Secured loan - Mortgage arrear & LTV Questions.

Sean.Reflex

Hi All,

I'm hoping you can help me with my current situation.

My current partner has a house - I live with her. The house is in her name and her ex partners name - Her ex partner walked out on her in 2010.

The house was purchased in 2008 for 200,000 with a 100% mortgage. They also obtained a secured loan of £25,000 for refurbishment and to pay debt off.

Her ex partner is currently paying nothing towards the mortgage however he is paying half towards the secured loan.

The current house is valued between 205,000 - 215,000 due to the level of refurbishment that was done. The remaining mortgage for the house is 187,000. The remaining secured loan is 24,423. The interest rate for the mortgage is 6.7% if i remember rightly.

The mortgage payment is 1,220 per month and the secured loan is 158 per month totalling to £1,379 per month.

The mortgage and secured loan is both with Birmingham Midshires.

The early repayment charge is nearly 9,000. The fix term ends 1st June 2013.

In Feb 2011 my partner missed a payment for both the mortgage & secured loan which is still currently unsettled. I got with my partner and moved in with her a month after this. Since then me and her have maintained the monthly installments.

Her ex partner wants his named removed from the mortgage & secured loan as he doesn't want anything to do with it. Me and my partner want the house to be in our name.

My question really is what is the best way forward?

1. What is the best way to pay the still outstanding missed payment? Mortgage company won't CAP it. So we're thinking lumpsum via overtime money? We can't afford any more money on top of the mortgage to repay it off.

2. Once the missed payment is settled and we apply for the house to be in my name and my partners - Do I have to take on the secured loan too? Or can this stay in my partners name and her ex's? If I have to take the secured loan on then why?

3. And if we do apply we have a combined salary of £55,000 before tax etc - I have good credit, only CC debt, no loans, and hers is good however with the missed payment still looming. Would we stand a chance in getting it?

3. Obviously our payments are very high - Where would I stand in remortgaging if the name was to get into mine and my girlfriends name? Would I have to wait it out until I reach a 90% LTV? How does the house get valued?


4. Our ideal situation is payoff the missed payment, get the house in our name, remortgage to a better rate (if poss) and not have the secured loan in mine (keep it as it is). Can this be achieved? If so how?

I've tried to keep it short - Thanks in advance for your time and look forward to your replys.

Many thanks,

Sean.