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Mortgage help please....
Keity
Posts: 3 Newbie
Hello, I'm a newby to this and would really appreciate some advice.
My husband and I have decided to split after 20years. It is all amicable and we want to split fairly.
Currently we have 2 mortgages - a small repayment mortgage and a larger interest only mortgage and endowments. We already know we have appx 20k shortfall on the endowment and only appx 4years left to go on the mortgage. I've worked out we will pay in about 12k in the next 4 years but realistically only get 10k back. My thinking is to cash in the endowments, pay off the repayment mortgage and loan/credit card so we both start with a clean slate. We should both end up with a reasonable amount of money each as well. My plan is to change the current interest only mortgage to repayment , extend the terms and continue paying this myself (I am 41 by the way). To top it all I plan to have the house signed over to myself and my brother who is going to invest a portion into the house so I can afford to stay there and this will then release a lumpsum for my husband to have a decent deposit on a new place for him. Does this all sound feasible ? Does anyone know what the chances are on being able to get a repayment mortgage at my age if the endowment has gone. In theory the equity is all in the house. The interest only mortgage is 75k and the house is valued at 220k.
Any advice would be greatly appreciated. Thank you.
My husband and I have decided to split after 20years. It is all amicable and we want to split fairly.
Currently we have 2 mortgages - a small repayment mortgage and a larger interest only mortgage and endowments. We already know we have appx 20k shortfall on the endowment and only appx 4years left to go on the mortgage. I've worked out we will pay in about 12k in the next 4 years but realistically only get 10k back. My thinking is to cash in the endowments, pay off the repayment mortgage and loan/credit card so we both start with a clean slate. We should both end up with a reasonable amount of money each as well. My plan is to change the current interest only mortgage to repayment , extend the terms and continue paying this myself (I am 41 by the way). To top it all I plan to have the house signed over to myself and my brother who is going to invest a portion into the house so I can afford to stay there and this will then release a lumpsum for my husband to have a decent deposit on a new place for him. Does this all sound feasible ? Does anyone know what the chances are on being able to get a repayment mortgage at my age if the endowment has gone. In theory the equity is all in the house. The interest only mortgage is 75k and the house is valued at 220k.
Any advice would be greatly appreciated. Thank you.
0
Comments
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Clearing any existing financial committments makes perfectly good sense.
Your ability to obtain a repayment mortgage shouldn't be affected by your age. The important thing to consider is the term of the new mortgage. As you get older, your employment prospects, health etc will come into play. Also the ability to save for a pension.
Your brother buying a share of the house means that he'll also need to be included in the mortgage application. An alternative could be to lend you the money then place a charge on the property as security. The solicitor handling your mortgage will be able to advise you accordingly and draft the necessary formal agreement.0 -
Hi Thrugelmir,
Thanks for your comments, They're really helpful.
I've got a company pension so I'm ok on that front.
Thanks again0
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