relationship split & remortgage

amiracle

This is my first time posting so I apologise if something similar has already been asked & answered.
My partner & I bought a property 4 years ago and our outstanding mortgage is now £150,000. At the time we bought for £163,000 and I put down a deposit of £7,000 from the sale of my flat. It is likely my partner & I will be going our seperate ways and I am pretty desperate not to lose my home into the bargain too. The predicament is I now work locally & earn significantly less than when we applied for the mortgage (I now earn £21,525pa).
I need to get an estate agent round but at a gues I would say the property is worth £175,000 today. In order to take over the property I would need to pay my boyfriend his his half of the profit less my deposit amount (£9,000). I would then need to take over the remaining £150,000 still outstanding on the mortgage.

I have looked high & low as to a way round this but clearly I am looking to borrow way over what my salary dictates I can. My parents are willing to assist and they have a property paid off & in their names worth £175,000. Does anyone know if I can offset their property against my borrowing? This would be my last resort and I would want to make sure I did not risk their security. To be able to afford to borrow what I need I am guessing an interest only mortgage would be the only affordable option but again I don't know much about what I can or can't get.

many thanks

Cannon_Fodder

7x income isn't going to happen, either interest-only or otherwise.

You are going to have to wait until your income increases to take it on, on your own. You could overpay in the meantime. That could help reduce the amount owed, such that it reduces the salary multiple. But even then, its going to take about £40k to get it anywhere near a doable figure.

Your parents could re-mortgage to release money to give to you. But that risks their security. Its not possible to offset property itself.

Of course, while waiting, if you meet someone new and they want to go halves, that could be a solution.

How would you raise £9k, or whatever figure your ex would agree to? Plus some legal costs on top.

How long the ex is prepared to wait may become a factor. If he needs to get a fresh mortgage for another place, he could force the sale to release his equity.

Keep it amicable, because the two of you could be stuck with having to cooperate over this for a long time.

CLAPTON

the first thing to do is to work out a realistic budget
can you really afford to pay the mortgage, CT, water utilities and living expenses; on a salary of 21k that seems unlikely
this template is good to use http://www.makesenseofcards.com/soacalc.html

it's really very very unlikley that you will qualify for a mortgage of 150k .. thats over 7 times your income... not going to happen
even if you could get a guarnator mortgage with your parents you are putting them at great financial risk if you couldn't keep up with the payments


do the budget first and be totally realisitic and I think you have to accept that your income is simply insufficient to be able to keep the house unless your parents are able and willing to subsidise you on an ongoing basis

luckyfool

If your parents have an income, it may be possible for one or more of them to go on as a guarantor to your mortgage if you remortgage it into your sole name. Depending on the lender traditionally they would guarantee the whole mortgage, but there are options where they would only need to guarantee the element over and above what they would lend you on your own salary.

herbiesjp

Your only option will be by having an increased income - be that via a new partner, or parents acting as guarantors.

However the lenders available would have to be happy with affordability ( as would you) - and the LTV of the situation.

How would you support the mortgage payments on that amount of income?

getmore4less

Assuming bought £163k(who paid the costs?) and £7K deposit and you went 50:50 on the mortgage and it sells for £173k net of costs.

You own in the ratio of 85:78 at purchase which on sale at £173k becomes 90.2:82.8 less the 1/2 of the outstanding mortgage(£75k) that £7.8k you owe him or he walks away with you get £15.2k.


Adjust for costs and real net procceeds.

As has been pointed out not a lot of chance you will get a mortgage on your own.