Advice needed!!!!

Rowline

Hi,

I am new to this forum so please bear with me but I have got some mortgage problems I need to discuss.

Almost 3 years ago I took out a mortgage with a ex partner as first time buyers. Unfortuntly the relationship broke down and although I couldnt take the mortage over in my sole name we came to a agreement that I would take over the property and although my ex partners name would still be on the mortgage he would have no involvement.
We have both moved on now and have new partners and I rent out the property for £450.00 a month and supplement the £604.00 mortgage.
I have spoke with the bank as the 3 years interst only rate is due to end in March and I then realised that the mortage we are on is a "homestart" mortgage which means after the 3 years of interest only i will start to pay the capital back and my mortgage is going to go up to approx £700.00 per month. This is something I just cannot afford. When explaining this to the bank they said if i didnt meet payments I would get repossed, which is soemthing I do not want for myself or my ex partner. Even though I have a tenant in the house which was allowed by HSBC they are not willing to look at extending my interest only period so I am able to pay the mortgage. I cannot sell it as it is in negative equity and if i put it on the market i will lose my tenant and then will be paying the full mortage which I cant afford even at its current payment.

I am also stuck as HSBC will not allow my ex partner to come off the mortgage.

I am completly stuck at what to do I feel like the bank just wont even listen to my problem and want me to get respossed. I have no one I can ask to help supplement the mortgage and Im petrified about what is going to happen.

Can anyone advise me / been in a similar position? I would apprecaiate anything.

Thanks

Caroline

Cannon_Fodder

You would need to convert to a buy-to-let after 3 years anyway. With no equity and insufficient rental income, that will be a non-starter.

If you cannot afford it, you cannot afford it. Something has to be given up.

Out of the three (?) houses in the scenario;

- this one
- the one where you live with your new partner
- the house where your ex now lives

...you have 3 rents/mortgages to pay, between you. Ok 'this one' is partly paid by rent, but nowhere near enough to cover next year's situation. And the others have new partners to contribute/consider.

So, you need to pick the best two houses - that will also be acceptable to the new partners - and get rid of the extra one.

If you love 'this one' to bits, for example, and your new partner is happy to move in, why not do that and free up whatever rent/mortgage is paid where you live now?

Or, another version of switch around, that suits everyone best...


The alternative is that it could take 1, 2, 3 years to get back into equity, during which period you will have to find £8,400, £16,800, £25,200, just to keep the house from being repossessed, as it gets back to the price it was when you bought...

Depending on the amount of negative equity, you might be better off just selling and raising the the shortfall, to avoid repossession and the damage to your credit history - you'll presumably want a mortgage with the new partner...

Rowline

Thanks for the advice.

The situation with the 3 house is :

I live with my new paretner in a new house which we pay for together - I pay towards the mortgage and he pays the rest.
The ex partner lives in rented accommodation ( he cannto get another mortgage due to bad credit rating which is why our orginal mortgage is so bad) he also doesnt live in the area anymore.

I agree that selling it and rasiing the rest to get out of neg equity would be best howvere I cannot afford to pay the full mortgage while it is on the market and no one will give me a loan to cover the negative equity.

Would I need to convert to buy to let or would the bank not allowe me to rent it out again with constent?