Removing Ex off mortgage Need Help!!

beecher

angeljay wrote: »

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!

That's why I think you should go onto the Debt Free Wannabee forum and post a Statement of Affairs. Or post one here if you'd rather. If you can save £100/month or so from bills (and I've done so over the last year though I wouldn't have thought it possible), you can cut the time it'll take you to pay off the other debt and be in a better position to overpay your mortgage. On other forums you'll get help with upping your income, and boosting your partner's credit file.

It takes work, but if you've had your lightbulb moment you can be prepared for higher interest rates rather than just hope a solution will present itself, or hope that NR will do something to help you.

DD2_2

Mrs_Bumble wrote: »

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.

It doesn't matter what 'financial market' we are in, credit records only go back as far as 6 years. The only exception for this is if someone is reposessed and owes mortgage arrears. In this case the mortgage company has 12 years to reclaim the debt (except if that person goes bankrupt and then the debt is wiped).

In a straightforward BR, the bankruptee has 12 months under the official receiver, who overseas the payment of monies to the creditors. Once the 12 months is up the bankruptee is discharged and all debt is wiped off the bankruptee's record.

The bankruptee can then start to rebuild their credit record via pre-pay credit cards and judicious use of the bank accounts. After 6 years all information about their BR will be wiped from their credit record.

Mrs_Bumble

Why on earth would Angeljay want to go bankrupt? What does it solve for her? She has options. Bankruptcy should only be considered as the very last option and not a quick fix option to get yourself out of credit difficulties that can be worked through with a bit of effort. She doesn't have any missed payments or credit history at present so why would bankruptcy be the first thing she looks to do.

If she went bankrupt she would then have 6 years of not being able to get credit at all, no current account, pay all insurance premiums up front as paying monthly constitutes a credit agreement why would she want that hassle? The question generally asked on credit applications is have you ever been made bankrupt, so what would you do at the end of 6 years lie?

DD2_2

Mrs_Bumble wrote: »

Why on earth would Angeljay want to go bankrupt? What does it solve for her? She has options. Bankruptcy should only be considered as the very last option and not a quick fix option to get yourself out of credit difficulties that can be worked through with a bit of effort. She doesn't have any missed payments or credit history at present so why would bankruptcy be the first thing she looks to do.

If she went bankrupt she would then have 6 years of not being able to get credit at all, no current account, pay all insurance premiums up front as paying monthly constitutes a credit agreement why would she want that hassle? The question generally asked on credit applications is have you ever been made bankrupt, so what would you do at the end of 6 years lie?

Chill Mrs B. I'm not making any recommendations, I'm just making sure that she is aware of all the facts regarding BR. I agree with you that it's certainly not something to be taken lightly, but it is an option.

As you have already stated in your posts, the OP has not had any defaults on her mortgage, credit cards or other debts. However, as you know we are also in a period of the lowest interest rates in the UK. Once these rise (and they will, quite dramatically IMHO) she WILL start to default on her mortgage and other debts.

I'm with you that she should sell the house if she can, but if she is in negative equity, so can only sell if she gets a personal loan to cover the NE. Given that she is already indebted to her eyeballs with the unsecured renovation loan and her credit cards, this loan may not be forthcoming.

An option with a loan to cover the Negative Equity would be for her and the Ex to each take out a loan to cover their 50% of the NE debt. He would also have to take out a loan to cover his half of the Home renovation loan, and from what the OP has said, it seems unlikely that he will.

Mrs_Bumble

Didn't mean to come across harsh, I am what you could call direct!

She isn't in negative equity her actual mortgage balance is £73K and approx value I believe was £82K, and so she can settle her mortgage if the valuation she has is acurate.

The unsecured element of the NR agreement can run without the mortgage being in place and if the property is sold it would mean that she could then work on the unsecured debts, the unsecured element of her problems are insignificant to the ones she can get into if the mortgage is there and she gets into problems.

Whether he want to or not he is jointly responsible for the NR unsecured loan and will have to step up and maybe with the mortgage out of the way he will be more receptive. I suspect that both parties would just rather be rid of each other and unfortunately when you have a mortgage together it isn't that easy.

angeljay

Ok well had a chat with the ex, he understands the situation and i have explained I can't sell without getting into more debt! I think partly it is a bit of jealousy on his part because I have moved on etc.

Anyway we decided that I should stay in the house etc whilst I can afford, this way I am slowly paying off towards my other debts. I am hoping that house prices may rise a bit or I will have less debt in my name for when it comes to selling.

If i sell now and end up with another loan because of NE, this will just cause more stress. I am hoping to stay whilst I can, and hopefully sell the house in the future clearing the whole of the debt on the house with NR.

I was looking into remortaging just the secured part, but i think this and 14% on the unsecured loan will be to expensive.

Thanks for help guys.

DD2_2

Mrs_Bumble wrote: »

Didn't mean to come across harsh, I am what you could call direct!

She isn't in negative equity her actual mortgage balance is £73K and approx value I believe was £82K, and so she can settle her mortgage if the valuation she has is acurate.

The OP said she bought the house for £84k in 2006, but I don't remember her mentioning a more recent valuation. House prices have fallen about 20% from 2007 peaks, so dependant on how much value the home improvements added to her home, she could be in NE or very close to it. I still think the OP should get a couple of valuations to see whether she is in NE.

(to the OP)
I hope you're not counting on any rises in house prices within the next 3 years because I think we'll see more drops over the next 18 months, with properties losing anything upto a further 10% in value.

angeljay

However if i sell that still leaves me with about 25K of debt from the unsecured loan to pay off. As my ex is on benefits now he cannot contribute to this.

I have not had a valuation, however a house 2 doors down in worse condition then mine was valued at 103K in June 2008.

My problem is that if i sell, I have the unsecured loan, all the fees, rent, bond etc all to find before I can think about moving. I can either try to save (which I am !!!! at) and stay where I am or add these extras to my already existing debts.

Mrs_Bumble

DD2 Post 6 quotes valuation of £82K

Angeljay, I think that you will end up with further stress. Nobody would look to lend to you currently with your stated income and outstanding credit committments so you do not have any hope of remortgaging away. You have already stated that you can't afford the mortgage if interest rates go up, and I really think you should give NR a quick call and see what their SVR has been at historically. I remortgaged someone away from NR last year off of an SVR at 7.48%.

Mrs_Bumble

Have a look on sites like https://www.zoopla.co.uk to see what estimated values are.