Joint Mortgage - Relationship Split

Barts1

Hi,

I currently live with my wife and we have a joint mortgage together on a property. We have agreed to go our separate ways, and my wife is happy to let me have the house, no strings or monies to be exchanged.

I would like to take on the house; I haven't approached the lender yet (Northern Rock) as I believe that on paper they simply wouldn't consider allowing me to take the mortgage on due to the 3 x salary criteria?

We owe £230k, and I currently earn £40k per year. As things stand, I pay slightly more than the mortgage cost into a joint account (I pay £1300/month into the joint and the mortgage is £1200/month), and my wife covers the rest of the bills with a lesser sum.

I believe that with some sensible economising, I can cover the cost of the mortgage and my bills...but how can I convince the lender to discuss this sensibly without simply judging me on paper?

Thanks

CLAPTON

do you have a detailed budget showing how you would afford to pay the mortgage and bills etc on your salary
something like http://www.makesenseofcards.com/soacalc.html


what interest rate do you currently pay; have you factored in the effects of a interest rate rise of a couple of percent?

Caz3121

and what is the realistic value of the house to calculate the LTV

If you have children remember to factor in the child maintenance to the calculations

kim85

Hi I am currently in the same situation after splitting from my partner a couple of months ago, I am still in the process of sorting the mess left behind

I have found that my previous mortgage lender (Halifax) would not consider with my salary, I am now in the process of trying to go through HSBC they are willing to put through up to 4 x salary for me, although they will not guarantee this will go through.
They say it is much more likely to get through with a LTW under 70%
in terms of proving you can pay, it seems the more evidence you have of your outgoings the better.

I have found the mortgage advisors I have seen both at Halifax and HSBC both are less interested in whether you can prove you can pay it but just the salary multiples. Unfortunately many of the mortgage advisors are very much 'computer says no' tapping numbers into the system and not looking at the real situation.

Good luck with it all.
I have had to take on a 2nd job and put in capital injection to try and sort my house out, I hope it is all worth it!

Jo_2k

Hi, sorry for butting into this convo, just wanted to add that I'm in a similar position too and would also appreciate any advice.

I am also with Northern Rock and have sent for a "change of parties" form which I haven't yet filled out for various reasons but will soon be in a position to. I am so worried that they won't consider me. I earn approx 28k, mortgage is £700 p/m which includes a £30 a month overpayment. (outstanding mortgage is approx £112,000 with £5000 unsecured loan attached) I have no debt, excellent credit rating and minimal outgoings (but from what others have said, doesn't seem like this will help much). After my outgoings I will have approx £500 left per month (and 1 free month as I get paid 4 weekly). I can easily live on £500 but like the other 2 posters, I'm just not sure they will see it like that.

I don't think it helps that I am probably in negative equity but would be interested to know if I went for another mortgage how much my house would be worth - does anyone know how mortgage companies value houses? Do they actually come and look at the house or is it just a website that they use? I have checked online with nethouseprices and zoopla but there is a considerable difference between them so didn't really help.

Good luck Kim and Barts - Would be interested to hear how you get on and if you have any advice along the way

latecomer

you could always get a valuation survey done - cost approx £230 last time we did it.

No idea what the mortgage companies will make of peoples finances though - they appear to be a law unto themselves most of tghe time.