Ok so it looks like we may rent out our property but it won't cover mortgage

papermoney

Ok I will try to answer questions but forgive me if I miss a few - memory like a goldfish and all that.
Yes I bought a house last May in my sole name (my husband and I were going through a tricky patch but thought the move may help - it didn't we split perm and divorced, we had been on and off for a long time) I met someone else not long after. I fell pregnant - it was planned, very much so.
My partner already owns his house (well mortgaged but has equilty in it - even in todays market.
When I bought my house i knew the mortgage was high - it was 100% so of course it was high but I could afford it on my salary and at the time I honestly thought my marriage had a chance of working.

We can take 20k out on my OH mortgage to cover a shortfall but unlikely to be able to take more.

So as I have pointed out before I can afford to sell the house for 123-125k anything less I will not have the money for.

I appreciate all the advice about renting it out, and agree that it is not the best thing. It just seemed a waste to have an empty property.

As also stated I can afford the repayments until at least March next year after that it will be slightly harder but still do able. I doubt very much that I will be repossessed because I can cover the mortgage and CT at 50% etc etc.

I know having a baby will not be easy, I have a 9 year old and a 2 year old stepdaughter so i'm aware that a baby is not a cheap and easy little person to have a round.

So in short, thank you for your replies, I do appreciate them. After what everyone has written I agree renting is not the best option right now. Of course selling is. I understand what people are saying about pricing it right but there's no way I can sell under 123-125k - I will have no other way of getting the money. I have 20k but that's it.

The rentals round here for my type of house range from £500-£700 they always have done. I didnt buy the house with the intention of renting it out so I never took much notice of figures before. My mortgage is high but that's the price you pay for having a 100% mortgage (I know this and always have done) but as i've said I didn't really expect my marriage to fail - maybe that is where I also had my head in the sand, I just tried everything I could to try and make it work and at the time it was moving to this house. It didn't obviously help.

My ex is not responsible for any shortfall as he was not on the mortgage, he never contributed in the marriage he won't now lol.

Thanks for all the advice.

papermoney

Rachman wrote: »

Can I ask a question - rental value is £450ish a month - your mortgage is £900 a month on it. Rents have not fallen. So please tell me how you thought it was a good idea buying it/keeping it/owing that much on it when the mortgage (repayment) is twice the rent ?
What on earth possessed you to keep it - future appreciation ? Really ?

I am also a bit suss about what your background says

you bought it last year with your husband, you are now divorced this fast and have already moved in with someone else and having his kid - I don't want to sound like Victorian Dad, but bloody hell, either you don't hang about or something's not quite right.

I hope my previous post answers your question. But felt the need to reply. Maybe I don't hang about but after a horrible marriage which failed despite my best efforts, when I found a man who I fell in love with and became the centre of my world, I went for it. Maybe it's quick but I decided that life really is too short. I wasn't going to let a moment pass me by. Getting PG came quick but after many miscarriages in the past and being told by consultant after consultant that getting PG naturally wouldn't work, we thought it would take a lot longer than it did - fate? mother nature? who knows? but I am very happy about the fact

Sorry if it sounds suss, honestly it's not. We're also planning to getting married next year. It will be just over a year from my divorce finally coming through - yes quick but so very very right in our heads and minds.

nixinix

Can I say congratulations on the pregnancy and 'new' relationship - I really hop eyou find a buyer and I can understand why you contemplated renting but I think you are right not to.

I know you cannot afford to drop your price but you will struggle to find a buyer otherwise - unless you can find another way to make your property as attractive as possible. I wish you all the best of luck.

Rachman_2

This is going to depend on the security of your job and whether or not you are happy that all credit goes through your partner - but financially, your best thing to do is to simply tell the lender you are going to default on the p-mortgage and go bankrupt and go voluntarily bankrupt. That way it's done and you will be able to concentrate on other things in life.

I think it's morally wrong, as you can afford to pay it even though it was clearly a daft decision (with hindsight) to buy it) - but that's not the point - it's what you think that matters. I have to say, I admire your integrity in wanting to pay off the negative equity - I think it's chucking good money after bad - because over the period of your mortgage, it will cost you a lot more than £20K to pay off, but the sentiment is right. Misplaced, but right.

TBH, I don't think you've much hope of selling it for anything above the stamp suty threshold at the moment (£125K isn't it) - and little chance of selling it at all given the stupidity of this government. Is your ex-husband still on the mortgage - if it's joint and you go bankrupt, that will land him in all sorts of trouble as it's almost always an event of default to do so and he will be liable for the lot.

The medium term effect is your name in the paper and finding it expensive to get credit in your own name.

I'd be thinking long and hard about how much my integrity was worth - more than £20K and years of financial hardship and not sleeping for worrying ?

papermoney

The house is in my sole name only. So I am responsible for it all - which is fair enough.
I will pay the house off - I don't think I could live with myself if I didn't try. It is afterall my mess no one elses.
My OH is happy for the money to come from his equity as he believes we are in this together (I am a lucky person I know).
I don't think I know enough (actually anything) to see if bankrupcy is for me. I don't have any other debt other than the mortgage, I have a very good credit rating and owe very little on credit cards.
I do have a loan but that is in my parents name.
Food for thought.
Thanks

papermoney

UPDATE

Just thought i'd update to say that NR rang me back and said that I could have their permission to rent below mortgage if I could provide written evidence of my salary for the next 12 months. They did say that to have everything done properly I would need to pay a fee to get their written word and a underwriter would decide if my interest rate would go up.

I did tell them this would now not be necessary as I was not taking this route.

Thanks for all the advice.

Trollfever

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