Mus i have a isa to cover intrest only mortgage

ilovebella

Will be great if anyone can give me advice..cut a long story..was with my partner 10 years..have 3 childen..mortgage is for £130,000, house worth £200,000. He hs left me.He is not willing to pay maintenance (self employed so no point using CSA) and will not contribute to the mortgage..he says i live in it..i shall pay it!..I hav asked my mortgage lender if i can go onto an intrest only (currantly £705 repayment) they said ..yes..but only with an endowment or Isa..when i work out the quotes of an Isa..(in region o£250 a mth) combined with the intrest only amount..(£405 a mth)would only bring the total mortgage down by £55 a mth!!! I hav no intention of staying in the house much longer than a couple years(untill i get on my feet)..so will not be actually using the Isa to pay off anything! (i know it's form of saving..and i wil get that back...but when i have yet to find a job..and meet all bills on my own.£250 a mth is very scary!) i know most of you will say sell.but for 1 i can have help from famliy tax to top up my wage if need be.for 2 this will go if i sell the house and have over a certain amount of savings...don't want to live and pay bills from the equity i recieve!) yet won't be able to get a mortgage on my own!Can the mortage company MAKE ME?...regardles i could manage the intrest only payments AND i will sell in the next couple of years.Please remember..i am not in arrears.have managed to pay it since my ex eft..and have a very good credit rating (something i think my ex wants to destroy!!) PLEASE ANY ADVICE WELCOME!:o

opinions4u

Please could you try to paragraph your post. I'm finding it difficult to follow. Others may be better placed to post a helpful reply if you neaten it up a little.

If I have understood properly:

- a mortgage lender does not have to allow you to go on to interest only.
- if they do, how will they ever get their money back?
- there is little point switching to an ISA backed mortgage if you're struggling to meet the payments.
- if your ex is named on the mortgage, but you're making all the payments, you are building up a dispute in the futurre about who gets what when the house is sold. You could do with taking legal advice to resolve this now.
- you should consider selling, clearing debts and renting. You can't afford this and your ex is going to benefit at some point in the future from you paying his mortgage for him.

[Deleted User]

Yes, they can make you prove you have a repayment vehicle if you want to borrow money from them. They'll be quite keen to know you can pay them their money back at some point.

maninthestreet

Bottom line is, you can't afford to pay the mortgage on your own, so you can't afford to continue living in the property. Sell-up and downsize to a cheaper property.

dunstonh

but only with an endowment or Isa..when i work out the quotes of an Isa..(in region o£250 a mth) combined with the intrest only amount..(£405 a mth)would only bring the total mortgage down by £55 a mth!!!

The whole point of interest only mortgages backed by an investment vehicle is to offer greater potential. I suspect that you are not using a suitable target growth rates on the ISA if you are finding yourself £55pm better off. Typically you find nowadays that the investment backed mortgage route is more expensive when suitable target growth rate is used (endowments went on to suffer as they usually hard target growth rates that were suitable for the 1980s and not the 2000s, so whilst being cheaper than a repayment mortgage each month people ended up with shortfalls because they were not putting enough aside).

The FSA has told lenders not to use interest only as a means to make mortgages affordable as you are just putting it the inevitable.

zzzLazyDaisy

opinions4u wrote: »

- if your ex is named on the mortgage, but you're making all the payments, you are building up a dispute in the futurre about who gets what when the house is sold. You could do with taking legal advice to resolve this now.
- you should consider selling, clearing debts and renting. You can't afford this and your ex is going to benefit at some point in the future from you paying his mortgage for him.

This is a really important point.

OP you referred to your ex as you partner. I take this to mean you are not married? If so, and if the house is in joint names, it doesn't matter how long you live in the house, or how much you have paid off the mortgage, he will still be entitled to half the net equity when you sell. The situation is different for married couples because the courts have the power to adjust who gets what on divorce.

Thrugelmir

He is not willing to pay maintenance (self employed so no point using CSA)

Doesn't matter if he is willing or not. He is liable........

If he refuses to make voluntary payments then refer the matter to the CSA for collection. Self employed people are no different to employed.