Page last updated at 18:45 GMT, Friday, 8 August 2008 19:45 UK

Desperately hoping for a new home

David and Nicole Redman are in danger of joining the thousands of Britons who have lost their homes amid spiralling repossessions by mortgage lenders.

David, Nicole and Joshua Redman
The Redman family is due to expand before the end of the year
The Redmans, of Bognor Regis, West Sussex, are due in court later this month, unable to meet increased payments set by their lender after they fell into arrears.

The couple, who live with Mr Redman's mother and their two-year-old son, have another baby due in November. They find they are unable to sell their home to clear their debts.

David Redman describes their difficulties:

We were stitched up with the original mortage deal.

We took out the mortage in August last year because my mum went bankrupt, and we had to buy the house - otherwise we would all be homeless.

Because we had to buy it quickly, with the situation we were in, we got a really, really bad deal on the mortgage.

All we could get

We were told it was the only deal we could get, but could remortgage later on after the fixed-term was over and get a better deal that was more affordable.

We have built up our arrears because we had a couple of floods in the house that required repairs; also my wife was sick and she was off work for a while.

David and Nicole Redman
They are unable to rent despite an "above average income"
We had a deal to pay an extra 50 a month and could afford the payments.

But when my wife was off sick we lost pretty much a month's pay, and that was when they stopped the deal because we couldn't pay again.

It added extra to the arrears, and they changed the deal to an extra 200 a month. I just told them there was no way we could do it, but they wouldn't budge.

What we hope to do at the court date is get the judge to side with us and get them to accept an amount that is affordable - we could pay an extra 100 a month.

But even if we can set up a deal to pay it off, we can't afford the mortgage once it comes off the fixed-term in January. And we can't get another mortgage from anyone because we have arrears.

Because it is on our credit rating, no-one will rent to us or remortgage for us. We can afford 750 a month - we can afford to go out and rent a house, but no landlord will rent to us.

At this point we don't care whether we sell the house or lose it, because we still need a place to rent anyway

We did have a buyer for the property but he has pulled out now. We have had two people viewing in four months. It is a maisonette - they are just not selling at all unless they are really cheap.

The price has dropped from 139,000 to 122,000. The estate agents want us to drop it to 119,000. Even at the price it is now, we end up owing the mortgage company.

At this point we don't care whether we sell the house or lose it, because we still need a place to rent anyway.

The estate agents don't seem to have cottoned on to the fact that there is a need for people with bad credit to rent housing.

Temporary accommodation

They are keeping looking for us. Some of the estate agents are really helpful; others turn their noses up straight away - but even the helpful ones cannot find a landlord who will take us over people with good credit.

The council can only provide us with temporary accommodation, reserved usually for single, teenage mums. It's just down the road from where we are, and the police are there all the time.

We are just desperately looking for somewhere to live. It's really stressful. We wish we had never got into the mortgage.

They took advantage of the situation we were in at the time, and now we are paying for it.



SEE ALSO
UK home repossessions rise by 48%
08 Aug 08 |  Business


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