Need advice before proceeding

Anastasia

Hi everyone. I would be really grateful for some advice.

I separated from OH 2 years ago and went onto an interest only mortgage with my bank Alliance and Leicester. That was a great decision in retrospect. Mortgage is 45,000. Now we are soon to be divorced I feel the time may be right to buy him out. I don't have to - my youngest is only 12 - but I want to look into it and see if it is possible.

My bank do not know that we are separated and my question is this:
If I go to see them to discuss how much I could borrow etc. does that alter anything? Does the fact that he doesn't live here change the terms of the mortgage? Would I still have the option of carrying on with the mortgage as it is if I couldn't afford to buy him out yet?

Basically I am worried that they are going to say 'I'm sorry but you can't have that mortgage any more and you have to remortgage anyway'. That would presumably mean a higher interest rate with a different deal. We have been with A&L for 14 years. I am looking to borrow a further 50,000.

Many thanks, Ana

bryanb

I'm no expert but you need to give more figures, salary, House value etc, Is OH paying his half?

Anastasia

Salary 30,000. House value approx 145,000. OH pays maintenance for the children, not the mortage.

silvercar

You will always have the option of continueing with the existing mortgage. Your ex remains jointly liable for it, so the lender won't be worried that he has moved out.

You would be asking for a mortgage of 95k, low LTV. the lender may agree. Why are you giving him half the equity if you are providing a home for the children? Generally the split is unequal if one partner has to house the children.

herbiesjp

In relation to the "can i get the mortgage on my own question" - the answer is yes.

That is asuming there are no other financial commitments to take into account and you have a good credit history.

How accurate is the property value you have given? Where does it come from?

Generally under 75% LTV you should have access to good deals.

Have a word with a whole of market adviser who can also search direct deals for you as they should be able to help

Anastasia

Thank you all very much.

Property value is from last year's average of three estate agents.
I am giving him 50% because I am keeping my pension which is larger than his.

My other dilemma is do I buy him out now or do I wait. I am dreading the higher debt but waiting is just putting off the inevitable.

I thought going to A&L first was a good option as they know me. Have very good credit rating.

Have to go to work now but will log on tonight.

Ana

herbiesjp

Definitely see what A&L can offer, but check out other lenders as well, as they should be able to help also.

You just need to find the best deal for you based on your circumstances.