joint mortgage but split with partner... pls advise best action

jumbopants

Hi All...

Me and my partner have decided to go our seperate ways, at the moment we are still in the same house, in order for me to stay in the house she wants 90k to get out and keep her car...

The joint name mortgage is with nationwide, remain balance is 62685.00, of which 22685 approx is on repayment and the balance is interest only as I have a Aviva with profits endowment to cover this also in joint names, which I've always paid, and will get trasfered to just my name...

So to cut a long story short, will any lender, loan me a further 90k on top of the 62685 outstanding, the house is worth 250k, so LTV ratio is not too bad, my salary is 33k per anum..

I don't really want to try and sell the house and split what's left, I'm happy to stay, and can more than afford it on my own, I have no other outstanding debt...

I've rang Nationwide, but they have said that they can't advise over the phone and I'd have to go in to go through things, but I want to have a plan B if they say NO. I did have a 3 yr tracker but that finished last year and I'm not in any early repayment penalty with them,

Any advice would be most appreciated as to firstly would anyone lend me the additional 90K ? and if so who would be the cheapest....

Cheers,

Justin

rising_from_the_ashes

I think the problem may be the income multiple - if I've read the above correct, you'd be looking at a mortgage of around £152,500.

The LTV rate would still be OK but you'd be looking at over 4.5 x your salary which you may struggle to get in the current climate.

jumbopants

Yes approx. 150K, I have approx 30K in a natwest ISA but really did not want to touch it, as it's for a rainy day, sounds like it may be raining already though...!!!

I could also cash in my with profits endowment, but it only has 7ish years left, but is only worth around 18k I believe at the moment if I cash in early...

But If I use isa saving and cash in the endowment that's all my rainy day savings wiped out with no buffer....

Also would my age count against me now being 41 ??

rising_from_the_ashes

Not an expert but £120k would bring it under 4 x income multiple so would prob stand a better chance - best thing would be to have a chat with a broker (I'd not want to cash in the endowment either unless essential).

A lot of lenders will let you have a fairly long mortgage period which can go past 65 in some cases if you're able to afford the payments either through a pension or if your retiral age is higher than that etc

Dave_Ham

I actually think this is achievable, although you would better taking the entire mortgage away (subject to current rate of course)

Then you are at the upper end of borrowing and whilst this is achievable it may not be on market leading rates.

Cant comment on the car though!

All the best

Thrugelmir

jumbopants wrote: »

Also would my age count against me now being 41 ??

When do you intend retiring?

jumbopants

. I have an excellent works pension, so my aim is 65....

getmore4less

Is £90 fair? (and car? did you buy it? how much?)

Whats the history of input.

Is it realy worth £250k, what about net proceeds on a sale are you really likely to clear £180k

HappyMJ

getmore4less wrote: »

Is £90 fair? (and car? did you buy it? how much?)

Whats the history of input.

Is it realy worth £250k, what about net proceeds on a sale are you really likely to clear £180k

I was sort of thinking that but I suppose if the OP keeps the endowment policy and also has a £30,000 ISA and a decent works pension then based on the combined net worth then it may be fair.

Technically there is only £40,000 due on the mortgage due to the endowment offsetting a large part of it so just based on that then they should clear £90,000 each (accounting for some sale costs).

jumbopants

Car was 17k brand new 5 years ago, and we went half on the loan for it which has now finished, the house down the road is identical as its a new built estate, I think 90k is about fair, if I start haggling and it gets messy it could end up at solicitors and I want to try and avoid that if possible ...

Gona see if I can make an appointment to see nationwide today, also been with HSBC for 30 years so may sound them out too...

kingstreet

What's the current Nationwide rate?