Need to sell house following divorce

monstermunching

I separated from my wife last year and we had a joint mortgage together, I still live in the house we shared together and she has moved to America. I have been paying the mortgage ever since she left, she hasn't contributed a penny. It is now coming to the end of the divorce and we are trying to sort settlements out. The house has been on market for over a year with very little interest. As I am living in the house, I have tried to take the mortgage into my own name and Santander have today told me that I can't afford to do this! I passed the credit check but apparently with my outgoings I do not have sufficient funds. I consider this ridiculous when I have been affording the mortgage myself for past year. I need to move out of the house desperately as I work 40 miles away and it really doesn't make economical sense to keep, so I planned to rent it out, subject to mortgage being approved. Now Santander won't let me remortgage in my own name, what can I do?
Options I have are:
1. Trying to remortgage with another bank, although due to Santander's reaction, that's unlikely.
2. Default on mortgage and move house, this will result in house being repossessed. Has anybody had experience of this?
3. Use one of those agencies that buy your house for less than market value and then I could make up difference with my unsecured loan to pay off mortgage
If anybody has any experience/advice about what to do, I would really appreciate it as I am so fed up!

beecher2

If the house has been on the market for over a year, then you probably need to cut the price.

If you post details of the outstanding mortgage, house value (realistic, not what it is up for sale at the moment) and salary, someone can maybe give you more pointers.

monstermunching

House is worth about £81k, we owe £70k on mortgage. I earn £34k a year. House has been dropped several times from £89k and asking price on house is now at £76k, although still very little interest.

dimbo61

Sorry you earn £34K a year and cant afford a £70K mortgage !!! what are your outgoings ?
have a look on the debt free board and look at ways to cut your bills/spending.
Dont walk away from the house and let it be repossed as this will effect your credit score for the next 6 years and maybe even longer

hcb42

do not do 2 or 3..whatever you do.

In fact you dont need to let it out either. 40 miles is not a huge commute, (I have done more for most of my career) you have a reasonable income and low mortgage, so you could stay put for a year or two and review...hopefully you are on repayment so equity will increase, even if only slightly.

I dont understand why the bank refused a loan on that salary either, unless you have other significan credit commitments

monstermunching

dimbo61 wrote: »

Sorry you earn £34K a year and cant afford a £70K mortgage !!! what are your outgoings ?
have a look on the debt free board and look at ways to cut your bills/spending.
Dont walk away from the house and let it be repossed as this will effect your credit score for the next 6 years and maybe even longer

I can afford it easily, it's the bank that says I can't. This is despite the fact that I have been paying it since my wife left, and if I'm I am honest before she left too!

I am trying the get the house in my name so that I can let it out and move closer to work, it's not just the commute but the nature of my job which means I can rack up another 60 miles a day on top. Fuel is bloody expensive!

monstermunching

hcb42 wrote: »

do not do 2 or 3..whatever you do.

In fact you dont need to let it out either. 40 miles is not a huge commute, (I have done more for most of my career) you have a reasonable income and low mortgage, so you could stay put for a year or two and review...hopefully you are on repayment so equity will increase, even if only slightly.

I dont understand why the bank refused a loan on that salary either, unless you have other significan credit commitments

I owe about £8000, a legacy from the days when my almost ex wife was here! She moved to the US where no one can touch her. That really annoys the debt collectors I have calling for her! Luckily the bulk of the debt was in her name only.

hcb42

perhaps there is something on the credit record from your wife that is worrying the bank...?

As for the travel and your prev post, I understand the cost issue, was driving me mad on my last 110mile daily commute, but surely the miles you do as part of the day are business miles, and should be expensed as such...

monstermunching

hcb42 wrote: »

perhaps there is something on the credit record from your wife that is worrying the bank...?

As for the travel and your prev post, I understand the cost issue, was driving me mad on my last 110mile daily commute, but surely the miles you do as part of the day are business miles, and should be expensed as such...

The miles I do at work are reclaimed but the 80 miles round trip isn't. Fuel is now almost 60% higher than when I first started working there, strangely the expenses aren't!

All in all it's crap!

hcb42

yep I know it is...but it is an option too avoid all those moving fees...by just commuting