As a home owner you may decide to sell your home at some point. The proceeds of the sale may not be enough to cover the amount still owed on the mortgage. In other words, you sell the house at a loss and are left with a residual debt. NHG can ‘waive’ this loss for you, provided that you meet its waiver requirements.
Get good advice before deciding to sell your home
If your circumstances change dramatically and you think you’ll be forced to sell your home, you must talk to your mortgage lender about the options for your specific situation before you take any decisions. The mortgage lender can advise you on the options and the constraints related to a decision to sell. It’s important to do this before you actually put your home on the market because you have an obligation to obtain good advice in advance about the possible financial implications of selling your home.
What are the other options to selling your home?
You may think that a forced sale is inevitable, but in some cases other solutions can be found. WEW works with mortgage lenders to find these solutions. What’s important in these situations is that you take steps as early as possible to identify the financial implications of the change in your situation. Before you put your home on the market, the mortgage broker needs to be able to make an objective assessment of whether you (and/or your ex-partner, as the case may be) will be able to afford the mortgage payments.
Safety net when a sale becomes inevitable
If in certain extraordinary circumstances selling your home is clearly the only option, then we provide a safety net that you can rely on.
The specific circumstances under which NHG comes into operation are:
- if you lose your job
- if your relationship ends
if you become disabled for work
if your partner dies
If you find yourself in these difficult circumstances, you can apply for a waiver of the residual debt, provided you meet all the requirements.
Please note that if your home is sold at a loss and you buy it back again, you will no longer be eligible for an NHG-backed mortgage.
Dos and don’ts when your circumstances change
- Do keep up with the bills
- Do take the initiative to talk to your mortgage broker
- Don’t decide to sell before you talk to your mortgage lender
Don’t despair if you have to sell at a loss. NHG may be able to help waive the residual debt