rating will have recovered enough to do rhis. My question is this, is the advice regarding my credit rating and my ability to obtain a mortgage in the future accurate ?
JA: Have you talked to a lawyer about this? In which country do you live? If different, which country is your legal question related to?
Customer: No i have not spoken to a lawter about this and i am in the UK.
JA: What steps have you taken so far?
Customer: Like i aaid, i have spoken to Negative Equity Uk. I jhave filled in some forms and paid them a fee of £400 for then to review my case. I guess i'm after a secind opinion from a lawyer experienced in this field as to the accuracy of the advice given to me so far by NE.
JA: Anything else you want the Lawyer to know before I connect you?
Customer: No i think that is it .
Submitted: 15 days ago.
Category: Property Law
Expert:  Virtual-mod replied 14 days ago.
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Expert:  RJM Law replied 14 days ago.

Welcome and thank you for choosing our service, I will be the expert assisting you with this matter today. I appreciate this matter is important to you and I shall try to resolve it as precisely and quickly as possible for you today.

Please note; there may be delays between messages as the experts on this website all work on a third party basis and are not online full time however, I shall endeavour to respond to your question as soon as possible. I look forward to assisting you in this matter.

Thank you.

Expert:  RJM Law replied 14 days ago.

Thank you for the question. The advice they have given you is not technically incorrect, however there should be a caveat to this. If your credit rating dips dramatically, then it could recover to a level where you could be approved for a mortgage within 5 years. However this is not strictly straight froward. You would have to ensure that you are doing your part for the credit rating i.e. making all payments on time, register on the census etc. obviously if you were to take out any cards or loans and default or take out too much credit then that would also negatively affect your rating also, therefore this would require to be factored in. However, if you have a clean record and don't do anything that negatively impacts your credit score then it would be possible to recover in 5 years.

Hopefully, I have answered your query in a way that is simple and easy to understand. If anything remains unclear, I will be more than happy to clarify it for you. In the meantime, thank you once again for using our services.

Should you require any further assistance on this matter, please do not hesitate to post a further questions for additional assistance.

Kindest Regards.