Removing Ex off mortgage Need Help!!

angeljay

Okay, have been through this a few times but I have run out of ideas or options and I don't know what to do anymore.

Purchased a house with now my ex May 2006 for 84K took out 100K to do repairs to property etc.

Oct 2007 ex moved out since then I have been paying mortgage on my own IO so only at about 97500K

Ex wants gone of the mortgage and to be honest causing me a lot of hassle, I want him gone as well. I want to move on now and have the house with my name. I am at my wits end very deppressed with this and have tried everything I can think of.

NR will not transfer mortgage to my name, unless i lower it to 71K i have explained the situation to them and they said no regardless of if i have been paying it alone.

I dont think anyone else will look at me because I just dont earn enough and possibly could be in NE.

I have phoned National Debtline and they have basically said I am making all my payments at present to Credit cards etc and should just keep doing that. My record is completly up to date.

I wanted to change the mortgage back to repayment whilst I am on the SVR and pay off some of the loan. My ex won't agree to this basically he wants off and wont sign anything as there is a dispute on my account with NR they wont do it with just my say so.

I tried a family member but due to him having a mortgage of his own they will not look at putting him on the mortgage. Also when rates go up and I cannot possibly afford monthly payments it would not be fair on him to damage his record.

I have read remortgage with another company the secured loan part, and get an IVA on the unsecured. My salary is £19000, I have 5K of credit cards. Secured part of mortgage is 74K about!

As my ex is on benefits he cannot afford any sort of contribution.

I am at my wits end, reading for handing keys back but I dont want too lose my house I like the house and settled there but can't take this hassle no more from my ex its been over a year now and I just want to move on with no ties with him.

Please help what can I do?

angeljay

I would try and sell the house, but i cannot afford to pay Solictors, EA, Moving fees then find a months rent and a bond as well without getting myself into even more debt with my credit cards.

I know you may say pay all I can towards mortgage but this will still take years to pay it off or lower it to a feaseable amount.

Can I MAKE the ex paying anything towards the unsecured part if I take on the secured part? Would a bank do that considering I have a joint unsecured loan?

Mrs_Bumble

Are they prepared to put the secured mortgage into your sole name if you reduce the balance to £71K and will the unsecured loan then remain joint?

While your on the SVR can you afford to put money aside to be able to reduce the mortgage balance in a few months?

You say that if interest rate go up, that you won't be able to make the repayments are you in a position to sell and just cut your losses? Check the house value on a site like https://www.zoopla.co.uk.

If you switch to repayment whilst the mortgage is on SVR that is fine but what will you do when interest rates go up, they won't switch it back to interest only then.

Can you rent a room out?

Have you stopped spending on the credit cards?

If you go onto and IVA your credit history will be shattered.

If you hand the keys back in it will be like having the house repossessed and your credit history will be desimated.

Mrs_Bumble

In answer to the second post, both debts are joint and so your ex is jointly and severally liable but if he hasn't got the money they can't make him pay can they. Because of the risk they are unlikely to allow the switch to sole name as their interest is best covered by joint applicants.

SouthCoast

Reading back through your posts this has been going on for well over a year.

Time to start posting on the Bankruptcy Board?

http://forums.moneysavingexpert.com/forumdisplay.html?f=136

angeljay

Mrs_Bumble wrote: »

Are they prepared to put the secured mortgage into your sole name if you reduce the balance to £71K and will the unsecured loan then remain joint? All the letter states is that I dont earn enough to comfortable afford the loan if I reduce the outstanding balance to £71K.

While your on the SVR can you afford to put money aside to be able to reduce the mortgage balance in a few months? Only say £40-£50 a month if that, i do try and have a night out say once a month etc.

You say that if interest rate go up, that you won't be able to make the repayments are you in a position to sell and just cut your losses? Check the house value on a site like www.zoopla.co.uk. - That says house worth around 82K now but I owe 97K

If you switch to repayment whilst the mortgage is on SVR that is fine but what will you do when interest rates go up, they won't switch it back to interest only then. - I would have to talk to NR explain the situation and state I cannot afford the payments and work out a payment plan.

Can you rent a room out? - Have a new partner now, they have poor credit so cannot go on mortgage though.

Have you stopped spending on the credit cards? - Yes and paying £120.00 per month towards them.



If you go onto and IVA your credit history will be shattered.

If you hand the keys back in it will be like having the house repossessed and your credit history will be desimated.

Also had to take out a loan recently to pay for a new boiler, as the last one was leaking Carbon Monoxide!!!

angeljay

SouthCoast wrote: »

Reading back through your posts this has been going on for well over a year.

Time to start posting on the Bankruptcy Board?

http://forums.moneysavingexpert.com/forumdisplay.html?f=136

What would that help, i have spoken to National Debtline and they just said keeping paying as I am at present.

Mrs_Bumble

The mortgage that is secured on the property is around £73K you said didn't you? the other portion the loan with NR is unsecured.

So based on the property value you could perhaps put the property on the market and clear the mortgage and have some towards your share of the loan, which would reduce it and maybe NR would allow you off the unsecured loan part?? The biggest headache would be gone though, the mortgage?

I don't see any advantage at all to switching from interest only to repayment because you will just put yourself in a precarious positin when the rates come back up.

I would put the property on the market and hope to sell for around the estimated value and cut your losses and then repay the unsecured debt that you have accumulated. You would have then cut your ties with your ex.

Talk of repayment plans, IVA, handing the keys back in, bankruptcy this will shatter your credit history, making it near impossible to obtain any future credit which includes monthly contracts such as phone.

It appears that there is enough value in your property at the moment to cut your losses, get rid of the mortgage, get rid of the ex largely and then work on your unsecured credit debts.

beecher

You say you have a new partner, but do you still have a spare room you could rent out? Save up the rent to give you enough money for fees etc and then sell up, keeping on the unsecured loan (if this is possible - don't know how they work).

If your partner has moved in hasn't this freed up some money? Have you posted on the Debt free Wanabee forums - posting a Statement of Affairs will allow people to give advice on where you can cut back, ie sell car/cancel gym/get rid of sky.

angeljay

However the unsecured part is also in both names, my ex is on benefits so they wont just give him the unsecured part in one name.

I dont mind the mortgage, I like the house but it is bringing so many worries.

I have even looked at quick sale companies!

Also the unsecured part of NR will go up by 8% on top of their SVR if i move the mortgage!!!

I also cannot afford HIPs, solictors, EA to sell.

DD2_2

Can you look at taking in a lodger to help save up enough money to either pay down your credit card debts or to build up enough savings to pay for the house sale? You're allowed to 'earn' upto £4,250 a year completely tax free via the 'Rent a Room' scheme. It would be a pain having to share but at least it gives you some options financially.

As far as the mortgage, keep it on Interest Only while your OH is still on the mortgage as he will be entitled to any capital payments you make. As you're unable to take him off the mortgage at the moment, and unable to get off the SVR rate the best thing you can do is to ignore him for the time being and try and save up enough to get rid of it.

I wouldn't go down the BR route until you have tried everything in your power to raise funds to sell the house. If you do decide to become bankrupt, then you will be able to walk away from the property and leave this mess to your ex. You will also be able to walk away from the credit card debt. On the flip side, you won't be able to get credit for anything upto 6 years, will struggle to get rented accomodation (might be worth moving into rented BEFORE you become BR) and might lose your job if you work in the financial sector (or others, check with your HR department).