Re-Newing Mortgage whilst waiting to sell

Cobbler78

Hi,

Myself and my partner have recently split up and she has moved out and is renting elsewhere leaving me to pay the mortgage on our joint property on my own. I am with Accord and the fixed rate is 4.39% but this deal ends in March meaning the SVR is 5.99% which will be just too expensive for me to afford.

The house is on the market looking to be sold, but as yet there have been no takers. I have asked about getting a new fixed rate deal with a much lower rate but that has no early repayment charges, this would have solved the problem, however my ex has a very bad credit history so no many lenders won't touch us.

I suggested just myself getting the mortgage on my own and signing something to secure my ex's equity. And having this secured with my parents as guarantors, however, my ex was not 100% comfortable with doing this, and also I dont think my parents income was sufficient for the to be eligible to do this.

Does anyone have any advice or ideas as to where I could go from here??

Thrugelmir

Remind your ex that they are still liable for the debt. That they cannot just walk away from the situation. Suggest that they they assist until such time as the property is sold.

Is there any equity in the property?

Cobbler78

Yes, the Mortgage is about £148k and the house is valued at £200k. I have mentioned this to my ex, but she has told me that as she is renting elsewhere, I am in effect renting half the house from her while I live in it on my own. I know this is probably not true, however, there is no way of me forcing her to pay money towards the mortgage, she has too many debts and says that she can't afford it.

Wh05apk

To remortgage now would be foolish, you would likely incur costs, there are very few remortgage deals with no erc's either.

You would do best to approach Accord, explain the situation and ask to transfer to interest only until you sell, make sure you price the property realistically and go for a sale in a reasonable time.

Cobbler78

Even that will mean mortgage payments of around £750 per month and I ony take home around £1325, I am on interest only at the moment but at 4.39% its only £540 which I can manage.

Soot2006

Perhaps lower the sales price? Might be worth in light of your situation and risking that a) you will pay either higher interest or ERC b) house price might drop anyway and then you're not better off later than sooner.