Mortgage to buy ex out

callyh26

Can anyone offer advice. My partner owns a house with his ex the mortgage was taken with Future Mortgages in 2005. There is around 69,000 owing on it. Its always paid on time and is up to date. A secured loan with Ocean(Endevour Finance) was taken and there's currently around 15,000 owing. They split up in 2009, and since we met in 2010 he is paying the mortgage and loan by himself. Basically he wants to buy her out. The house was valued last year at about 85000 i think. Can anyone advise whether he would be able to get a mortgage by himself? He is 29, works full-time in a job he's been at around 7 years. After tax he comes home with around 1700 pcm, so i think about 2200 before. He has a few debts (but is paying these back) i think around 1900 on a YB cc, and about 1500 in some old gas/telephone bills. Unfortunately he does have a couple of defaults on his credit file. Does he have any chance of getting a mortgage to basically get rid of her! As he like i say is paying everything and the house needs a lots of work new windows, updating etc and we dont want to pile our money into it for her to turn round and tell him to sell! Any help/advice appreciated Thanks

ACG

Sounds like these defaults havnt been cleared yet?

If thats the case, he may struggle to get the ex off the mortgage any time soon.

callyh26

i think they were given in 2008? cant be sure with out re checking credit file. One of them will shortly be changed to settled as he's just had PPI payout from Welcome and they have closed and settled the account (it was in default)

callyh26

So is it likely he'd have to wait for the defaults to clear from his credit file. I.E if they were given in 2008 it'd be 2014 when they clear?

Thrugelmir

Given the state of your partners finances and credit record. Along with lack of equity in the property. The likelihood of remortgaging are extremely slim.

Suggest you tackle his debt issues first. Then reduce the debt on the property to a level which enables him to clear the debt totally if the property is sold.

In the meantime start saving.

From there start afresh with a new beginning.

ACG

Paying them off would be the better option - both morally and in the sense of his credit file.
However depending on who the lender is how much and how many defaults, they may still not accept him alone.

To be honest the more i think about this the less chance i think he has.

callyh26

The problem is (from my point of view anyway) is that 2 years ago he agreed to pay the loan which is 200 pcm in the hope he can eventually get a mortgage to buy her out! But the house is unliveable at the minute plus he's paying the mortgage and bills whilst the ex pays nothing. She doesn't want to contribute towards maintenance etc and i dont want him to carry on paying the loan by himself if she then makes him sell! For all we know she could just wait till he's paid enough off loan to gain equity and then force him to sell! Meaning he's payed it all back by himself for nothing!! We have 2 children and one due in 8 weeks and cannot at the minute live together because of the situation, and we want to live together but the house needs alot of work and i dont want to move in with her on mortgage, still having keys etc pile our money into it for her then to make him sell! I think correct me if im wrong, he'd be better putting it on market therefor making her then pay her half of loan and mortgage, selling, getting rid of her then spending next year paying his debt back clearing up his credit file then getting his own mortgage??

Thrugelmir

Based on what you've posted .

As the debt, mortgage and secured are in joint names. Then sell the property now.

ACG

Has he signed anything to say he will meet all the payments etc? Anything in email or writing?

If not, do the house up if its financially viable to do so - sell the house. any profit keep, if she asks for any of it then tell her you will deduct the payments she hasnt made and pay her anything outstanding.

callyh26

No i think was an agreement over phone i think. But im happy to do it up if we don't then get ripped off. I was thinking of getting a valuation in the current state then Is it possible to get a solicitor to draw up a letter basically saying that from this date / valuation if/when the house is sold any payments made by my partner for the mortgage and loan would be deducted from her share if its ever sold. Plus any repair work and added value?

callyh26

At the minute he also gives her the cash for the mortgage payment but i think this is foolish as it looks like she's paying it. The loan does come from his account, should the mortage also?