Northern Rock, Selling and Charges on the property

[Gimbal]

Hi,

I'm posting this here as i dont know what to do.

In approx 2005 myself and my (soon to be ex) wife re-mortgaged our house with Northern Rock and had the 'Together Loan'

After this there was an additional loan that was taken out and secured on the property.

 

since then, we went our separate ways and due to the financial mess i was left with, I went bankrupt. This included my share of the together loan.

 

I agreed with the 2 lenders that had loans secured on the house that i would stay in the house and carry on making these payments.

 

I have been doing this for several years now (since Jan 2008) and everything has been fine.

 

My wife wasnt contributing to this as it was agreed that she would walk away from the house and as long as i kept up the payments, it was mine, but her name has had to remain on the deeds because Northern Rock refused to remove it.

 

the payments have become too much to afford every month and now myself, new partner and our 22 month old son have arranged to move.

 

we are trying to get into a new build house that will cost us considerably less every month.

I'm desparate to not get into the same financial mess that i was in before.

We have arranged to part exchange the house and they have offered us full market value (2 independent valuations) which would cover both secured loans.

 

Because of the mess that my wife was in, she entered into a debt management plan and because the full payments wernt being made to the unsecured together loan, northern rock placed a charge on the house.

 

They did this without informing me or my trustee (the insolvency service) but it still went through the courts.

 

Now Northern Rock are blocking the sale because there will not be enough money to cover the whole amount (including the together loan) as they say that the charge effectively makes it secured.

 

There will NEVER be an extra £60k in the house to pay this off (60 because the £30k has to come out of my wifes share of the house and not mine)

 

Apparently there is an option to lift the charge and let the sale go ahead but they wont even consider this unless i can prove i'm in 'financial hardship'.

 

They went through a very basic income/expenditure and deemed us able to afford the payments.

 

sale blocked.

 

we gave them more accurate figures.....still the same.

because we have both been bankrupt (me and my new partner) our bank balances will always be in the black at the end of the month as we are not allowed to go overdrawn.

so how can we prove we are in financial trouble?

 

I went through a comprehensive income/expenditure with the nation debt helpline that shows we are living well beyond our means (getting by with help from parents) and I have posted this and emailed it to Northern Rock but still nothing.

 

Is there anything i can do?

 

This is killing me knowing that I am sliding further and further towards where i have fought so hard to get away from.

I've tried reasoning with them, telling them that i'll be repaying all the secured money and my wife will continue to make payents on the rest through her management plan.

 

NR suggested (in so many words) that i could default on my mortgage payments and they might be able to look at things again.

I cant do that as it would affect my (already shakey) credit rating and I'd never be able to get the mortgage for the new house.

 

Please help me.

 

I feel like i've been treated really unfairly and that as my (admittedly complicated) circumstances dont fit in with the procedures that they keep harping on about, I'm being left to slip into financial meltdown.

I was even asked about the amount I had put in the expenditure for prescriptions. "Do i really need them?"

Yes, I bloody do.

 

I just wan this to be resolved and to pay back the money i borrowed and return to living within my means.