Mortgage Trouble

kate2209

Hi Everyone,

Sorry if this is abit long but any advice would be much appreciated!

Basically me and my boyfriend bought a flat just over 3 years ago for £82000 with a 100% mortgage, a year later we split up. He moved back to his parents and i stayed in the flat alone.

We were in a fixed rate for 3 years costing £490 a month, he was paying £90 and i paid £400 when he moved out. The fixed rate ended in July and now im paying the whole mortgage at £410 per month.

He now wants his name off the mortgage as he wants to buy a house and obviously have his own mortgage. Ive had the flat valued at £75000 but was told it would more likely sell at £72000/£73000.

The current mortgage balance is around £81000 (cant believe how little has been paid off in 3 1/2 years!)

I would only be able to get a mortgage in my own name for around £60,000 with my earnings. I have no savings and would not fancy taking a big loss from selling, and would also not be able to afford paying the rest of the mortgage arrears and rent on somewhere else is we sold up, as the flat is in negetive equity. My parents are divorced and live in one bed flats each so living with them is also off the cards.

Does anyone know a way i'd be able to keep the mortgage in my own name? Or any advice at all at the best route to take?

Its causing a few sleepless nights at the moment!

Thanks,

Kate

rothers

Hi Kate, I'm no expert so please don't take my view as gospel.

I think that you will struggle to remortgage as the flat is now in negative equity. Your ex will therefore not be able to come off the mortgage unless he can come up with the difference if you sell the property (you say you don't have any savings). If he can then I'd sell up, if he can't then I'm afraid that he is stuck with the mortgage.

Again, this is just my opinion!!

Good Luck!

Edit: Spelling!!

herbiesjp

Your only option would be your current lender, and seeing if they would allow you to continue the mortgage in your own name.

If not, then your ex would have to stay on it.

As for how much the balance decreased, did you add fees onto the mortgage initially?

Is the mortgage 100% secured against the property - or was part of it an unsecured loan?

Who is the lender?

kate2209

The mortgage is with northern rock, I filled in a change of parties to have it in my own name with a covering letter but they seem very black and White, I don't earn enough on paper so I can't keep it. Even though I'm already paying it by myself!

There is an unsecured loan with the mortgage, the split is £77168.85 for the mortgage and £3976.20

beecher2

From their point of view, at the moment they have two people they can go after for payment of the mortgage and loan so would be disinclined to only have one person.

Your ex may want to come off the mortgage, but unless he has a plan for paying off the loan then that looks impossible. He must have a deposit saved for his new house - could he use that?

kate2209

I'm guessing he must have enough saved but there's no way he would want to use it all he would defo be expecting me to pay half the shortfall

beecher2

I was meaning that he could use it to be his half - this would leave you with a relatively small shortfall. Maybe it would be possible for him to pay off the outstanding amount of the mortgage, and for you to take on the loan? I don't even know if this is a possibility or not, but the two of you need to thrash out a solution which lets you both move on.