Please Help Me!!!!

yurp_82 · 13 February 2007 at 1:05PM

Hi everyone,

This is my first pot on this forum although I regularly visit money saving expert. The question I have is in relation to my current mortgage and where I stand.

In August my Fiance and I split up, he continued paying the mortgage untill he moved out in December. My family paid him half the equity in the house so he could set up elsewhere as he wished as the alternative was he said he would force me to sell the house. I could not afford a solicitor to look into this.

Anyway now 2/3 months has gone by since he left and Ive been paying the mortgage on my own. I am short of my monthly bill payments and family have helped me with this. I was advised by my Mortgage advisor that if the lender (GMAC) were to find out the situation I may be forced to sell the house as my current income (£15,390) alone does not meet my bills. I took this advice but I am now finding it a struggle and feel I f I could have soem arrangement with them for a few months untill I get back on my feet it would be a big help. The mortgage rate is high with the company, I pay £590.00 a month on a £75,000 mortgage. I would love to remortgage with a highstreet lender (my ex offered to stay on mortgage whilst I did this) as I believe the repayments would be lower.

I really do not want to loose my house and I am becoming quite desperate as to where to go or what to do next. Ive spoken to Citizens Advice who couldn't really give me any advice! I may well be posting in the wrong place on here, but I thought it would be worth a try.

Thanks,

Emma

toonfish · 13 February 2007 at 1:11PM

you could possibly remortgage, there are a few lenders that will look at it at 5x income. As a short term solution can you get GMAC to switch you to an interest only mortgage.

You also need to consider any early redemption penalties with your current lender.

yurp_82 · 13 February 2007 at 1:24PM

Hi Toonfish,

Thanks for your reply

I will need to look at the lenders which would consider 5x income then. I am reluctant to use the same mortgage advisor as I do not feel he was overly helpful, e.g. he did't advise me what you have which is the most constructive advice I have had, thank you!

As far as early redemption goes, we were tied in for 2 years but this expired in January so just the average fees would apply I believe.

Interest only would be a big help, I am not sure how to approach them about this though, would I say we have split up or just leave that for now until I look into remortgaging? And If I leave it what reason would I give for wanting to switch to interest only! I really am in a bit of a mess with this.

CAB told me to check if the deeds to the house are in my name or joint names(originally I had as for 3 years the mortgage and property were in my sole name until we remortgaged in joint names with gmac. That was all they could advise really.

toonfish · 13 February 2007 at 1:50PM

if you have no redemption penalty then you are as well to remortgage now and sort it out once and for all. The likes of Northern Rock, Accord, First National, C&G, Abacus etc may all consider this - you really need to see a decent broker.

On an interest only basis you are looking at around £310-350 per month.

Don't forget you need to pay the borrowing back at some point in the future though!

plumduff-2 · 13 February 2007 at 1:52PM

Sent you a private message...

Debt147 · 13 February 2007 at 1:54PM

Hi Yurp

I have a feeling that Abbey National offer x5 mortgage deals so perhaps you could give them a call or pop in to see someone

Not sure about interest only deals I'm afraid so can't offer any advice there

It might be useful for you to post a full SOA on this site, there's bound to be people around to offer some good advice!

toonfish · 13 February 2007 at 1:59PM

Debt147 wrote:

Hi Yurp

I have a feeling that Abbey National offer x5 mortgage deals so perhaps you could give them a call or pop in to see someone

Not sure about interest only deals I'm afraid so can't offer any advice there

It might be useful for you to post a full SOA on this site, there's bound to be people around to offer some good advice!

abbey will only do 5x on bigger salaries as a rule

yurp_82 · 13 February 2007 at 2:28PM

Toonfish, If I was to look into remortgaging now, do I go to the branch myself and explain the situation ie wanting ex partner off mortgage/looking to remortgage for better rates etc? How would this effect my credit rating if they explore this and turn me down? The interest only option as a temporary measure until remortgage can be sorted sounds ideal! Should I explain to GMAC what has happened and negotiate or leave it as is and say we are looking at reducing costs for home improvements for example?

Debt 147 Forgive me for being a bit thick today but what do you mean by a full SOA? Its not even a Monday morning lol

Thanks to you both

Bestthingsinlifearefree · 13 February 2007 at 2:33PM

A SOA is a statement of affairs.

i.e all your out goings

rent / mortgage
food
petrol
debts

and all your incomings
salary
benefits

There is an example on this thread.

http://forums.moneysavingexpert.com/showthread.html?t=107280

Bestthingsinlifearefree · 13 February 2007 at 2:36PM

Could you rent a room out in the house ?

(one other point, I take it that if you have bought your fiance share of the house, his name is no longer on the deeds ? etc) i.e it is legally documneted that you have bought him out. So he can have no claim on the house in the future.

toonfish · 13 February 2007 at 2:40PM

yurp_82 wrote:

Toonfish, If I was to look into remortgaging now, do I go to the branch myself and explain the situation ie wanting ex partner off mortgage/looking to remortgage for better rates etc? How would this effect my credit rating if they explore this and turn me down? The interest only option as a temporary measure until remortgage can be sorted sounds ideal! Should I explain to GMAC what has happened and negotiate or leave it as is and say we are looking at reducing costs for home improvements for example?

Debt 147 Forgive me for being a bit thick today but what do you mean by a full SOA? Its not even a Monday morning lol

Thanks to you both

OK just phone GMAC and tell them you need to switch to interest only temporarily, I wouldn't mention you are separating at this point. If they ask why then you may need to come up with a viable reason as you suggest - tell them you need it for just 6 months or so and it shouldn't be a problem but they might charge you a fee to change.

Regarding the remortgage I would suggest you look for a relaible fees free broker, rather than go applying here there & everywhere. Don't apply until you have decided on the lender & product that you want as too many applications can affect your credit score.

Please Help Me!!!!

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