mortgage mess help

wilt_2

My husband and I separated 2 years ago, 9 months after buying a house for 210k with a joint mortgage of 194k. He earns 50k and this was ok financially. However now the house is only worth 175k. My problem is this: we have 3 boys who were 3,5 and 10 at the time so I wasnt working at all. He could not afford to pay mortgage and pay for somewhere for himself so he changed the mortgage to interest only. I assumed this was a temporary measure. He then, stupidly i think, bought a caravan for himself to live in which cost 10k. Including this, he ran up 20k of credit card debt in 18 months and has now done an IVA because he couldnt keep up the repayments I assume. He gives me 500 a month maintenance. I have managed to get a part time job and am paying the mortgage and everything else out of my income, which includes some benefit. My divorce absolute came through this week. His solicitor has just written to me to state that they do not see the point of doing the consent order because of the negative equity.

I phoned Intellegent finance and they will not let either of us off the mortgage or change it to a repayment, because I dont earn enough and because of his IVA.

I was a teacher, so if I get a full time job I coul earn approx 25k to start with. Obviously this is not enough to get the mortgage.

Apparantly his iva company can ask for periodic valuations and can ask him to remortgage to reclaim part of the debt. How would this work out for me? He has also now said that the only way he will come off the deeds is if I buy him out, but I have no money to do this.

We could sell when the market improves, but this means I am off the property ladder completely with no way that I could ever get back on it. Well not easily as I am already 41 and have no savings.

I was looking into the possibility of OWNHOME scheme with the coop because I wouldnt have needed a deposit, but this has now been cancelled apparently.

What is the best thing to do financially;?

Stay in this house and make him stay on mortgage until kids are 18. Meanwhile trying to set up some repayment scheme to pay off capital. Would he still get half though?

Sell when in positive equity and rent a property, whilst saving for a deposit for a shared equity scheme.

I would also quite like to relocate as my husband moved us here with his job and I havent really settled.

So I could possibly rent this house out, with his permission and permission to let off lender. Then we could sell at some future date and hopefully have enough each for a deposit.

Is there anything I havent thought of?

We have had a property for 8 years and it is heartbreaking to have to do this at all. although I am sure many people are in the same boat.

I would just like to have a secure place for the kids while feeling that I am working to pay off a mortgage rather than just renting. Am I being unrealistic?

My solicitor doesnt seem very good on the financial side of things and I feel I need to speak to someone, but who?

Thanks in anticipation

msw_2

Hi,
That all sounds awful. Sorry I don't really have any proper advice to offer but you might be able to get a better response if you post this on the debt forum. The situation is complex and you need advice about any right he would have to claim on any future equity which you build up in the property. Someone on the debt board might be able to point you in the direction of a financial expert who could help with this part of it. Re relocation, you may need to consider whether your ex will be ok with this - regarding access to children etc. If you relocated could you buy a cheaper property? What about the key workers scheme somewhere if you are a teacher? It seems unlikely that you would get a mortgage for £175k in the current climate based on a £25k salary so you might need to consider a move at some point. I am not sure how they treat benefits or maintenance payments though - you need to find that out.