remortgage help

peter39uk

Hi,

My wife told me the devestating news she wants to leave me after 7 years of marraige. To say I am heartbroken is an understatment and did not see this coming at all. Her reason is her feelings have changed towards me and that's it over simple as that but wants to stay friends. She has had months to think about it while I am still coming to terms with it. We have a young son who I will see a lot but not looking forward to telling him the news.

I would like buy her out but not sure I can afford it. We have £70,000 left to pay on the mortgage and I think it's worth between £130,000 and £140,000. Using the remortgage calculator it says some lenders would give me money even when I am paying other debts like credit cards and car loans.

I have about £7,000 on 2 cards (they just got out of hand mainly pleasing my wife, how silly I feel now) £3,000 on my car and £6,000 on her car all in may name but she is willing to pay her car in full once she gets money from the house (this is in writing from her solicitor). I want to stay in the house for my son mainly simple as that. Earlier this year I got a policy out for some money and could have paid most of the debts of but my wife wanted to do things in the house and I have spent about £2,500 trying to please her then she hits me with this!

I have always had credit cards but not as much as I am due on them now. Car loans as well over the last 6 years but have never missed a payment and always paid things off. I am worried though that as all this debt is in my name the lender won't give the remortgage I am wanting to pay off my wife and buy my house. I think I will need about £100,000 and pay her £30,000 (if it's valued at £130,000). She has said she is willing to accept this amount if it's valued higher but she then gets a profit if I sold it on.

I have some savings (£3,000) but now need these for solicitor bills, valuations etc.

I have asked her to stay in the house as long as possible so she can save up more and I can pay off some more debt but she wants out as soon as she can after the year. She thinks the housing market will take off again!

I have said it will cost money if I cannot afford the house and it might take months to sell, so surely me buying this would help and she could take less money but I doubt it.

I am going to see a mortgage broker next week after the house gets valued and would am just looking for some help or advice if people think a lender would give me the money I am after with all the debt I have just now.

Any help would be great thanks, my head is all over the place.

Peter

Conrad

In the end it will depend how the underwriters view your debt in terms of ongoing affordability. You don't state your income level, but if you want to borrow £100k mortgage, with your existing debts I roughly estimate an income of £32000 would be required, but many variable affect this such as the size of the payments on those car loans.

A very good well experienced broker will offer various tangental ways to approach this to get the deal done. Don't be put off if you encounter some brokers that simply say it can't be done. At the same time do not use one of the larger firms as these will be staffed by people that are a world away from the thoughtful hands - on one man band. I'd liken the difference to that of calling your local GP as opposed to NHS Direct.

Best of luck

Don't try and 'win' your woman back btw - no one desires something if it's so easy to obtain. You will recover lost esteem in time as long as you recongnise you simply are'nt compatible.

Anastasia

I would strongly advise you to consult a solicitor before you agree anything else with your wife! You are being too helpful. If she wants to leave let her move out and take some time to think about your position.

Who is your son going to live with?

peter39uk

Thanks for the replies,

I earn about £25,000 a year so no where near the £32,000 quoted.

I live in Scotland but don't know if that matters or not?

We have agreed my son will stay 4 nights with with my wife and 3 nights with me. I think I am being too nice but that's the way I am. I wish I could be more ruthless at these things but don't want to fall out with anyone even though I know I have done nothing wrong.....

peter39uk

Just a quick question.

I am getting my house valued tomorrow. I take it we need to go with their valuation of the house? I mean my wife is probably hoping for more, as she would get more, I am hoping for less so I can afford hopefully a remortgage.

My lender went through the figures with me and said they valued the house at £137,500 without even looking at it!

I was hoping it would be worth £130,000 at most even then I think I am struggling.

Cheers,

Cheers,

lmclean100

Hi

If you try Beacon, you'd need to go through a mortgage broker as they only deal wth brokers and not individual people, you should be able to get a mortgage.

L

peter39uk

lmclean100 wrote: »

Hi

If you try Beacon, you'd need to go through a mortgage broker as they only deal wth brokers and not individual people, you should be able to get a mortgage.

L

thanks for that, given me a bit more hope hearing that.

I am going to see a broker and will mention them. Scottish widows bank also seems to be a good one but will need to look more into it.

thanks again

peter39uk

I am patiently waiting for a phone call to let me know how much my house is worth.

Am I right in thinking that if it's a higher value than I thought and my wife was willing to accept less than half the equity this would help in me getting a remortgage?

I was originally hoping it was worth at most £130,000 then give her half the equity. But if it's worth say £140,000 and she would accept the equity from a £130,000 valuation it would help me?

I am getting a bit confused as my head is all over the place just now, sorry if that sounds silly!!!

Cheers,

peter39uk

Anyone help me at all with my last post here please?

Cheers,
Peter

Senior_Paper_Monitor

From whom are you getting the valuation - and for what specific purpose - will then try to answer more fully

A couple of other questions/issues ....

Which of you will benefit from the tax credit and child benefit (with some lenders this may assist) ?

Conrad (as you would expect) is absoulutely right with his figures and his guidance. You are going need a good broker to ensure you place the correctly presented application to the correct source.

It is certainly going to be tight, but the higher the valuation, the lower the LTV (particularly if your wife accepts an agreed sum rather than 50% of equity) and the higher earnings multiople you may achieve (subject credits rating) but obviously this goes up in bands rather than a straight percentage.

Any chance of family helping with some cash or possibly coming on the mortage (even as a guarantor) ?

peter39uk

Senior_Paper_Monitor wrote: »

From whom are you getting the valuation - and for what specific purpose - will then try to answer your main question

I am getting a valuation from a chartered surveyors my solicitor recommended to me.

The house is being valued as my wife is leaving me and I want to hopefully buy her out with a remortgage.

I could get some tax credit and child benefit but I thought my child support would counteract that?

I think my wife is willing to accept less than the 50% equity but has also said she wants a good amount to buy a new home as well and pay off the car I am paying for her!

It's not a great time as my parents have just got back to normal finance wise and have not got much savings to give. I also don't want to get them back into debt right away. They will help as much as they can though.

Thanks

Cheers,