Halifax turned me down but i know i can afford it

p1987

I have recently split from my ex fiancee.

I applied for the mortgage through halifax but they turned me down. A financial advisor has told me he thinks i could just about get the mortgage but halifax work on a points system; they turned me down for for this reason + my house is in £2,000 negative equity.

looking at my finances though; i could manage on the money that i would have left at the end of the month if i took the house on myself.

If my ex moves out, can i just keep on paying the mortgage myself when she moves out? i know my exes name will still be on the deeds and she will be entitled to half the money when the house will be sold.

any thoughts?

Mrs_Bumble

Is your existing mortgage with Halifax and you were just trying to remove your partners name?

What is the outstanding mortgage, your annual income, do you have any other credit committments?

Negative equity makes things much more complicated, what did you purchase the property for and current value now, you can check sites like https://www.zoopla.co.uk

Do you have any additional savings that you can reduce the existing mortgage with.

If your ex moves out you can carry on paying the mortgage and her name will remain, you both remain jointly and serverally liable for the mortgage payments so if you did stop paying they would chase her etc. In relation to what equity she would be entitled to you will need to seek legal advice on this as you may be able to draw up some agreement which will come to a fair split if you carry on paying the full mortgage amount etc.

anh1904

Sort the matters with your ex first. If she wants to retain an element of the equity (present or future) she has to be committed to the loan against it.

I would imagine you are in a joint mortgage (tenants in common or joint tenants??) and suspect you are currently jointly and severally liable, i.e. if either of you defaults, the bank will happily go after the other one for the money (and not in any particular proportion - they just want the payment.

I have loads of background info as I lost the whole lot during my divorce, PM me if you want or need more info.

ALIBOBSY

To be honest if you keep paying the bank won't care who the money comes from.
Your issue is that her name is there and she could claim half any profit, however now and probably for a few years yet there is unlikely to be much profit at all to split.

Who is you mortgage with now? They may let her be removed from the deeds and the mortgage. You will have to decide who pays the fees involved and if she pay you anything to cover the neg equity she leaves you with.

ali x

p1987

Is that illegal though? halifax did turn me down for the mortgage mind. so if i just keep paying thats ok? dont i have to agree to their policy of my circumstances change?

If i tell them my circumstances have changed; she moves out and they know i cannot afford the mortgage, wont they allow me to keep paying the full amount?

Reason i want to pay the full amount; because i dont trust her with the payments.

should she be paying half? would it be ok if i keep paying the full amount?

My income = £15288

Current Mortgage = £78,000

Negative Equity = £2,000

Monthly payment = £527

anh1904

You need to get agreement with her about who is having what and get it drawn up properly (just like you would in a divorce).
You can get the house signed over to you (and really she should pay half the negative equity and you should share the costs) - however, "fairness" tends to go out of the window in these circumstances.

She does have a vested interest in getting it sorted though - if she remains on the mortgage, then she will not (or will be very unliekly to be able to) get a new mortgage for anywhere else.

p1987

cheers for your replys guys! i just want to do things properly :P :T

anh1904

I'm sure you do, but if you don't sort things out properly now, you are storing up some potential nightmare issues later down the road.

RufusA

Are you 100% certain you can afford the mortgage now, AND going forward, even if interest rates rise. Have you left ANY spare money to pay for entertainment, Christmas presents, house repairs etc?

By my calculation you're looking at paying over half your take home pay on the mortgage alone, and have a multiple of over 5 times your salary!

It may not be palatable, but you may find selling now (at a loss) which you split with your ex, better for you in the long term! You could reenter the property ladder a couple of years hence with a reasonable deposit saved, and house prices 10-15% lower than they are now.

Alternatively seriously look at taking in a lodger, or moving and out renting the property (assuming you can get consent to let)!

It's a miserable life being on your own, and just about managing to scrape together the mortgage whilst watching your house fall steadily in price. I did that in the very early 90's and wouldn't recommend it to anyone!

HTH - Rufus.

p1987

cheers for another reply

To be honest with you your right. i could just about scrape together for the house on my own.

My options

1) For her to stay in the house either (because she wont be able to move out and pay me half the mortgage)

a) on her own
b) with another member of family / a friend

and i continue to pay half the mortgage while finding a cheap place of my own, found some places £200 pcm some shared flats others single flats.

At the end of it all, there could be a possibility of profit.

2) Sell up and face the debt

Mrs_Bumble

Could you stay in the property and take in a friend/lodger to share the costs?

Stay with the joint mortgage till property prices increase and sell for a small profit?

Get legal advice now in relation to what formal agreement can be made between you for dividing of future equity.