Remortgage

2bnelly

Hi
Our mortgage is due for renewal in March but my partner has in the last year suffered from bad credit due to a failed business. He is now considering bankrupty. Would it be better to do this before or after the mortgage renewal? I am also considering an interest only mortage for a couple of years until our financial situation settles down, would this be possible? I earn a decent wage myself working in the NHS so could I get a mortagage on my own, although stupidly I bailed the business out with my credit cards a few too many times and still have this owing.
I guess you live and learn!
Any ideas or what would be best, currently have a self certified mortgage and was hoping we would be offered a decent deal from our current providers but seems their interest rate is high compared to many other providers.
thanks

opinions4u

If your property is in joint names, bankruptcy could force you to sell up in order to pay the bankruptcy trustees. Alternatively they could force you to buy your partners half of the equity with the proceeds going to the trustees.

I'd suggest taking professional advice before doing anything. If not visit the Bankruptcy part of the forum and seek help there.

Our mortgage is due for renewal in March

A mortgage doesn't "renew". A product comes to an end and you move on to a "go to" rate such as a lender's SVR.

Would it be better to do this before or after the mortgage renewal?

There is little point paying fees to remortgage or switch to an alternative product with your existing lender, especially if that product has redemption fees, if you're going to be in a position where selling the house is a likely outcome.

I earn a decent wage myself working in the NHS so could I get a mortagage on my own

Probably too late, but could you transfer ownership of the property in to your name now ahead of any bankruptcy? Take professional advice before doing so!

Out of interest, and to assist other posters please can you confirm:

- name of lender
- debt
- property value
- the rate you expect to go on to in March if you do nothing

Hope that helps to a point!

2bnelly

Hi

when we bought the house our solicitor suggested 90% of the property was put in my name ( sensible man!) so my partner only actually owns on paper 10%. Not sure what difference this will make.

Lender is standard life and not sure what the new rate will be in March, know it will be less than we are paying at present, which is 6.79%!

Trollfever

Probably too late, but could you transfer ownership of the property in to your name now ahead of any bankruptcy?

The Official Receiver has the powers to void the transaction as it would be entering into a preference. Take professional advice.