Help needed ASAP

shoegal84

In May 2007, my partner and I bought a one-bedroom flat for £83,950. It was a dream, lovely location, great starter home. We took a 3 year fixed rate mortgage. However, it was not long until things turned sour.

The relationship is over. I am now looking, as one of the owners, what would be the solution which incurs the least amount of debt. I know to sell the flat (with the economic downturn and the charges and solicitors / estate agents fees) would leave us with a large deficit. I would not be bothered by this apart from the fact that I am worried that when I tell my partner that it is over that he will stop paying his half. I have consulted my mortgage advisor on this who says even if i pay my half of the debt, if he doesn't pay his, "the black mark" will still go against me as it is a joint mortgage.

I have considered trying to rent it although I know this is not strictly allowed in my mortgage as it is not buy to let. It is a one bedroomed flat so I am unable to get a flatmate. I am unable to manage the bills on my own.

I have considered staying there with him until the fixed rate is up but I don't know if I can stand him until then as he is abusive and unpredictable. The reason I considered staying was because I don't want to end up bankrupt and have him ruin the rest of my life.

Does anyone have any suggestions? Can anyone tell me about bankruptcy and the effects it would have on my life? Is there a limit to how long a CCJ / bankruptcy order effects you?

I would appreciate anyone's suggestions.

Thanks,

Shoegal

poppysarah

Sell it. Move on.

If he doesn't want to sell then you will have to take legal advice

RAS

Welcome.

You are in a considerable bind. You probably need extra advice as to the precise legal agreement between you and OH and the penalties for terminating the mortgage early.You probably need legal advice anyway as to your options and your personal safety, so I would recommend a visit to a solicitor with your paperwork.

Regarding bankruptcy, have a look on the BK forum wich is here http://forums.moneysavingexpert.com/forumdisplay.html?f=76.

Bankruptcy would prevent you getting consumer credit for a long while but mortgages are still an option. In certain instance it can reduce your options when buying things like insurance as well.

PasturesNew

If you want to stay in it:

2nd and 3rd job?

No idea how old you are - and the older you get the harder it gets to obtain jobs and to keep up the pace, but when I was about 21/22 I had a full-time job in an office, an evening job doing telephone canvassing for double glazing and a weekend job as a garage forecourt cashier.

If you want to leave:

You can force him to sell it and meantime get a 2nd and 3rd job and save, save, save like crazy to pay all the bills that will come out of it. Assume the worst case scenario.

McKneff

a friend of my daughter is holding down 3 jobs, same situation as you.
paid of the OH and is desparate to hold on to the property.
Maybe you think its worth it in the long run.

Respect for the grafters in this world:T

GDB2222

Bankruptcy is not great. Having a millstone of a debt around your neck is even worse. What does your ex want to do?

silvercar

If he is abusive and unpredictable, can you face staying until May 2010, just to avoid debt?

Don't confuse repossession and bankruptcy. If repossessed the lender will chase you (both) for any shortfall. Bankruptcy would get rid of the shortfall. Both would be big black blobs on your credit rating. Bankruptcy lasts for 1 year but is noted on your file for another 5. In repossession, the lender can chase you to start paying for the shortfall for 12 years after the repo'. The repayments can last a lifetime (though generally they settle for a lump sum).

Either way you would be unlikely to get another mortgage for a few years and your credit rating will be hampered.

I have considered staying there with him until the fixed rate is up but I don't know if I can stand him until then as he is abusive and unpredictable. The reason I considered staying was because I don't want to end up bankrupt and have him ruin the rest of my life.

At the end of the day its only money; if he is that abusive you owe it to yourself to leave.

poppysarah

Bankruptcy isn't ruining the rest of your life if you don't have one.

shoegal84

He called me yesterday morning (I have been staying with my parents for 3 months) and told me he can no longer afford the property so I have resigned myself to selling it. However, he has rang me today and begged me for yet another chance. I feel totally torn; just because I can see his bad points doesn't mean I don't have feelings for him (unfortunately).

I don't know what OH means....

Thanks everyone for your comments. I will be consulting my mortgage advisor this week.