What Options do we have??

slim-sladey

Its quite a pickle but any help or advice would be greatly appreciated,

My current Partner has a Mortgage with her previous partner of 2005. The mortgage is an Interest only at £169,000 the term for this mortgage is coming up this june however, the current value of the property is between £125,000 & £140,000 giving us a negative equity of at least £29,000

Her ex-Partner was about to declare himself bankrupt so we have taken on the property however he has left it with 2 months in arreas.

We need to get my partners, ex-partners name off the mortgage and somehow find a way to start paying off the money owed on the property at an affordable rate.

Ideally it'd be great to think we could re-mortgage and start paying it all back instead off £800 worth of interest a month but how do we go about it where can we start, Northern Rock are refusing to talk to us about our options untill the arreas are paid which we just haven't got in a lump sum to pay them.

Any Advice or help would be greatly appreciated

Regards

getmore4less

AIU the only way to get out of this situation is if the EX goes bankrupt and you buy their benifial interest in the property from the OR, that way they(lender) have to let you be responsible for the loan.

You cant remortgage without a deposit and paying off the negative equity and arrears no new lender will touch you.

I don't think the lender will be interested in taking ex off the mortgage, one less person to chase for money.

Thrugelmir

You need to start paying off the arrears and then make inroads in the capital debt owed.

Spend the weekend drawing up a budget and seeing what you can cut back on to save money.

Conrad

It's unlikely you will be able to transfer the ex off the mortgage. The reason is that N Rock currently have 2 debtors to 'tap' for thier money, one way or another. Now you will say 'ah but he is not paying and may go bankcrupt' but in the eyes of the lender regardless of what he is doing they still prefer to people to try and make recoveries from.

When an account is in arrears both current signatories are seen as equaly liable for payments. As such they wont let your partner take on the mortgage alon as she has not been making full payments on time in full recently.Now you will probably say that's not her fault, but in legal terms it is her fault, regardless of what her ex has been up to. When she signed up to the original mortgage deed she agreed to be FULLY responsible for the entire debt, and as such there is no legal instrument where she can now say she was only responsible for halve.

Even without negative equity, no lender would currently touch her as she (in legal terms) has not paid on time in full.

Maybe if her ex goes bankcrupt she can then try and take on the whole debt but I'm not convinced the lender would go along with this - they may just repo as they might argue she has not demonstrated a propensity to pay on time in full. It would mprobably be down to a judge to decide.

As you say it's a pickle all round.

whatyadoinsucka

why don't you let the house get repossesed and live somewhere else and start a fresh. your partner will likely have to go bankrupt too. but at least you won't be holding a house with £30k negative Equity.

where are you currenty living, are you living in the mortgaged property !

slim-sladey

@everyone: the ex is willing to sign whatever to get his name off of the property but as you say N Rock are unlikely to allow this because of the financial status of the property,

so are we basicly stuck with the mortgage thats on it?? is there no way that we can change to a repayments mortgage or something other than an interest only mortgage??


@whatyadoinsucka: yes we are currently in the property, as for letting the house getting re-possesed wont that stuff us for mortgages for the future?? bad history/credit and all that??

Gorgeous_George

whatyadoinsucka wrote: »

why don't you let the house get repossesed and live somewhere else and start a fresh. your partner will likely have to go bankrupt too. but at least you won't be holding a house with £30k negative Equity.

Perhaps the OP and his partner have some self-respect.

GG