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samuela66
Posts: 1,203 Forumite
MY friend took out a mortgage just over 2 years ago, she is on interest only and owes about 90k, she was with her partner at the time although he wasnt named on the mortgage it was taken out on the understanding that when his house was sold it would virtually cover the whole mortgage!(they have since split) Today she went to her bank account and was shocked to see her payments had gone up by over £120 per month making the mortgage £590 per month, she cannot possibly afford this, but knows that on her wage of about 12K she will never get the mortgage she needs, the house is worth about 170k, does anyone out there have any advice at all for her, many thanks!
Sam B
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Her boyfriend sounds like a bit of a muppet, for not getting his position legally set out properly!
But anyway, back to the matter in hand.
She can't possibly remortgage £90k on a £12k income, as you say. Which means she can't possibly live in that house, unless she gets a lodger (tax free up to £3,250 per annum which is almost £300 per month or half her mortgage).
If she doesn't want to go down the lodger route, she needs to sell up and clear the mortgage and then buy, more cheaply (or more likely not at all and rent).
She will clear £80k of profit on the house (less selling and legal costs) so shouldn't be struggling really! But I'd expect the boyfriend to be after some £££ if he contributed towards the mortgage.0 -
Hi thanks Mark, No her b/f didnt contribute a penny, so not a problem there, this is the road she is going down (selling) i think, many thanks!Sam B0
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Only guessing here, but have the payments gone up because she has come to the end of a discount/fixed rate period and now she has gone onto the lender's SVR?
If so, it might be worth going back to the current lender to see if they have got any new deals that she could go on that would be cheaper than the SVR.
Does she have any other sources of income? new partner?I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Hi, No she has no other source of income and has come to the end of her fixed rate period, she called them and they said they have nothing to offer her
, so it looks like it will go on the market... Sam B0 -
Who is the lender that has nothing to offer?I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Hi Herbie,
She is with Derbyshire home loans, they have said they cant offer her a better deal than this one they have upped it to!
SnoopsSam B0
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