Mortgage nightmare, can anyone help?

Loop

I need some advice from people here.

My boyfriend needs to remortgage desperately.

His deal came to an end this month, and for various reasons only found out today that his mortage is going up.

He owns the property with his ex wife, and neither of them live there anymore, he rents and she lives with her new partner.

The property will be let from 19th september, because he couldnt sell.

It is currently on an interest only deal, he is with Birmingham Midshires, they can offer him a saving of about £20 a month on a new deal but it would cost £2000 to swap.

The property was bought for £250,000 with £215,000 on the mortgage. It is now on the market at £299,000, and outstanding is about £210,000.

He has great credit and has 3 other business mortgages, and the buinesses are flourishing (luckily) if this goes towards anything. This also means hes self certificating!

What else is on the market he can change to? We are clueless but I want to help him as £1300 a month is killing him as the ex pays nothing but he cant afford to buy her out.

If anyone can point him in the right direction that would be great.

I forgot to ask him what the interest rate is, ill add this later when I speak to him again.

Thanks

Lou :A


He says the interest is 1.9900 above BoE rate. So im guessing thats 6.99?

silvercar

If the property is let he will now need to be getting a BTL mortgage. I don't see why he needs to self cert, the amount of mortgage will be based on the rental income and the property value.

misscharlie

If he wants to sell and hasn't sole for £299 surely its worth trying to reduce it as there is more than enough equity to allow him to do so?

Loop

Hes already reduced it £25k it was on for £325 1st January, and hes gradually reduced the price, 3 estate agents (and a friend who works in the industry) beleive its at the right price now, but no one in our area is buying, there sale signs everywhere.

He needs to recover some expense asap, and renting it is the only way forward.

The other issue is that he put in the £35k deposit, n the ex will take half the profit when it sells, even though she never contributed. He needs a decent amount to put down again when he buys, or the last 18 years working his way up the property ladder will b e for nothing.

He would consider any offer, but no one is proceedable, even when they would like to buy it.

poppy10_2

When did he buy the property?

neverdespairgirl

Loop wrote: »

Hes already reduced it £25k it was on for £325 1st January, and hes gradually reduced the price, 3 estate agents (and a friend who works in the industry) beleive its at the right price now, but no one in our area is buying, there sale signs everywhere.

It's not the right price, if no-one is buying it.

However, if he wants to rent, he'll need a buy-to-let mortgage, which will typically mean he'll need a 20 % to 25% deposit.

herbiesjp

His ex wife is currently on the mortgage

So is he taking off the ex wife or is she staying on the mortgage?

Either way the ex wife will have to sign for the new mortgage deal or sign to come off the mortgage/deeds.

As stated above - no he does not need to self cert - he may need to provide proof of minimal personal income but that should not be a problem will it?

What rental income will they be getting?

Although even if they do change mortgage - the lower rates on offer, will have the higher fees as you have seen

lynnexxxo

If the mortgage is for 210, and he put in a 35k deposit then what about selling it for 245?

Its not as crazy as you think. Ok so at the moment he would like to get 300 for it. That would make him a 300-210-35 = 55/2 = 20 odd k profit(plus his 35k deposit). You are saying the mortgage is 1300 per month - excluding rental income thats only 15 months mortgage.

oh and depending on the circumstances he'd have the pleasure of seeing the ex wife get diddly squat.