Urgent help with Northen Rock!!!!!

D_Bridgeman

I have split up with my ex and as I am the main bread winner I have applied to take the mortgage on solely.
The remaining mortgage from Northern Rock is £174,200
The current value of the house is £149,995, the ex will (rather generously on my part) clear her liability on the home by paying £10,000 if I get the house.


Northern Rock have declined my application based on the fact that I either raise £19,000 in total or earn more than my £34,500 salary.


NR know that I have overpaid my mortgage for 6 months and that I can take on this mortgage because...


Fixed rate will end on the last day in Feb 09, which will put me on standard variable. SV is a lot less than 5.75% fixed I was OVER paying on!


Can they force me to sell the house?
Should I send them the keys and stop paying the mortgage?
Or with my student loan of 15k, let them repossess the house, go for voluntary bankruptcy and book the flight to New Zeeland?


I would seriously appreciate some advice!

ceebeeby

SVR isn't less than 5.75%!!! I think you'll find it's about 6% at the mo.

D_Bridgeman

even so, the 10,000 will bring it down. Currently paying £895 to NR per month, my new estimate for SVR makes it cheaper with that deduction

mummytofour

If you go BR student debts dont get included! ANYWAY going B/R I think is silly talk right now. Basically you need 9k plus the 10 from ex- soooo How much have you been over paying by? I suggest that you work your socks off to raise the 9k, yin could challenge yourself? Just my idea anyway.

D_Bridgeman

I can't raise 9k, 5 at most. Anyway if i raise that amount they will just want more and tell me to up it again to a higher amount.

Can NR legally force me to sell, i am assuming they can't ???

Catti

Not as long as you continue your repayments. You need to sort out an agreement with your ex so that you take over responsibility for the mortgage and retain the house, she makes the lump sum payment, and you undertake to use your best endeavours to release her from the mortgage debt at the earliest opportunity (i.e. as and when market conditions allow or you have reduced the mortgage to an acceptable level), but agree to totally indemnify her until that time should she ever be chased by the lender.

clairet707

ceebeeby wrote: »

SVR isn't less than 5.75%!!! I think you'll find it's about 6% at the mo.

Er wrong....

NR SVR is currently 5.34% - I should know as thats what Im paying on it, we still havent heard whether NR will be dropping it again with last weeks base rate cut..