Heading for a split! Please help

Ian&Kel

Hi everyone,

Would really appreciate thoes in the know/mortgage advisors advice.

I'm heading for a split with the girlfriend I live with of 7 years. And I can't possibly afford to live on the current finances.

Old income, for both 40k, me on my own a measly 12k.

Mortgage 31k over 15 years. Fairly accurate, as next door is the same and for sale, estimated house value 90-100k. It's my house as I lived alone with a 21k mortgage and no debt before this relationship.

20k loan (same bank for both loans) 15 years
15k loan 15 years
2k Kitchen HP

As my income is around £800 a month to take home I can't afford a £300 a month mortgage, a £200 a month first loan and a £150 second one! Not sure on the kitchen as she paid for this but I shouldn't imagine it is too steep!

Obviously I would like to roll all this debt up into a single mortgage and then take it up to 25-30 years so the payments would half or so. But the banks would more than likely not let me as my income is low, unsure on credit. Isn't the amount of mortgage you can have based on other outgoings? Given that my other outgoings are about £400 will I stand no chance?

Please advise as I can't possibly survive on current finances.

Ian&Kel

Can nobody advise

JulieHK

Are the loans in your name only ?

Ian&Kel

No they are both in both, but they are secured on my house which means I would be forced to take them.

JulieHK

That seems a bit unfair !

So your total debts are £68,000, am I right ?

Ian&Kel

She also has a good deal of Visa debt in her name so she would have to take that. I don't have a Visa card.

It seems a bit unfair and we will remain friends so she may even offer to pay some. However she may decide down the line when we lose/or have less contact, why am I paying this. I suppose I can't risk somebody else paying off a loan that could make me lose my house should they miss payments.

Yes thats about right on the debt. Still under the house value at least so I don't suppose the overall problem is too worrying. Just the immediate payment failing that would occur!

JulieHK

You can do this, as long as this is everything you owe. It might also be wise to try and get a 2nd job.

Payments on £68,000 would be about £409 over 25 yrs. You need to speak to a broker who will find the lender for you. You are probably not looking at high street lenders, so go to a broker who will not charge a fee. This is not as difficult as you think.

Hope this helps,

Ian&Kel

Thanks for your help. It is total debt. I suppose one loan has been a couple of years down the line so may be less but I haven't taken into account redemption fees on mortgage which may be a grand.

And also the loans are Halifax loans and that was the loan taken out amounts for both. I don't know how these work when paying off early. Despoite having made payments the payoff amount may be more than the original loan taken out.

Rikki

Are you sure that she will not be looking for a part share of the equity in the house. It sounds like without her you couldn't have covered the mortgage and contributing to the house for 7 years means she would be entitled to something.

Have to two of you already agreed to seperate?

Ian&Kel

I'm pretty sure she doesn't however I am unsure of the legal standings on the house equity. Is it as bad as marriage or joint mortgage, I have no idea?

We split up on Sunday just gone and she is at her parents. However she is coming to talk tomorrow night but that could be mainly financial talk. We were actually planning on moving to a larger house and throwing all this debt and the equity into it. It would have meant our outgoings would be less and we would have a better house. We have both been stupid with debt and I think the looming debt has contributed to the split. It could be more nerves on both parts or the infamous 7 year hitch! It needs to be talked about certainly.

Ian&Kel

Ohh. Before we got together I was comfortable. A 21k mortgage over 25 years and no debt at all, I was actually earning more. I have only started this job 4 months ago following redundancy which contributed to the debt