Help / Advice required regarding a Remortgage

JONNYWISHBONE__01

Hello to all

I am after some impartial advice if anyone can help. This has probably been asked numerous times in the past but here goes ……

I am currently going through a separation; we purchased a house for £400K 2 years ago and took out a 250K interest only mortgage. This deal has now expired and we are currently on the SVR. Our house has now actually been valued 20K less than when we bought due to the current economic climate etc. I basically put all my savings into the purchase etc and my partner actually put in nothing.

I have tried to get a mortgage on my own but cannot find a remortgage that suits my salary multiples (circa 50K / annum). My partner has stated that she is willing to leave her name on the mortgage to enable me to stay in the house and pay another 2 years on an interest only mortgage. We both know the consequences if one of us would lose our jobs, etc. She is also willing to go into rented accommodation for 2 years until we sell the house to enable us to get the initial outlay back or better.

Basically what I want to know is :-

Is it a good idea to stay in the house for another 2 years in hope that the market picks up and the value equals or improves on what we paid on an interest only mortgage?

Should we sell the house and get something smaller?

Could anyone please help with both the pros and cons?

Thanks in advance

Robert_Sterling_3

Houses may go down in price over the next two years.

beecher

Who valued the house at 5% less than it was 2 years ago?

I'd sell and look for somewhere smaller. You're not paying off any of the capital and prices will probably go down further. If your house isn't already worth nearer to £300k than £400k I'd be suprised. And I would be astounded if the value goes back up to £400k within 2 years.

Robert_Sterling_3

There is a shop in Hornchurch Essex which does clairvoyance and Tarot card readings.
It has now closed due to unforseeable circumstances.