URGENT Mortgage Advice After Split !!

Hol084

I am looking for some argent advice! Cut a long story short me and my ex boyfriend bought our flat in Dec 06 for £120’000 on a fixed rate paying £440 a month (which ends Dec 08) I put down 3500 and he put down 1000 with my dad loaning us both 7500 total 12000 deposit. Mortgage therefore for 108’000. We split up a few months after moving in (yeh I know don’t ask but mutual decision) and since I have been living in the flat paying all bills including our building factors while he has been paying me £220 his half of the mortgage. We planned to sell the flat in 08 as if we sold in 07 would have to pay a 3% of mortgage early repayment factor ( yeh I know probably a bed idea the way the market has gone)

The flat has been on the market since June so far having 17 viewers but no offers as of yet. It is on at 122500 and we can’t afford to drop the price any lower without owing money. My question is do you think it would be a bad idea for me to try take over the whole mortgage? As it looks like the flat may not sell any time soon. At present I do not earn enough to get a mortgage alone and my family discussed putting my brothers name on the mortgage to allow me to get a mortgage while I take over full payment of the mortgage each month, which would really stretch my finances to do so. (Can’t take in lodger 1 bed flat) I am reluctant to do this as I feel I would then be solely responsible for the whole debt to the bank and the 7500 given to me by my dad. The way the market is going I feel the flat may fall into negative equity. My ex wants out ASAP and my mum is putting pressure on me by saying it is morally wrong for my ex to pay half while he is not living there and hasn’t been since march 08. I am also concerned he may just stop paying his half of the mortgage, as it is both our names what would I still be liable for his half?

Also do you think we would get another mortgage with a different lender for 108,000 seen as the flat hasn’t sold and we were on a interest only payments, I ideally want to move onto another interest only mortgage so the repayments are as low as possible.

All advice welcome !

_Andy_

Hol084 wrote: »

I am also concerned he may just stop paying his half of the mortgage, as it is both our names what would I still be liable for his half?

You are both liable for the entire amount.

Also do you think we would get another mortgage with a different lender for 108,000 seen as the flat hasn’t sold and we were on a interest only payments, I ideally want to move onto another interest only mortgage so the repayments are as low as possible.

Not on an interest only basis - assuming you have no investment vehicle.
Your main issue is LTV - really if it's not selling at that price a mortgage valuation might say its £115k, even less - meaning hardly any deals available to you and certainly not on an interest only basis.

andrewmp

It sounds like you are in a horrible position. I hope it all works out for you.

One bit of advice, don't chase the market down. Price your flat lower than the others for sale in the same block/area.

What interest rate will you move onto when your fix ends (which mortgage company are you with). Will it revert to SVR?

Good luck with it all though, which area is it, could you possibly rent it out to cover your payments and move in with your parents or something?

grogdog

also ,i cant see how they will allow your brother unto the mortgage, one bed apt, residential mortgage for brother and sister:eek:

Hol084

I am with the Halifax and the interest only deal ends this Dec,

i have thought about renting dont think the rental would cover the mortgage, i also cant move in with parents as they live in Edinburgh and i work in Glasgow the cost of a monthly train pass for the commute is £300 !

andrewmp

Hol084 wrote: »

I am with the Halifax and the interest only deal ends this Dec,

i have thought about renting dont think the rental would cover the mortgage, i also cant move in with parents as they live in Edinburgh and i work in Glasgow the cost of a monthly train pass for the commute is £300 !

Does it revert to a repayment mortgage as default? Will it be on their SVR or will you still have a fixed interest rate?

How much will the repayments be per month and how much do you earn after tax per month?

lisyloo

my mum is putting pressure on me by saying it is morally wrong for my ex to pay half while he is not living there and hasn’t been since march 08

Well I don't think your mum is correct (or helful or supportive grrr!!)

Your ex is liable too !!
Your ex is party to buying an asset that has fallen in value.
It's not right that he should jsut "walk away".
I'm not saying he is trying to do that, but this is a joint problem that you both have to share.

andrewmp

lisyloo wrote: »

Well I don't think your mum is correct (or helful or supportive grrr!!)

Your ex is liable too !!
Your ex is party to buying an asset that has fallen in value.
It's not right that he should jsut "walk away".
I'm not saying he is trying to do that, but this is a joint problem that you both have to share.

Exactly, he wouldn't be walking away if prices had gone up I bet!

Hol084

andrewmp wrote: »

Does it revert to a repayment mortgage as default? Will it be on their SVR or will you still have a fixed interest rate?

How much will the repayments be per month and how much do you earn after tax per month?

The repayments are going to be around 650 from what i can work out i earn 1280 a month after tax