Am I missing something?!

clearingout

I had a conversation with my ex husband last night regarding moving away from the area we are in now (north - cheap - we are both mortgage free) to the area he came from (south - London commuter belt - very expensive). He insists he has seen a couple of financial advisers who have told him that 'within six months' he'll be able to get a mortgage. We moved northwards for a variety of reasons - for me, mainly financial and family related but I am concerned he is about to walk out of our children's lives and go back southwards and if I can follow him and make it work financially, I will!

So, these are the facts as I know them:
November 2008 we start to default on two mortgages (joint) that we have on two separate houses (jointly owned). He leaves me the same month - moves into the buy to let so no longer have that mortgage covered with rent. Business is struggling. Ex survives by giving his girlfriend a large salary from his business whilst she also holds down a full-time job (well paid - is an accountant). He also effectively avoids child maintenance payments this way.

Between November 08 - December 09 - most (if not all) mortgage payments were late on the buy to let, all late on the family home.

December 09, I obtain a court order for him to pay the mortgage on family home but he doesn't. House finally sold July 10. Last mortgage payment was January 2010.

Last mortgage payment on buy to let made March 10. Sold August 2010.

Ex has a number of CCJs in his name, accumulated mainly between 2008 - 2010, probably equalling about £25k. These were all paid off when the house was sold. I have one CCJ as a result of the divorce (£3k), paid off when the house was sold.

We had an overdraft of £1.7k, paid off with the proceeds of house sales. Had been pushed over to debt collection agencies.

Ex had £1.9k of debt with his former electricity company, they had put him on a metre in about April 2010. Can only assume that he walked from what hadn't been paid when he left that house in August 2010. Assume council tax hadn't been paid (no evidence in his financial disclosure, ditto water, ditto gas).

Business hasn't filed accounts with Companies House for a number of years. Corporation Tax not paid for a number of years (3, I think, although not sure it was payable in the sense that the business stopped making a profit). Can only assume HMRC and Companies House are dealing with it. He is sole director of business (ltd.) and company also has a number of CCJs (around £3k worth, mainly parking fines, I think!).

CSA are on his back and about to get a liability order to the tune of £4k. He was able to produce payslips in June 2009 saying he earnt at that time £25k on a PAYE basis. Don't believe he'll have a P60 to back this up this year (year ending 09/10). It is possible he has company accounts but if he has, I'm not sure why they haven't been filed - some were produced for the divorce, but again, not filed so can only assume they're not accurate!

I have been part-time self employed for about 4 years now, earning around £9k a year. With tax credits and no mortgage I am now OK financially, although things are tight (3 young children). I was lead to believe in November 2009 by two mortgage advisors that I didn't stand a cat in hells chance of getting a mortgage, even a small one, in current climate. I am still self employed, looking to train as a teacher next year so likely to accumulate some more debt before I can get myself entirely straight.

Ex is now temping, looking for permanent work. I assume he has no deposit to put down for a mortgage (I assume because his financial disclosure was appalling and I often wonder if he managed to pull the wool over and squirrel away a few thousand. However, he doesn't live the life of a man with any money in the bank so for argument's sake, no deposit assumed!) but he does have a house now, mortgage free, worth no more than, say £80k (that's generous - he bought it for £50k with subsidence which has not been fixed, although he has done a lot of work otherwise). He intends to rent it out, not sell.

To get a three bed house where he wants to live, he'll need at least £175k, probably more like £200k. I expect him to get a full-time job to the value of about £35k a year.

Is the ex going to get a mortgage of any value at all at the point he has been in a new job for 6 months?! What if the climate changes to a more positive one? Do either of us stand any chance at all?

Conrad

I can think of a couple of lenders that would consider about 60% loan to value and interest rates from 7%. However they will want war and peace in terms of documentation to include well conducted Bank statements. They will lend max 4 x provable income.
There is no way on Earth he will get more than 60%.

He surely watches the news and knows there is little mortgage funding around? He must know even nations such as Ireland find it impossible to borrow from normal lenders?

Something you might want to be aware of - I've known nasty blokes getting out of paying for thier own children by cashing cheques in those cash convertor type shops - this is a massive ruse the Government / CSA are blissfuly unaware of.

Cannon_Fodder

Not likely.

clearingout

thanks both. So potentially on a salary of £35K with an £80k deposit, he might, if his bank accounts show appropriate conduct, get a mortgage to cover a £175k property? Interesting. Can I assume that a mortgage lender would be looking for regular outgoings in terms of utilities and Council Tax? Or would they just want to see an account that was regularly in credit?

I'm afraid he lives in his own world. He can watch the news but not interpret it as you or I would. He has an MBA and thinks that qualifies him to have a different opinion to the rest of us! He had a business which should, technically, have been recession proof which is an indicator as to how good of a business man he isn't.

I am aware of all the CSA tricks - there's little to be done, sadly. If you don't want to pay, there are loopholes all over the place which allow that. I don't expect to receive any money from him now - it's been 2 years. I manage, and the children have a good relationship with dad, that's all that matters.

OK. Thanks for that. It clarifies my own thinking and why I shouldn't be making a move southwards for the sake of the children - they need a permanent roof over their heads and at least one parent capable of putting bills before holidays!

clearingout

oh, a point to ask. When he moves into permanent work (I expect he will end up in a role with a local authority or the NHS), he will have no choice but to start paying the CSA. If this shows up in his bank statements, I assume it will be taken into account when assessing his ability to pay a mortgage back?