mortgage break

christopher51

We have a mortgage with bristol and west recently moved to bank of ireland, At the minute we are split up but still having to live in the same house due to lack of interest in the housing market, we owe 98k on the mortgage but also have about 20k other debts and the house was valued at 199k, Would it be worth taking a mortgage break and pay extra off the other debts, any other options would be welcome, thanks Chris.

Mortgage_Help_4

It would be worth taking a mortgage break and sticking the money in a safe liquid type deposit account as an emergency fund which will help you out in the bad times and make sure all of your committments are met during this tough time. I.e. if you dont have an emergency fund of say 2 to 3 months net salary then this money should be used for this purpose and will be your best friend if required. Best of luck and I am sure you will get through this.:beer:

dimbo61

If the two of you paying into the household pot cant afford to pay the mortgage and have built up £20k of other debts how are you going to manage a household on your own.
You may well get the mortgage break from your lender GOOD LTV but why not change to interest only IF you both agree!!!
Look at all you spending and start cutting back and saving for the next property

opinions4u

christopher51 wrote: »

We have a mortgage with bristol and west recently moved to bank of ireland, At the minute we are split up but still having to live in the same house due to lack of interest in the housing market, we owe 98k on the mortgage but also have about 20k other debts and the house was valued at 199k, Would it be worth taking a mortgage break and pay extra off the other debts, any other options would be welcome, thanks Chris.

Sell the house. Pay off ALL your debts. Split the equity (e.g. £40k each) and start again. Rent if necessary.

Given that this mortgage is a joint commitment with somebody you don't like I'd strongly suggest doing nothing that looks like missed payments / reduced payments / reduces equity. Relationship disputes are bad news and messing with your mortgage is a recipe for problems.

In the interim:

1) make sure you keep up all the payments on all the loans to keep a squeaky clean credit record.

2) Start spending less.

3) Don't build up any new debts of any kind.

The Debt-free Wannabe section is worth a visit to get ideas to reduce outgoings / increase income.

You should always view credit as an indicator that you are spending more than you earn. While it's not always a bad thing (when it's planned and affordable) it becomes a habit that makes you worse off.