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  • FIRST POST
    • KatTee1
    • By KatTee1 17th Mar 17, 2:48 PM
    • 3Posts
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    KatTee1
    Guarantor mortgage
    • #1
    • 17th Mar 17, 2:48 PM
    Guarantor mortgage 17th Mar 17 at 2:48 PM
    Hello, I am new here so bear with me please!

    I am in the process of divorcing my husband. We are going through mediation and one option for me to stay in the family home has been proposed by my husband. It would see me having to try to afford to take on the mortgage in my name and at present I don't earn enough to do so.

    I am starting to have a look at guarantor mortgages. My parents have offered to support in whatever way they can help. Has anyone got experience of this type of mortgage? If so, the fact that my parents are both retired, how does that affect things? They are fortunate to be in a good financial situation with decent savings, very good pension income and no mortgage on their house, worth circa £1.5m. The property I own with my husband is worth around £550-£600k with a mortgage of £210k.

    Many thanks in advance.
Page 1
    • dimbo61
    • By dimbo61 17th Mar 17, 9:52 PM
    • 9,324 Posts
    • 5,058 Thanks
    dimbo61
    • #2
    • 17th Mar 17, 9:52 PM
    • #2
    • 17th Mar 17, 9:52 PM
    Do you have kids ?
    £210,000 is a big mortgage and that is before you try and sort out the equity your Ex husband might want.
    • KatTee1
    • By KatTee1 18th Mar 17, 5:53 PM
    • 3 Posts
    • 0 Thanks
    KatTee1
    • #3
    • 18th Mar 17, 5:53 PM
    • #3
    • 18th Mar 17, 5:53 PM
    Yes, two, both primary school age. The equity that my husband has proposed he receives I have as a lump sum that could be paid directly to him without the sale of the house. It is what he has asked for, in order for him to be able to afford to buy the home he wants. I am seeing my solicitor in a fortnight to discuss, I am just finding out what I can about my options prior to this.

    Many thanks.
    • dimbo61
    • By dimbo61 18th Mar 17, 6:07 PM
    • 9,324 Posts
    • 5,058 Thanks
    dimbo61
    • #4
    • 18th Mar 17, 6:07 PM
    • #4
    • 18th Mar 17, 6:07 PM
    You really need to see a solicitor and find out how much your pension and your husband's pension is worth.
    Did you keep separate bank accounts ? Could he have other money shares etc
    The idea you split everything 50/50 goes out the window when you have children that are also primary school age.
    He will have to pay you maintenance until they are 19 either via court order or the CSA/CMS
    Last edited by dimbo61; 20-03-2017 at 7:43 PM.
    • KatTee1
    • By KatTee1 18th Mar 17, 9:47 PM
    • 3 Posts
    • 0 Thanks
    KatTee1
    • #5
    • 18th Mar 17, 9:47 PM
    • #5
    • 18th Mar 17, 9:47 PM
    Thanks yes, we are well into sorting out all the rest of the finances. We've exchanged financial details during mediation. Slowly but surely...
    • Fireflyaway
    • By Fireflyaway 18th Mar 17, 10:15 PM
    • 808 Posts
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    Fireflyaway
    • #6
    • 18th Mar 17, 10:15 PM
    • #6
    • 18th Mar 17, 10:15 PM
    I cant advise legally but if this were me, I'd be tempted to sell the house and you both use whatever equity is left ( in the proportions awarded) to use as deposits to buy your own places. From what you say there is potentially as much as £400,000 equity? That should go someway to putting down a fair deposit ? Get a cheaper house with a smaller mortgage? New start for everyone. I'd try not to involve parents just in case it goes wrong and they are approached to pick up the bill. They might not mind but I know I'd feel uncomfortable.
    • Lomcevak
    • By Lomcevak 19th Mar 17, 8:03 AM
    • 623 Posts
    • 3,861 Thanks
    Lomcevak
    • #7
    • 19th Mar 17, 8:03 AM
    • #7
    • 19th Mar 17, 8:03 AM
    I agree with Fireflyaway's logic on downsizing, especially if your current income is limited, but can also understand the desire to stay in the family home given the disruption to the rest of your life.

    Have you got in touch with a decent mortgage broker to see what other options might be available, e.g. for your parents to buy out the remaining equity from savings and/or pension income? That would seem like quite a clean way to do it, and you could come to an arrangement with them to take on the mortgage in some form in the future. Generally i'm against 'guarantor' loans as they can go horribly wrong and destroy relationships if the recipient then can't (or won't) pay and the guarantor picks up the bill - sadly I've had this happen close to me. It sounds like you have a strong relationship with your parents so this probably isn't an issue, but worrying about guarantee triggers is something you could do without as your finances settle down after the divorce.
    MFiT-T4#126, £135k to 60k: £30,494/£75,000(40.67%), 2017 MFW#11 £2,400/£10,000 (24.00%)
    £30k-in-’17#56 £7,681.36/£30,000 (25.60%)
    • borkid
    • By borkid 19th Mar 17, 8:26 AM
    • 1,302 Posts
    • 2,363 Thanks
    borkid
    • #8
    • 19th Mar 17, 8:26 AM
    • #8
    • 19th Mar 17, 8:26 AM
    Hello, I am new here so bear with me please!

    I am in the process of divorcing my husband. We are going through mediation and one option for me to stay in the family home has been proposed by my husband. It would see me having to try to afford to take on the mortgage in my name and at present I don't earn enough to do so.

    I am starting to have a look at guarantor mortgages. My parents have offered to support in whatever way they can help. Has anyone got experience of this type of mortgage? If so, the fact that my parents are both retired, how does that affect things? They are fortunate to be in a good financial situation with decent savings, very good pension income and no mortgage on their house, worth circa £1.5m. The property I own with my husband is worth around £550-£600k with a mortgage of £210k.

    Many thanks in advance.
    Originally posted by KatTee1
    My husband is guarantor on my daughter's house. She is on ESA but wanted to remortgage to get a better rate but due to her drop in income when she became ill she couldn't do it on benefits alone. My hubby was retired and the BS would only lend on a term upto his 75th birthday so I think it was 15 years rather than 25. Again we were mortgage free good pension etc. Her remaining mortgage was quite small though about 1/4 of what you're looking for.
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