Interest only mortgages - short term fix?

alowery1979

Hi,

I'm after some advice.

I have recently split with my girlfriend, however until we sell our house we're still trying to live together.
However, this is proving to be impossible for both of us.
Our house has been on the market for a few months but with no interest. We can't afford to drop the price as we would need any equity in this house to be able to afford somewhere new to live.

My ex has suggested signing the house over to me, however I doubt the mortgage company would let me take on the mortgage on my own plus I just don't think I could afford it even if they did.

I have been looking around at interest only mortgages, however not knowing much about mortgages are these a good idea for a short term fix? i.e. until I sold the house or mortgages improved.
Would I stand a better chance of getting a interest only mortgage?

We currently have a repayment mortgage for 190K & the house is currently values at 220K.

Any advice any one can offer would be greatly appreciated.

nw_man

I think it all depends on your lender, if they are willing to let you go to interest only.

Interest only is definately only a short term solution, long term its a disaster.

As for you going it alone, that again is down to your lender and what criteria they operate on. They would need to be satisfied that you could afford to service the loan on your income alone.

If neither of those options materialise then you have 2 routes : stay together in the house as you are or drop the asking price considerably to get a quick sale.

Do yourselves a real favour though..... make sure you dont miss a mortgage payment. Even though you are no doubt at loggerheads with your ex, missing a payment is going to seriously damage you both.

Rafter

If you can get any equity out of the property by dropping the price I would do it.

General view is that house prices have at least another 10% to fall and won't go up for several years.

So if you do sell and rent for a while and save, you would be better off than trying to take the property on by yourself.

Another alternative would be to get a lodger to help with the higher mortgage payment?

R.