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Mortgage Shortfall
Mickeymoos
Posts: 17 Forumite
Can anyone help? My daughter and her boyfriend have split up, they have sold their house, but are going to have a shortfall of around £8000. My daughter is willing to pay half of this debt, but her ex is saying he cannot afford to pay his half. Their mortgage provider just wants the money. Where does my daughter stand? If she pays her half, will the mortgage providers pursue her for the rest, or will they pursue her ex? Hope someone can help.
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I'm afraid they will pursue both of them as they are jointly liable. It's not fair, but it will happen.I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it.This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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How come there is shortfall of £8000 on the mortgage?
Is negative equity back to haunt us?"You were only supposed to blow the bl**dy doors off!!"0 -
has the lender removed their charge on the property? or has the sale halted until this problem is sorted? Normally a lender will not allow the sale to proceed if sufficient funds are not generated to pay off the mortgage.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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maninthestreet wrote:How come there is shortfall of £8000 on the mortgage?
Is negative equity back to haunt us?
Hi
- no they had an additional advance on their mortgage (boyfriend had a loan he paid off) and the redemption charge has resulted in this shortfall.0 -
Hi - the lender has just said the shortfall needs to be cleared - they did offer to loan the money at a rate of 10.5, but I am presuming my daughter can just take out a loan elsewhere at a lower interest rate and pay them with that.0
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she could take a loan anywhere, though this does mean she is taking on this debt on her own.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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So the boyfriend didn't pay his loan off, he changed it from an unsecured personal loan to a joint secured loan. If the shortfall is because of his loan then surely he should pay the whole lot?I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Her ex is saying he simply won't pay any of the debt - where does this leave my daughter legally, can she insist that the lender split the debt. She obviously doesn't want to get blacklisted over any debts, but can we force him to pay his half?0
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There are jointly liable for the debt. The only thing she could do is refuse to sell the house until he agrees to provide his share of the debt.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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