Tricky decision

wilt_2

MY husband and I bought a house 18 months ago for 205K and then 9 months ago we separated. Our mortgage is 200k. Unfortunately it is now only worth approx 185K. I took over the mortgage payments a couple of months ago and I am managing with a combination of benefits, part time work and maintenance for our 3 children. However my husband switched us to an interest only mortgage a few months ago and I cant see how I am ever going to be able to afford to switch back to repayment because nobody will give me a mortgage on my salary. My husband has said he will be signed off mortgage but I cant accept this because noone will give me a mortgage, so he has agreed to stay on it for now. I am thinking of moving to a new part of the country for a fresh start and my husband has offered me £15k to come off the mortgage and move out. This would mean I could rent in my new location while looking for full time work. Once I had a proper job I could get on a shared ownership scheme. I am a teacher so I hope this wouldnt be too difficult. What do you all think?

dwsjarcmcd

Personally I think see a solicitor! The law will always favour you with 3 children so don't just accept what your husband says but determine what your rights are. He can't do anything about the house without your agreement.

CLAPTON

if indeed the house is worth less than the mortgage
and your OH is to transfer the mortgage to himself
and he will give you 15k then that seems a good deal as far as the house is concerned

however presumably he is paying you support for the children etc.?.

best to see a solicitor

wilt_2

I have seen a solicitor who says ive got nothing to lose really especially as I would like to relocate. Im just worried Im doing the wrong thing financially for the long term. In five years time I guess I will still only own about 50% of a new property in my preferred area instead of 100% of one here. Although I raelise I dont actually own any of it at the moment.

wilt_2

Thanks please see my 2nd message

Gorgeous_George

Sounds like he is making an extremely fair offer.

You get your name off the mortgage and £15K in the bank - sounds a bargain to me. Of course, you could see a solicitor but this may see your former OH retract the offer so tread carefully.

If he is the father of the three children, it is generally accepted that he should pay 25% of his net income to support his children. It's 20% for two and 15% for one.

If he lives elsewhere, it is reasonable for him to want his name off the mortgage.

GG

wilt_2

Thankyou.Yes I think it is a fair offer. I'm just not sure if I will be better or worse off by the time I get accepted onto a shared ownership scheme, find a jobetc. It would obviously take me years to be able to buy 100% of a house whereas at the moment I am actually in one which I may be able to get a mortgage offer on when I get a job. There seems to be so many scenarios and I am confusing myself!

narced

You're better off taking the £15K and finding somewhere to rent for the next couple of years than staying in the current house in these times. The house may be worth very much less than 185K in a year or two, and in a falling market an interest only mortgage is far worse than paying rent.

Check if the £15K affects your benefits, It it does, can you get it paid to e.g. your parents so its does not and they can hold it for you.

Gorgeous_George

narced wrote: »

Check if the £15K affects your benefits, It it does, can you get it paid to e.g. your parents so its does not and they can hold it for you.

Not the place to encourage benefit fraud.

GG

space_rider

As long as you are working and claim tax credits then its only the interest you get on savings that is deductable. If you end up on income support then I don`t think you`ll be able to claim it with that amount in savings.

wilt_2

Thank you everyone. This is my first time on here and its very useful!