How it developed
But the financial crisis of 2007-2008 sent the value of the flat plummeting to £60,000. Sixteen years later, it has yet to recover its value.
On top of this, Northern Rock went bust and had to be bailed out by the government.
Judge said: "My initial plan had been to hold onto the flat for a while and then move, but suddenly it was deemed as a 'bad mortgage' because the property had fallen into negative equity.
"The banks got the bailout and the ordinary borrowers got left trapped paying sky-high interest rates."
He then got married in 2010 and, thanks to his wife being able to sell her small flat in Kent, they were able to get a property in Manchester when he became a pastor in 2013.
"I couldn't sell the Newcastle property even then. I've tried to rent it out but it doesn't cover the rising cost of servicing the property, once you add in the letting agent fees. Being a landlord has been a nightmare, especially since 2017 with the new laws and taxes.
"Even though we've been meeting the payments each month, the rate rises and the cost-of-living crisis has been terrifying.
"We can't make savings for the children or put money away for tomorrow - everything we can, we're throwing into paying off the mortgage on that property because it has become a millstone.
"Our hope is that it recovers in value enough for us to be able to sell - but our options are few and we've not had any discussions about where we can go from here with Heliodor."
Breakdown of the figures:
- The original loan was £95,000
- The outstanding balance is £86,860.86.
- The interest rate is 8.48 per cent variable.
- The remaining term is 8 years & 10 months.
- The flat is valued today at £85,000.
- To restore years on the leasehold it would cost £16,000 plus £4,000 in legal fees to extend the lease.
- Without an extended lease, today the flat is only worth about £65,000 to a cash buyer.
Judge also expressed concern about headlines showing that house prices are dipping in certain areas, with would-be sellers getting offers far less than their asking price.
"We just want the freedom to go to the whole of the market or find a better interest rate.
"We've tried to do everything right by paying off our debts and even making overpayments where we could, but this is a burden on the whole family and we are at the mercy of the markets."
Heliodor response
Judge added: "I know I have been better off than many of my fellow mortgage prisoners", but expressed his sorrow that his wife has ended up sharing this debt, and that he has "barely" been able to make savings for his children.
"With the cost of living crisis and the continued rate rises, we do feel like we are on a ticking time bomb - all it takes is one more thing to set it off and the plans we are working towards - paying off the debt and getting rid of the property for good - will all come to nothing."
