Remortgage after divorce

alwaystrying_2

Hi,

Am living with a complicated situation. My partner bought a flat (c.£200,000 on an interest-only mortgage) with his ex-wife in 2007. She moved out in 2008, leaving him to cover the cost on his own.

I moved in in 2009 and have been paying the mortgage either in part or in full ever since (he became unemployed at the same time his mortgage payments went off fixed rate and more than halved - he is now back in work). He would now be able to meet the mortgage repayments on his own, but has an agreement with his ex-wife to buy her out of the mortgage after November this year. Due to the year out of work, his credit rating is not what it could be.

For personal reasons, I don't know whether I can commit to taking out a mortgage with him, although I have no immediate plans to move. But I have many questions. What are his options regarding remortgaging? Are there mortgages that we could get that would permit us to sell the flat within a year without penalty? Can they take my contribution to the flat finances into account when calculating his income? Does the fact that he has been covering the mortgage costs for three years without his ex-wife mean anything in terms of who is owed what?

Basically, can anyone advise if there is a way to keep the flat (without my entering into a mortgage agreement, or at least without tying myself in for years)?

Thrugelmir

What is your partners salary?

How much is the property worth?

How much is due to be paid to the ex?

alwaystrying_2

Partner's salary is around £29k. (Mine is about £30k.)

Original cost of flat £186k. Partner paid £10k deposit but also took out £10k loan with same provider for home improvements. Current value would be somewhere between 185k and 205k, we think (based on local prices).

Ex chiefly just wants her name off the mortgage so she can get a new one. Has signed a declaration to take on a share of any losses incurred but not seek a share in the profits. The deposit was paid by my partner's parents, so theoretically this would revert to him. Not sure about early repayment penalties.

Apologies if this sounds confused. It is not my situation and am a bit hazy over the details. Partner did not originally want to buy and has been left to handle very difficult situation.

If we remortgaged with the same provider, would we have to find a new deposit and pay all charges again? Are there mortgages that would allow us to sell after, say, a year, if we split up?

Health poor and work situation fragile at the moment. Very stressed at the prospect of losing home but also not wanting to create further complications. Any advice gratefully received.

Thrugelmir

Taking into account all the factors you have mentioned about yourself. Do not become personally involved financially in the situation. A mortgage should be treated as a lifetime commitment. Not something that can be changed at a drop of a hat.

In view of his salary alone. The mortgage debt appears unsustainable. Bearing in mind its interest only.

So perhaps best to sell the property. Take any losses on the chin. The ex will be liable to half of them. Then rent somewhere.

This will give you time to see how life unfolds with maximum flexibility. Then if everything works out you can buy jointly at a later date. Knowing that its a longer term decision.

bristol_pilot

It is very generous of you to pay a mortgage on a property when your partner is paying nothing and his ex is going to end up owing half or more of the property and perhaps throwing you out of it.

Many people in your situation would stop paying, move out and tell their 'partner' to come back when he is no longer a financial liability. As it is, you are basically giving your salary to his ex.

bristol_pilot

alwaystrying wrote: »

The deposit was paid by my partner's parents, so theoretically this would revert to him.

Probably not. Starting point for an ex is 50%, who paid the deposit is not taken into account.

hcb42

sell it and rent. Dont even think about getting a mortgage for a year, if you indicate you might split up anyway...

alwaystrying_2

Many thanks to Thrugelmir for your measured response... I will consider.

bristol_pilot wrote: »

Many people in your situation would stop paying, move out and tell their 'partner' to come back when he is no longer a financial liability. As it is, you are basically giving your salary to his ex.

Possibly a bit harsh... The past year has been hell for trying to find work in his field and personal situation is very involved and complicated on both sides. Also, am currently paying much less for the mortgage than I would to rent somewhere decent on my own, and couldn't afford to buy on my own (except part-buy part-rent) so likely would be giving my salary to *somebody*. But thank you, genuinely, for your input. Need all the perspectives we can get.

Thanks to all the replies so far. Any other advice appreciated, from all but especially from anyone who might have been in a similar situation.