Child Maintenance, Negative Equity and a general Sticky Wicket...

N3R0

Hi guys,

I'm separated (looking to divorce soon) and my house is selling for £250k. My mortgage is £258k w/ a £7740 Early Redemption Penalty with RBS. Leaving a total of £21k that needs to be paid to cover the bills for sale (Est. Agency fees/ Mortgage shortfall/ ERP/ Solicitor Fees).

I have paid all of the household bills since my son was born (more or less £1800 p/m). but I understand that being the non-resident parent to our 3 year old son, means that this negative equity and the ERP are essentially now MY debt? Regardless of the fact that it's a joint mortgage and that I have my son for 40% of the time?

I have been SHOCKED by RBS and their after-sales service. I asked on multiple occasions for a 'stay of execution' from RBS but they have told me that my only options are to (1) Keep paying (2) add any missed payments to the total loan and increase the repayments accordingly (3) default on my payments (the end-game here would presumably be reposession!). Incidentally, I never missed a payment, thanks to family...

Have I missed anything that I can do to minimise the financial pain (for instance, is it an option to appeal against such a high ERP)?

Thanks for any help!

cabbage

AFAIK if its a joint mortgage then the shortfall will apply to you both. Joint mortgages are classed as joint and several that means the lender can come after one or both of you for the full amount. Could you agree to split it as part of the divorce/separation proceedings.
Not sure there is any comeback on the ERP - check your mortgage offer for the full terms but i expect as you signed at the time and knew the terms there is no get out clause for that one.

Has the lender agreed to the sale?

N3R0

Gutted about the ERP...

They've just said that as long as the total debt is transferred to them on the day of completion, they don't care what I do or how I do it! (paraphrasing, obviously!).

I'm just trying to decide if it makes more sense to get the ex to contribute (not sure she's actually able to!) or to take on the debt and she'll avoid pursuing me for maintenance for the duration of the loan. I've actually got no idea of the percentage of my income the CSA take?

surreybased

Hi,

It would be worth checking the CSA site for guidance but it's 15% of net salary less some deductions for each overnight you have your son. Child maintenance is payable and will be enforced if your ex went to the CSA (irrespective of any agreements you thought you had made). ie you could end up having to pay the loan and CSA.

I would suggest taking legal advice if you haven't done so already as the house sale, child maintenance and divorce is too complex to go through without input.