# Leaving mortgage and loans and moving to the UK



## lubo (10 Apr 2013)

Have lived a long time in the ROI but things have come to a head and it's now time to move back to the UK. Thing is I have a mortgage (KBC) and a Credit Union loan hanging over me here in Dublin. 
If I tell the bank I can't pay anymore and that I'm leaving the Country, will the debt follow me and affect me while in the UK??

What's the best course of action to take?? 


ps: If my house was in a decent place and I could get someone in to rent it then I'd most definitely take that as an alternative, but I've tried and it's almost impossible to get anyone in.


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## 44brendan (10 Apr 2013)

A lot depends on your financial circumstances. i.e. If your house is in negative equity and personal finance position is such that you are unable to meet mortgage payments, then best option is to write to the Bank, advise them of your intentions to exit the country and offer to voluntarily assist them in re-posession/sale of the property. Indication is that you don't intend to serice the CU loan after leaving the country. it's unlikely that if the amount is small the CU will pursue you in the UK. But be aware that this is possible and if you can be traced and have a UK income the risk remains.


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## meepman (10 Apr 2013)

44brendan said:


> A lot depends on your financial circumstances. i.e. If your house is in negative equity and personal finance position is such that you are unable to meet mortgage payments, then best option is to write to the Bank, advise them of your intentions to exit the country and offer to voluntarily assist them in re-posession/sale of the property. Indication is that you don't intend to serice the CU loan after leaving the country. it's unlikely that if the amount is small the CU will pursue you in the UK. But be aware that this is possible and if you can be traced and have a UK income the risk remains.



How much is a 'small amount'?


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## munchy (10 Apr 2013)

44brendan - I understand that it is very hard to be pursued abroad for a debt in Ireland? First the judgement would have to be decided in Ireland, and then the creditors (or their henchmen) would need to go through the UK courts before being able to access your Uk assets or income and that process is long and expensive for them, so very unlikely


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## lubo (11 Apr 2013)

44brendan said:


> A lot depends on your financial circumstances. i.e. If your house is in negative equity and personal finance position is such that you are unable to meet mortgage payments, then best option is to write to the Bank, advise them of your intentions to exit the country and offer to voluntarily assist them in re-posession/sale of the property. Indication is that you don't intend to serice the CU loan after leaving the country. it's unlikely that if the amount is small the CU will pursue you in the UK. But be aware that this is possible and if you can be traced and have a UK income the risk remains.


House is in negative equity by around €70-80,000. I've only recently went into arrears as finances are becoming more strained. The CU loan is in or around €5000 (loan minus savings).


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## 44brendan (11 Apr 2013)

70/80K is a considerable write-off for a bank/BS to accept. However the fact that you will be exiting the country is one factor and your financial position/earnings capacity in the UK is another. Put a proposal to the Bank, and if you are not in a position to repay more than the sale of the house value state that in your proposal. Better to address this with the Bank than walk away, as the Bank will then need to take proceedings against you in order to re-posess the property!


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## dereko1969 (11 Apr 2013)

From a moral point of view I'd rather people defaulted on a bank rather than the credit union which is based on a community, so faceless bankers rather than the people you live and work beside.


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## Bronte (15 Apr 2013)

Are you able to go bankrupt in the UK?

How about you writing to your bank and asking their permission to sell as you are moving abroad.


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## lubo (15 Apr 2013)

44brendan said:


> 70/80K is a considerable write-off for a bank/BS to accept. However the fact that you will be exiting the country is one factor and your financial position/earnings capacity in the UK is another. Put a proposal to the Bank, and if you are not in a position to repay more than the sale of the house value state that in your proposal. Better to address this with the Bank than walk away, as the Bank will then need to take proceedings against you in order to re-posess the property!


When I move over, as it is I have no job or anywhere to live and will therefore be declaring myself homeless. Will the bank chase me overseas for this?? 


dereko1969 said:


> From a moral point of view I'd rather people defaulted on a bank rather than the credit union which is based on a community, so faceless bankers rather than the people you live and work beside.


If I can get redundancy then the Credit Union will be paid.


Bronte said:


> Are you able to go bankrupt in the UK?
> 
> How about you writing to your bank and asking their permission to sell as you are moving abroad.


That is what I was thinking but I'm wondering how it would affect me while I'm there. I have no intention of returning to Ireland


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## Gerry Canning (15 Apr 2013)

TELL the Bank what you are going to do, offer to help them with the sale. You are beyond negotiation and a (willing) sale is MUCH better for everyone than a Repo/awkward sale.And get ANYTHING agreed in WRITING .Remember they need YOUR help to (only) lose K80 !!!

If things improve in Uk ,try and sort the Credit Union, as I have found them honest.


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## Bronte (16 Apr 2013)

So it's clear you will be able to go bankrupt in the UK as you will have no real income and only have debt in Ireland.  I would just tell them you are going and ask them to allow you to sell the house.  If they don't then just leave them the keys and the mess to clear up.  

What do you mean declare yourself homeless in the UK.  Surely you are going to rent somewhere.  It's not necessary to be homeless.  Have a look on here on the UK bankruptcy threads.


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## Steve Thatcher (17 Apr 2013)

If you decide to move to the UK, you will need to tell the creditors your new address.
One way to do that and to deal with the house, would be to write and 'jingle mail' the keys back about three months before you want to go bankrupt.

This has the effect of complying with the law in that your creditors will be able to ascertain where you are, the bank have a last chance to do a deal, and the Official Receiver in the UK will not have to deal with the disposal of your property, meaning he will have less contact with you, giving you an easier bankruptcy

Steve Thatcher
Www.helpwithdebtuk.com


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## lubo (3 Jun 2013)

I might have a chance to rent house out though will only get €400-450 per month for it. Is it worth the hassle does anyone think?? I don't intend coming back here, any problems with the house such as washing machine breaking down or a broken window, I'd need to get it sorted and being in a different country I don't feel I'd be able for it.

Steve_Thatcher, why do I have to tell them my new address?? As it is I don't yet have an address to go back to. I don't know if you're based in the UK mate, but would you know of a decent (free) Financial Advosor type I could see in Glasgow???

EDIT: If I decide to go the Jingle Mail route and just go back to Glasgow, what are the consequences for me? How will it affect me in the future?? What if I just went back there, got a job and carried on as if nothing and imagining Ireland and this fkn mortgage never happened, would this be possible?????


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## Mexican (12 Jun 2013)

Hi, 

Not sure where to post this question, so if it is in the wrong place please move to the appropriate thread.

Like many people I am in huge negative equity in the Rep of Ireland.  However I work in the UK and all bank accounts etc are registered to a UK address.  From a UK banks perspective I would be a first time buyer in their eyes.

I have tried to negotiate with the Irish bank to be able to sell the house, which they have agreed to but I would need to carry the negative equity as an unsecured loan (unsustainable).

My question is, if I sell the house (get whatever we can for it) carry the unsecured loan, would I still be able to apply for a mortgage in the UK?  Will the unsecured loan affect my UK credit rating?

Thanks


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