Need some reassurance... 19 June 2011 at 9:58AM in Mortgage-free wannabe 9 replies 745 views

all4one

Hi all

Long been a reader of this thread, here's a quick summary of where I'm at...I wanted to be Mortgage free and over 10 years I got my mortgage down from 90k to 28k and I now have enough to pay it off outright if I needed to...........

However, I've had a bit of a whirlwind romance and got married - she is from overseas and has an outstanding mortgage of 35k.

I had an offset with YBS and was paying approx 1% above base (28k left to pay).

As she has had to give up her job and move to the UK it costs me £20 a month to send money to her account to pay the mortgage which is at 6.5%.

My idea is to remortgage with First Direct for the joint amount owned on both mortgage - please can someone reassure me this is the best approach ?

(Before you ask no we can't sell the house abroad as the family live there, its a dead duck as far as investments go - but guess thats what you get for following your heart !)

Thx in Advance

kingster2069

IMHO I would probably just keep sending the £20 month for the next year and then review the situation. £20 a month isn't too much to find each month, however £35K is a massive amount.

gratefulforhelp_2

I pray that your marriage is happy, long and blessed, however...I would urge caution.

all4one

Sorry, I may have given the wrong impression the relationship is very stable so I wasn't implying marriage advice I wouldnt to insure that the route I'm taking is the best route.

ps. I definetely don't want to continue sending the £20 and paying 6.5% abroad.

originalmiscellany

I think the tone of people here is general caution (esp on mfw) where by nature you clear your debts and live within your means

Their concern I imagine is from previous experience where people have been hurt/ripped off by "holiday romances" which I am not suggesting your is - and from what you've said quite the opposite.

Inho, the course of action you are thinking of would be right - you could get a mortgage to say 75% ltv of your house, and once it's in the account, transfer the full amount to clear your partners mortgage, leaving a larger mortgage on your house.

Out of interest would you get any money/rent from the house abroad?

originalmiscellany

Also, you won't be in a much worse position - outstanding mortgage = 35k, you have 28k to clear your mortgage, so in fact you'll only be extending your mortgage by an extra 7k?

all4one

Thanks for reply, no unfortuantely no chance of renting it out, however I do intend to keep it well maintained.

I was actually going remortgage for 65k as most of my savings are in ISA's - my plan is to save 10k a year in ISA (Stocks & Shares) until I get 100k then chuck it in a Saving account and hopefully get 5% interest a year sort of a pension so to speak - I've just turned 40 so 8 yrs more to that goal.

However I have thought about just paying off my mortgage and pay hers off in drips and drabs.....as we will look to move soon also.

Its never easy is it ?!?!?

Sepa74

I must admit I would be very tempted to shut down her mortgage because not only do you have the monthly fees, you also have the exchange rate risk - what if the ££ plunges or the currency of the other mortgage sky rockets?

all4one

Sepa74 - Yes that was another consideration, although sods law has it that with the Tories taking control the £ will rocket up and I could have paid it off for half.

Sepa74

lol... I know the feeling. When I moved to the UK the Oz $$ was incredibly low so my savings disappeared VERY quickly.

13 years later the Oz is so high that I couldn't afford to move home - not that I want to particularly!