Repayment to interest only?

jodenice

My boyfriend and I bought a flat two years ago and have recently fixed a 5 year fixed deal repayment mortgage (bad move in hindsight, but there you go!)

Sadly we are splitting up. My boyf is going to stay on the mortgage (in name only) as if they assess my wages singly and don't think I could afford it, they could refuse me and I'll have to sell it and we'll both be left with a debt due to negative equity. Plus the penalties for leaving so early are very high.

I can afford the mortgage payments on my own, however, its going to be very tight. How likely is it that I could switch to interest only for a short period whilst i sort out the finances? and what reason could I give the mortgage company without indicating that my boyf has left? Or should I just struggle on?

maninthestreet

We don't know who the lender is, nor what amount is outstanding on the mortgage, the original LTV, nor the current value of the property.

jodenice

I didn't know that that would make any difference.

Lender is Accord, amount outstanding is about £123000, I don't know the current value - I just know they have all gone down in our area.

sammyjammy

It certainly does make a difference, its unlikely that Accord would let you go IO in any circumstances IMHO but if you're close to negative equity you can pretty much guarantee they'll say no, sorry. You could try a few of the individual boards for money saving, cutting back etc which might help you

beecher

Shouldn't your boyfriend be continuing to contribute towards the mortgage? Think you need professional advice on your options - you could be in negative equity for years.

jodenice

I've already scaled back on everything I can, my budget has been trimmed beyond all measure. Will just carry on then, thanks for the info.

dimbo61

Tell your Ex his name is on the mortgage and he is equally responsible for the mortgage as you are.
If the property is repossed his credit history will go down the pan and he will owe thousands to the lender.
They will take action to recover the money and may both of you bankrupt in order to get there money back.
He needs to pay his way!
Can you RENT A ROOM government scheme to bring in extra money
Go and see a solictor you dont want to struggle for the next 4/5 years for your ex to demand half of any equity in the future when he has paid nothing for 4/5 years.

ninky_2

Be VERY careful. If your boyfriend is still on the mortgage and the deeds but you continue to make ALL the payments, he will continue to own half the property. This might not seem a big deal now but should he decide to hook up with someone else and / or they decide they'd like their share, they'd have every right to it under the law.

Sorry if this sounds unpleasant but your split may be amicable now but people can change. Unless you have stuff in writing you are on dodgy ground.