Removing Ex off mortgage Need Help!!

Mrs_Bumble

On your income alone the debt that you have disclosed is not sustainable.

Your mortgage is currently on the SVR and if interest rates go up you have advised that you can't maintain the payments, then even if NR did put you on a repayment plan that is a temporary thing not indefinite and arrears acrue and again your credit history is trashed.

So if your new partner is not contributing to the expenses of the house and you can't let a room out what do you think you can do?

the majority of the Solicitors fee and the EA fees would come out of the sale proceeds.

So if you managed to sell the property now before any mortgage problems, credit history problems, then you stand to be able to clear the large part of your debt. You can then work on the rest.

There are no easy fixes here you are going to have to weigh up which options give you the best long term outcome.

angeljay

I currently live with a new partner, however they have bad credit so cant go on the mortgage. They are contributing towards the house but dont earn much so cant contribute a lot.

I am manging at the moment to pay for the house, debts etc and have a bit left over each month as spare.

My idea for repayments was to lower the debt, making the loan less when i do sell but I understand what happens when rates go up. I know I can afford rates up to 5.99 because that is what the Fixed rate was which I paid alone.

The ex has stated he does not want any part of the house or proceeds from it, he just wants off the mortgage completely, wants a clean break and to be honest so do I!

beecher

On another thread you say your mortgage is £450 and you're getting £300/month from a lodger. Is this still accurate information? If so this gives you a lot more room for manoeuvre as you must have extra spare cash. Best advice is to post a Statement of Affairs as from looking through your previous posts you're just asking the same questions over and over again, possibly looking for a new answer?

Mrs_Bumble

The SVR could go above 5.99, ask NR what the SVR historically has been. They can put the SVR up at any point that they as a business see fit. The largest payment that you pay out each month is to the actual mortgage committment.

If you go onto a repayment mortgage your payments will increase and yes on the flip side of that you will repay capital but not huge amounts in the beginning it is mostly interest, the downside of that is that when the SVR interest rate goes up you will already be paying more and it will increase further, you have already stated you can't afford this.

So how in the long term do you see yourself maintaining the mortgage and all of your credit committments and keeping your credit history in tact?

DD2_2

Do you have any idea what the house is currently worth? You bought in May 2006, which was close to the top of the housing market and now that we've had the crash, you could be in negative equity. If I were you, I would get a free valuation from a coupel of estate agents and base your future decisions on the price they give you.

If you are in negative equity (and I really think you will be), you owe more than your house is worth, you have credit card debts debts of £5k on a salary of 19000 (so you owe more a quarter of your annual salary, after tax). I think you need to have a reality check here and realise that you own less than nothing. I would seriously consider going bankrupt, with your first step being a visit to the good people on the MSE BR board.

angeljay

Yes I understand your advice Mrs Bumble, I was just hoping for a solution so I would be able to keep the house. I assumed when rates went up I could contact NR and they would help some how! Maybe not, selling could be the only option then!

Mrs_Bumble

I don't think hoping that they would help you out is going to be the best way forward. They will come to an arrangement with you if you can't meet the payments but that is only short term fix, the arrears will acrue and what then? You have to be able to afford the mortgage for the long term and from what you have said you can't foresee that?

Selling the property gives you an option to remove the biggest portion of your debt off your back and you can work on the rest. Without wrecking your credit history.

Like I said above, you have been given lots of advice and you have to weigh up which course of action suits your long term needs best, although I personally would do everything in my power to avoid bankruptcy and IVA as they will black mark you for longer than 6 years in the current financial market.

angeljay

DD2 wrote: »

Do you have any idea what the house is currently worth? You bought in May 2006, which was close to the top of the housing market and now that we've had the crash, you could be in negative equity. If I were you, I would get a free valuation from a coupel of estate agents and base your future decisions on the price they give you.

If you are in negative equity (and I really think you will be), you owe more than your house is worth, you have credit card debts debts of £5k on a salary of 19000 (so you owe more a quarter of your annual salary, after tax). I think you need to have a reality check here and realise that you own less than nothing. I would seriously consider going bankrupt, with your first step being a visit to the good people on the MSE BR board.

Yes, I also believe I am in NE that is true, on top of the credit card I have a loan for a new boiler. But at the moment I am managing to make payments to be honest with you. I was looking for advice on if i could keep the house!

Mrs_Bumble

You are not in NE, as your actual mortgage is less than the value of the house, it just isn't worth as much as you paid for it.

Unsecured debts are not part of the equity in your house.

angeljay

Mrs_Bumble wrote: »

I don't think hoping that they would help you out is going to be the best way forward. They will come to an arrangement with you if you can't meet the payments but that is only short term fix, the arrears will acrue and what then? You have to be able to afford the mortgage for the long term and from what you have said you can't foresee that?

Selling the property gives you an option to remove the biggest portion of your debt off your back and you can work on the rest. Without wrecking your credit history.

Like I said above, you have been given lots of advice and you have to weigh up which course of action suits your long term needs best, although I personally would do everything in my power to avoid bankruptcy and IVA as they will black mark you for longer than 6 years in the current financial market.

Yeah I can afford the mortgage whilst it is below 5.99 but need a few more years to pay off other debts to allow more spare cash.

Just did not want to lose the house, put a lot of work into it.

I suppose I am not the only person in this predicament and when rates go up again I think NR could be pretty busy!