Need advice from savvy people...

hotrod21

Hi, I'm hoping someone here can help me.
My boyfriend & I are on shaky ground. We have a joint mortgage, bought 5 years ago at £153000. Outstanding mortgage is £140000. Flat is estimated to be worth about £145000. If we split, he won't want to live in the same place as me. What are my options? I could afford the mortgage on my own but it would still be in both our names. If one of us wanted to 'buy the other out', what does that mean exactly? Would it mean applying for a new mortgage (with deposit etc), or a re-mortgage, or would the bank let us just take over the others responsibility? It's the first mortgage I've had & my parents live in the first house they bought so I don't know anyone who has been in this situation.
Can anyone help? If someone could explain in laymans terms, I'd be incredibly grateful.
Many thanks.

hcb42

You would need to remortgage on your own and earn enough to pass lending criteria.

hotrod21

Does that mean having another deposit though?

Gary123456790

No you dont need another deposit (only need a deposit to buy).

To take the mortgage on your own (i.e. get the other person off) you need to pass the lenders criteria so they are happy with just you paying.

This will depend on how much you earn, what you bank statements and credit report look like etc.

If you can give us an idea of the above we can give you an idea if this is likely.

Unfortunately lots of people are in the situation where they have split but the one left in the property cant take the mortgage on their own. In this case it might be better to sell up, have a clean break and start again on your own. You can feel glad that you are not in negative equity, because people in that situation cant sell either!

Gary.

hotrod21

Ok, my salary before tax is £30,000. I have approx £7000 in savings. No loans, credit card debts etc & my credit score is fine as far as im aware. Would remortgaging mean switching to a new deal? If I stay on the current one, it drops to 2.5% interest in June, which would be amazing.
Thanks so much for your help.

Thrugelmir

hotrod21 wrote: »

Ok, my salary before tax is £30,000. I have approx £7000 in savings. No loans, credit card debts etc & my credit score is fine as far as im aware. Would remortgaging mean switching to a new deal? If I stay on the current one, it drops to 2.5% interest in June, which would be amazing.
Thanks so much for your help.

Prepare yourself to sell the property. In the current market may take some time .

hotrod21

When remortgaging, do they do another valuation of your home?