Mortgage Advice Needed

Kesca

Hi everyone

I am in a weird situation. 2 years ago I bought a house with my partner on a 5 year fixed rate mortgage, however last year we broke up. We thought we could live together but to be honest I really need to move out and get my own place. The dilema is he doesnt want to sale the house as he really likes it but he also isnt able to buy me out for 2 reason but mainly cause of the fixed rate mortgage, and to be fair I woldnt want to make him leave a home he likes.

The problem I have is I really want to buy my own property rather then renting, which I can afford. But am not sure how I would go about getting a mortgage, considering my name is still on the this one. I would need 100% as all my money has been tied up and I dont have enough money for a deposit yet.

If any one could help or has been in a similar situation then your words of wisdom would be welcomed

Thanks.

Kez

Tiddler_2

Hi Kesca,

It is not currently possible to obtain 100% mortgages as no lenders are offering them.

Also, whilst you are still named on the mortgage you are still responsible for the full mortgage payments and so, depending on incomes it is unlikely (though not impossible depending on circumstances) that you would be able to get a new mortgage on another property.

The fixed rate in itself shouldn't be an issue for transferring the property into your ex-partners name as he could continue with that deal with the lender - the issue would be will the lender let him take the mortgage on in his own name, and could he afford it particularly if you wanted some money out of the property.

hydsta

Hi,

As Tiddler said, even if he could buy you out, the lender may not agree to release you from the mortgage.

Whether you could buy a second property would depend on your income and your ability to service your original mortgage aswell as the second loan. Also a deposit would be needed. You could arrange to move out and rent elsewhere, but paying rent and a mortgage would in all likelihood prove too costly.

If you really cant live with him and dont want to rent, your only option would be to sell the property. However you would have to pay redemption penalties for paying off your mortgage within the fixed rate period and in the current market your property may not even sell or you might receive far less than you were expecting. Also if you did sell, would you be able to raise a mortgage on your income alone?

As already stated, the era of 100% mortgages is over and they won't be making a come back anytime soon.