To assess whether you are in negative equity the bank would have used large corse criteria which may not wholly represent your situation.

To asses whether you are in negative equity you should get your property valued by a few local estate agents in writing. If it's good news, forward the valuation along with details of your neighbours houses which have been sold / on the market to your bank. (you can use www.nethouseprices.com to find sold data)

They may then agree that you are not in negative equity and be willing to offer you interest only.

Good luck,

David

Make an appointment and see a Manager. They are there to help you. Explain your situation, information you have on other houses in the road. The last adviser seems to have only be interested in selling you insurance which you can ill afford at the moment. I would be surprised if a more senior person cannot help. Good luck.

Yes, if you miss payments by agreement you will be in a better position than if you missed them without agreement but in a worse position than if you had made the payments.

You should investigate working tax credits. A chat with your local Citizens Advice Bureau might also be worthwhile.l

I am hoping for some advice.In April I went to see a mortgage advisor at the Halifax as my husband had his hours cut and we where struggling to make our mortgage payments. We borrowed £112000 2 years ago the house was on the market at the time for £150000 we paid £142000 We have not defaulted I was just testing the water to see what they could offer us as a struggling family. We where on a 3 month payment holiday so the advisor offered us an extension up to 6 months on the payment holiday. I discussed with her that come the 1st of July when our deal ends we would like to go onto interest only until things pick up. She told me that this was possible & to come back nearer the time. I have been back today to see a different advisor as the 1st of July is nearly upon us. She now tells me that due to the payment holiday we are now in negative equity as we owe £115000 approx so therfore cannot be offered interest only. The house over the road from me was sold in Jan for £140000 and my next door neighbour has theirs on the market for £130000 at the moment but the avisor said that the way they calculate means we are in negative equity.

I am totally baffled as I went for help from the bank and now feel we are in a worse position we cant get a new deal as we have no deposit. So just have to accept what they have to offer in short they have us by the short & curlies. The only thing the advisor wanted to do today was sell me more insurance products. I came away totally deflated.

What do I do next any idea's?

Thanks

Ann