Mortgage Advice Run out of ideas!

angeljay

AS you can see I have posted a few threads asking questions about the same things, but i have run out of ideas now and need advice on what my next step is, here are the details:

Bought a house May 2006, in October 2007 I split up with my partner. After speaking to a mortgage advisor he said it was not wise to try and get the mortgage in one name. So we agreed to keep house and mortgage in both names for the time being and he moved out. However now my ex wants off the house mortgage and deeds. He has lost his job and Benefits will not give him any sort of Unemployment or Housing benefit because of the house.

The mortgage was 100K took over 25 years. After he left I put this on interest only and 35 years to lower the amount and make it more affordable.

I earn 19K per year and have a lodger paying £350.00 per month.

I think the house is worth about 105K, one on street not as well improved as mine for 103K. And there is 97500K left on mortgage about 74K is secured 25K is unsecured. Mortgage with NR 5.99% fixed rate runs out 1st May 2009.

I applied to northern rock to put the mortgage in my name only, they declined this stating i did not earn enough to be able to pay off the full loan. Even though I did state that I have paid the mortgage solely since October 2007.

I have about £4000.00 of credit card debts currently paying £100.00 per month.

I have spoken to a mortgage advisor and they have said there is nothing they can do for me.

I have considered selling but my ex wants the house gone ASAP, i have also thought about leaving the property or even considering bankruptcy. I would like to keep the house but the stress is really beginning to get to me and I just want his sorted fast. I can afford the house as long as payments dont go over £550.00 per month and NR SVR is lower then my current rate.

I am stuck with what to do next, my family said they may be able to help me but wont be for another 4 months or so. Only way they can help is put possible name on mortgage but I feel bad for this and my ex is on my case nearly every day demanding something be done.

I was considering going to my bank, explaining them the situation and hoping because I have been with them 14 years they may be able to help.

I also considering just remortgaging the 75K but the mortgage advisior told me that the unsecured would then shorten to 7 year loan and go up in %. However in the NR terms it only say will go up by 8% from there SVR.

I am lost now, i have run out of every idea apart from Bankrupcy or a quick sell company.

If possible I want to keep the house or if i can move and rent fast then so be it!.

Can anyone help?

Sorry for being such long message.

angeljay

Also if i sell the house I doubt i would make enough from the sale to pay off the loan and also other fees included with selling a house. Due to the market and the lower offers that people are making.

I have even thought about trying to buy a cheaper house but was told i would still need a deposit which I dont have.

silvercar

Time to consider yourself first.

You live in the house. With your lodger you can afford the mortgage payments you want to stay in the house.

Your ex wants to be taken off the mortgage deeds. You've asked the lender, they won't agree. So this can't happen.

Your ex wants to claim benefit. This is a matter for him; not your issue. (He actually could claim contribution based job seekers allowance if he was eligible.)

I wouldn't consider selling to a quick sale company - they won't give you enough for it.

I wouldn't go bankrupt - why should you? (it won't help in any case.)

You could put on the open market and see if you can get a sale. Does this leave you with enough money for a deposit on a new place?

Your ex may want his name off the mortgage or deeds. If the lender won't agree, it can't happen. Your ex took a 25 year mortgage, unfortunately he is finding out that he can't just walk away from it.

Toughen your act; if he is so desparate to get his name off the mortgage, he needs to find some money to reduce the mortgage to a level where the lender will agree to transfer it to your name. If this can't happen then you will stay in the house, you will have a lodger to help the finances and you will pay the mortgage.

angeljay

Thank you silvercar for your reply.

My ex has said that they will not give him any sort of benefits, unemployment or housing benefit as his name is on the house. He is currently asking one of his sisters for money to live with.

I think the house is worth between 105 - 110 now. (I hope). My mortgage is 98K after payments to solicitors, estate agents, HIP etc I dont think I will get anything from the sale. Also have a help with fees payment of £1000.00 i just noticed which needs to be paid if I pay off the mortgage before December 2009.

When i changed the mortgage to 35 years and interest only he also signed the forms to agree this as NR would not allow just me to agree this.

My plan was as the SVR of NR is lower then my current rate I was looking at going back onto repayment to pay off some of the loan whilst I can afford it. As I have said my brother is looking to come onto the mortgage in the future.

I will stick to my guns, he is threatening to force a sale or go bankrupt himself and he says that if he goes bankrupt they will take the house off us anyway. I assumed if NR get there money they wont care is that correct?

Thanks again, I think I am getting myself overworked over it all to be honest!

Fliss_M

Am with silvercar, theres nothing he can do if you already pay all the mortgage. You have done what you can, but thats it. Its not up to you to put yourself in a dreadful position like bankrupcy for him. If he did it, you could buy his share for £1, that could shift it (I think I saw a post to this extent earlier) But its up to him, if he wants rid so bad

angeljay

Could I really buy his share for £1.00. What would i need to search for to clarify this information?

Also on a different note, when we purchased the house we agreed that if one of us died the house would solely go to the other person. I think its about time I got this changed so I got all of the house how would I do this and as cheaply as possible?

Thanks,

silvercar

I will stick to my guns, he is threatening to force a sale or go bankrupt himself and he says that if he goes bankrupt they will take the house off us anyway. I assumed if NR get there money they wont care is that correct?

Doubt a court would agree a sale. You are effectively renting his half off him and the rent money is going to pay his half of the mortgage. He is not contributing anything at the moment so he would be hard pushed to convince a judge to order a sale. Particularly when there are redemption penalities which will fall away in a matter of months.

If he goes bankrupt the official receiver will have the benficial interest in his half of the equity. The mortgage remains as secured loans cannot be included in bankruptcy and he will still be on the mortgage.

You could buy the beneficial interest off the official receiver. That would leave you owning all the equity and still sharing the mortgage with him.

If you can't afford to buy the beneficial interest then the official receiver could try and force a sale, but it wouldn't happen overnight. Incidentally when calculating the equity in the home, the unsecured part of the loan isn't included in the mortgage as it isn't actually secured on the property.

How he handles his benefit claim is upto him, I doubt it is as straightforward as saying that owning property means he can't claim. If it is and the only bar is that his name is on the deeds, he needs to see a solicitor and get an agreement drawn up with you to say that his name is on th e mortgage but the propety belongs to you.

angeljay

Thanks for the advice it is greatly appreciated.