Hi Hannah-not too sure if anyone has given you some advice on this subject so thought I would post a reply. Don't let the flat stand in your way of moving overseas-you do have some options. Unfortunately you are in negative equity so at some point you are going to owe some money if you get rid of the property and move to Australia. One option is to hand the property back to the mortgage company. If you take this action the mortgage company will sell the property for the best price possible but there will be a shortfall and you will owe some money. At this point you need to consider your options based on the current circumstances you find yourself in. You may be able to enter into a repayment agreement with regards to the shortfall or maybe even a full and final settlement if you have a lump sum of money. If not, you can consider declaring bankruptcy from Australia in the UK. This will clear the debt and not affect your credit in Australia. As long as you do not have any assets or disposable income the bankruptcy from abroad will have hardly any affect on you. Please note that if you are in the UK (or return to the UK) you will feel the impact of the bankruptcy on your credit record-it is shown for 6 years from the start date and does make things hard with regards to obtaining credit, rental property and even things like a mobile phone contract. Hope this helps!