Mortgage advice needed

charley83

Hi all,

I am in a difficult situation at the moment which I would appreciate some advice on...and this gets quite complicated!!

Basically, I have had a mortgage for some years now but 2 years in and me and my partner split, leaving me in a 2 bed house with a joint mortgage. We have a child together and as we remained friends we agreed for it to stay as a joint mortgage and I would continue to pay the mortgage and live their with my son. We knew that we'd have to go to court to have things changed so it was just easier that way. We bought the house at times when house prices were high and unfortunately the house is now worth thousands less than when we bought it. On top of this, we were on a fixed rate (which was ok at the time) and for part of the time interest only. In all, the house has basically no equity after selling fees etc if we were to sell.

Now it gets more complicated...

A few years ago I got with someone else and we're very settled together though we live apart. We have just found out that I am pregnant. As we had planned to have a child in a few years time we had started saving but this is still in the hundreds rather than thousands because we didn't plan a baby so soon. We have combined earnings of 40k. We would like to live together when the baby is born but this will be very difficult in the house I have as it is small and as I say 2 beds. Additionally, my son is nearly 7 so it isn't good for him to share with a baby, especially if we have a girl.

My ex has offered to have the mortgage signed over to him to avoid selling/exit fees and he'd then have the house.

I really don't know what options I have in terms of housing. I have a professional job and a perfect credit score. Would we be looking at a minimum 10% deposit for mortgage?? I want to stay local but renting around my area is 600-1000 for a 3 bed house and I would rather buy than rent. Are there any other options we have???

All advice appreciated

hcb42

I would think you will need a deposit, there are no 100% any more.

charley83

Does anyone know of any other options (in terms of renting or extending perhaps)??

As an additional query, as I already have an existing mortgage and my partner has never had one, would we be classed as first time buyers or not??

We can save for a deposit but unfortunately houses around my area are expensive - £170k at least for a 3 bed semi and I don't want to move too far from my son's school. I know we won't get a mortgage for anywhere near that but just wanted an idea of % deposit would be required. I have a perfect credit score of 999. My partner has a good score, but due to some missed payments on a loan (now fully paid off) not perfect.

I am grateful of any help, as you can imagine this is a stressful time for us at the moment.

Kind regards