Split up with partner, need mortgage advice please.

hotrod21

My partner & I have just split. It's wholly amicable at the moment. We bought a flat together in 2008. It was £153,500, we had 5% deposit & now owe £139,000. I'm on a good mortgage deal (2.9% interest) & I would like to keep the flat. I would give my ex a cash amount but I'm unsure about how the building society would react to me taking over the mortgage in my name.
Would I need to remortgage?
What are the chances of them allowing me to take on the debt? I earn £31,000 a year & have no other debts.
Thank you in advance for any advice you can give.

Katpin

have you got savings that you will be able to buy your partner out with?

It seems as though you'll need to borrow more than 4x your salary based on what you've written at the moment specifically assuming that some of the equity you will need to give to your partner.

ACG

It might be a touch out of your bracket on affordability.

If you can pay it solely on your own for say 12 months lenders may be prepared to say well youve been able to afford it on your own and can prove it so we will bend our rules a little - but there is no guarantee.

C_Mababejive

I'd be looking to offload the flat to her as it probably isnt worth what you originally paid ??

bigadaj

You need to get a current valuation done, as this will show current equity, if any, and conversely how much money you may have to give your ex.

hotrod21

I have no interest in offloading the flat as I doubt I'd get back on the property ladder for a long time. And I am the female in the relationship, maybe I should have pointed that out? Neither of us is interested in screwing the other one over.

I have £10,000 in savings. I don't really understand how 'buying someone out' works. I don't know anyone who has been in this situation.

bigadaj

hotrod21 wrote: »

I have no interest in offloading the flat as I doubt I'd get back on the property ladder for a long time. And I am the female in the relationship, maybe I should have pointed that out? Neither of us is interested in screwing the other one over.

I have £10,000 in savings. I don't really understand how 'buying someone out' works. I don't know anyone who has been in this situation.

That's why you need a valuation, current value minus mortgage gives equity , which you'll. Presumably want to split half from.

However as pointed out above you might struggle to get your lender to accept you can afford a mortgage, in which case you might have to sell unless you can find another lender.

hotrod21

If I could pay a lump sum & bring down the mortgage, would lenders take that into account?

dimbo61

Yes if you can reduce the mortgage amount and therefore increase the equity that you own in the property.
You need to have the flat valued by a surveyor and find out what its worth today.
Take away the current outstanding mortgage and you have the amount of equity in the place.
Divide by two and you have the amount you need to pay your EX.
Sort out the equity part first before you speak to your lender

C_Mababejive

hotrod21 wrote: »

I have no interest in offloading the flat as I doubt I'd get back on the property ladder for a long time. And I am the female in the relationship, maybe I should have pointed that out? Neither of us is interested in screwing the other one over.

I have £10,000 in savings. I don't really understand how 'buying someone out' works. I don't know anyone who has been in this situation.

Apologies. I thought the sobriquet "hotrod" might have been indicative of the male gender...