Mortage with a 'break up' dilema

Reason123

Hello


My partner and I broke up around 3 months ago.
She moved out and is staying with one of her friends.


Neither of us could afford to run the house on our own but as i earn the most it was agreed that i stayed. She contibutes a 3rd of the mortgage and i pay the rest + bills.


She pays 300 i currently pay 626 + bills


Our deal runs out in oct. And as we are in negative equity will switch to the svr.
At current rate we would be better off by nearly 300 a month.


Problems is i put 12k of debt into the house. Although have now spent close that in double glazing/drive way etc so i feel its even although she still feels i owe 12k more of the debt than she does...


we bought the 'run down' place for 143k and have a mortgage of 138k plus loan of 20k which runs alongside. (northern rock 100% + mortgage deals as of 2007)


supposebly the house in good condition should have been 'worth' around 160k back in summer 2007 in good condition. A house a few along of identical shape/size sold for 157k a month after ours. We own within the M25 in Thurrock Essex.


So my question is do we sell now?
IE take whatever negative as split personal debt?
And I would have to rent a place on my own.
But this chapter of my life is over?


Or contact Northern Rock, ask to rent the house out and wait till market recovery?
I will then have to rent and we both will prob have to subsidize the mortgage?


Or continue as we are? She contributes. I hope that the current svr of 4.54% interest rate doesnt increase past my current 6.95% as i wouldnt be able to afford.
Whilst riding it out and sell when the market recovers?

MONDYMAN_3

First get the house properly valued..it's free then you'll have a definite answer to either cut and run or stay the course.
The replies you get will obviously help your decision but ultimately it's your decision to make ( i sense you've made it allready tho m8 and are just looking for agreement )

As to the interest rates i can only offer this...you cannot get out of a recession by printing money it's basic economics 101...it does not work. It leads to inflation and then interest rates ultimately have to rise to counter said inflation.
The only thing no-one is sure of is the timeframe it could be 6-12 months maybe longer before it all filters through and rates might rise slowly..but one thing is for sure this recession is going to go on for the Uk for a few years as we have no manufacturing base to pull us out.
So if you stay you'll possibly have at least 12 months before the rates rise but then the housing market will go through round 2 of the crash...it's catch 22.

It really is a difficult desicion and tbh i dont think you can win either way so do what feels right for yourself m8.

poppy10_2

Reason123 wrote: »

she still feels i owe 12k more of the debt than she does...

You are both equally liable for the whole amount of the mortgage. However if she decides to simply stop paying you will both end up with your credit ratings being trashed - it's worthwhile trying to negotiate with her.