Remortgaging Advice Desperately Needed!!

lizzymoon

[FONT=&quot]I'm desperatly in need of some advice here![/FONT]
[FONT=&quot]Bascially, myself and my partner seperated in December 2009. She moved out of the flat which we had bought just over a year earlier. I gave her £3000 and she agreed that she wanted no further interest or share in the property.[/FONT]
[FONT=&quot]Shortly before we broke up our fixed rate deal ended and I have been paying an interest only mortgage since. The flat was bought for £118,500 and has only recently returned to a level of value nearing that price.[/FONT]
[FONT=&quot]Since then (13 months) all the household bills have been payed in my name. The mortgage has been paid by me only, no missed payments and withdrawn from my bank account only. [/FONT]
[FONT=&quot]This week she has been in contact with me saying that she wants to come off the mortgage as she and her new partner intend to buy in the coming summer. She's not after money, she just wants to come off the deeds and the mortgage.[/FONT]
[FONT=&quot]Now, in the eyes of my lender, Northren Rock, I do not earn enough money to pay the mortgage on my own. I'm a gardener on a basic of £14,0000 pa, whilst also recieving £300 a month from private work, paid monthly and on my bank statements. I've proved that I can pay the mortgage on my own income, for over a year.[/FONT]
[FONT=&quot]So I'm not sure what to do here! I bascially want to keep my home and yet know that the minute I contact Northen Rock they will say that its not possible! I can afford legal fees, thanks to my mum! But I'm unsure of the outcome?[/FONT]
[FONT=&quot]Will Northern Rock insist that I sell the property?[/FONT]
[FONT=&quot]Is there any other possible outcome? [/FONT]
[FONT=&quot]Thanks! [/FONT]
[FONT=&quot] [/FONT]

happybroker

how much is the mortgage for and do you hve any other finance?

Northern Rock can't force a sale of the property, they have to take it into posession to sell it and can only do that if you don't pay them.

It's her look out really and she should consider herself really lucky that she got £3k for, basically nothing, as she at the time owned a share of the negative equity.

She can try and force a sale of the property through the courts but this will cost her a fortune, isn't always going to succeed and takes forever. She can't, force the mortgage company to allow her to be removed from the mortgage.

lizzymoon

Thanks for that!
The mortgage is for £113.000. I don't have any other finances, but like I said, I can borrow money for legal fees when they occur. Any idea what I say to Northen Rock when I phone them up and tell them what I've said here?

VIGILANT22

Why/what are you going to phone NR for?

lizzymoon

Hi Vigilant22.
As I said, my ex wants to come off the mortgage and I want to keep the flat. In the eyes of Northen Rock however, that won't be possible with my single earnings, even though I've paid it without fault for over a year. Of course, I could make it hard for her but I don't how that would plan out in the long run! She could probably then push for her half her share if the property ever sells, as long as its got her name on the mortgage, couldn't she?

beecher2

You're only paying the interest and don't earn enough to take on the mortgage yourself. On top of that your LTV is very high. Selling up and renting would seem like the only realistic option you have - keeping the flat just doesn't seem viable, unless you have a plan for how you will pay the capital.

VIGILANT22

lizzymoon wrote: »

Hi Vigilant22.
As I said, my ex wants to come off the mortgage and I want to keep the flat. In the eyes of Northen Rock however, that won't be possible with my single earnings, even though I've paid it without fault for over a year. Of course, I could make it hard for her but I don't how that would plan out in the long run! She could probably then push for her half her share if the property ever sells, as long as its got her name on the mortgage, couldn't she?

I am afraid on a salary of 14k pa plus 2nd income of 3,600.00 you are not going to qualify with any lender for a mortgage of approx £118,500.

Average income multiples are 3/4 your salary less any liabilties.

The fact you have kept up the payments on your own, will make no difference to the lender.

I am presuming you had no Cohabitation Agreement in place.

Your ex can force a sale of property.

I wish I could paint you a better picture......

Do you have any family who would be prepared to go on the mortgage with you? Remember, they would have to meet the lender's criteria...good luck........

happybroker

lizzymoon wrote: »

Thanks for that!
The mortgage is for £113.000. I don't have any other finances, but like I said, I can borrow money for legal fees when they occur. Any idea what I say to Northen Rock when I phone them up and tell them what I've said here?

Ring Northern Rock and tell them what your situation is, also give them your ex partner's address so that she will be copied in on any correspondence. This is important as she needs to be made aware of anything happening with the loan.

They will tell you that they won't be able to entertain switching the mortgage into your sole name and you need to ask that this be confirmed to you (and her) in writing so that she can be assured that you have asked at least which could help to keep things "amicable".