Large Mortgage and now single parent, advise please

sonastin

Does your ex want half of the equity if you sell? If so, and if you managed to sell for what you think it is worth, and you managed to persuade the loan company to secure the loan against your next property instead you'll only have £7k to put towards another property (unless you have savings? - doesn't sound like it from your post). Nearly all mortgages available need at least 10% deposit these days so you'd be looking at properties for £70k - which fits with the affordability needs for paying it back but probably isn't the sort of place you were hoping to move to? Even if your ex lets you keep all of the equity if you have custody of the kid(s), you'll get a better mortgage rate with a higher deposit but they might not lend you as much as you need for the sort of houses you want to live in...

Alias_Omega

How about moving in with your parents, and renting the house.

Rental income could be used to pay the interest part of the mortgage, leaving any remaining cash (ie the mortgage payment) to be used on the secured loan.

Becoming a landlord can cost as little as £200 per year, though i doubt you would get the consent to let from the mortgage company, but could be worth considering.

Alias

skintmummy

The oh wont want any equity as this will be used against the secured loan and also I out £9k dep down and we have only be paying interest only.

Not really any way out of this mess really, will just have to try and keep paying everything as I am at the moment all my debt is being serviced and I am managing just worried about the future and what my options might be.

Alias_Omega

Like i said above,

If you could get consent to let on the house, for a period of 3 years. You could potentially let the house through an agent, and use this income to repay the interest part of the mortgage. I am unsure on what your house would let for, but it may cover the mortgage.

Then if you lived with friends/family. The mortgage payments you were paying yourself, you could either overpay on the mortgage, or even use this cash to put towards early repayment of the £25,000 loan, or even to clear the £1,000 debt.

Just an idea..

evoke

How are you planning to pay the capital amount borrowed on the current property given that you currently have an interest-only mortgage and who do you think will then offer you another interest-only mortgage on any new property?

grey_lady

Sounds like hanging on for the time being and trying to pay down the loan is the way to go, see if you can earn a bit more or spend a bit less to make over payments on the loan, once it's paid off you could then use the extra to switch to a repayment mortgage.

Also worth getting legal advice, is your ex really getting to walk away leaving you in negative equity? (after allowing for the loan) and now that you know his name can't come off this mortgage what happens if he wants to buy somewhere else?

Sorry just realized that your ex is going to pay half the secured loan, but still think your a bit stuck until that's clear and your also in a position to take out a. Mortgage on your own.

puddy

you could rent a small 2 bed flat, which hopefully would cost you much less than you would get in rental income from the house if you rented that out?

obviously that comes with its own problems but if you could do all the sums and the practicalities, you may be better off, smaller bills, smaller council tax payment etc etc