[HELP!] Relationship split leading to unpaid mortgage

Pippy2002

Hi Guys,

I've hit rock-bottom & I need some advice / guidance or just an opinion on where I should go & what I should do. Here's the story in a nutshell....

Six years ago my ex-partner & I bought our first house for £100,000 - the mortgage was a 100% *INTEREST ONLY* deal and with the additional fees etc we ended up borrowing £105,000

The first year was great all bills paid on time and in full and my ex decides she wants a new car, strapped for spare cash we took out a secured loan against the property for £12,000

Six months later I come home from work early to find her in bed with another man and as a result of her matinee bedroom antics I decided to end the relationship and promptly moved back to Mum & Dads.

On separation we agreed (verbally) she'd pay the mortgage (and continue to live at the property) - this amounted to around £450 PCM and I'd pay the secured loan of around £350 PCM

Several years subside without contact and out of the blue a letter from the mortgage company kindly informing me she hasnt paid hardly a single penny in 6 months!!

I was furious - I contacted the mortgage company (Mortgages PLC) who told me because it was an interest only mortgage the arrears on the property are now £112,000 - PLUS - the secured loan remainder of £6000!!!

Now - my issue is, I havnt lived there for a good 5 years - I just want off the darn thing. However - the mortgage is in arrears, the property is in MASSIVE negative equity (I'd estimate the property value to be no more than £95000 max) and the debt is just spiralling.

My ex-partner does not work due to a back "injury" and so the DWP pay towards the mortgage - her opinion on the whole situation (and I'm directly quoting her) "Why should I move out - as long as I dont find a job the DWP will pay and I can live rent free".

I have offered her £3000 cash to move out and let me move in and take over the property & bills but she simply wont budge!!

What can I do?...

I was advised by a solicitor to stop paying the secured loan (which I have done) as;
1. Im am not and have not benefitted from it anyway
2. Why should I pay for her to zoom around in a swanky BMW
3. The secured loan company will reposess the property quicker than the mortgage company...

He advised me, once reposession has taken place they will chase us for the remainder, he said "it's at this point you declare yourself bancrupt".

Given my confusing situation have I been advised correctly?

Many thanks,

:D:D

Annisele

I'm afraid I can't help on most of that - but I'd be surprised if the secured loan company repossesses the property.

Your mortgage lender has a 'first charge' on the property, and the secured loan guys have a 'second charge'. So, if the property is sold (either after repossession or otherwise), the mortgage lender gets first dibs on the money. The secured loan guys only see a penny once the mortgage loan is paid off in full.

So, if the property was repossessed tomorrow, that wouldn't benefit the secured loan guys - they'd just have the property sold out from under them and they'd lose the security. If the property isn't repossessed, then there's a chance the value will eventually rise and the secured loan guys will get something out of it.

maninthestreet

Your Ex has more to lose if the property is re-possessed - she will be homeless. Are the arrears really £112,000, or is that just the total amount outstanding, so the true arrears are £112,000 -£105,000 = £7,000 ?

getmore4less

She can't stop you movong back in.

Suprised she is getting mortgage support if it is a joint mortgage they should have your detils s well.

wonder if she lied on the claim forms..

Yorkie1

I'd consider moving back in too. She will then have to declare that to the DWP and they will probably reconsider her benefits.

You might also find it worth posting about this on the Bankruptcy board as there are even more experts over there; just say you posted here first and were advised to go over there for opinions.

suburbanwifey

Move back in and ruin her life like she has almost done to you and is continuing to do by getting you in the mess you are now in. That's what I would do, move back in, she can not legally stop you doing this. Make her life miserable (take women back) and drive her out. Probably the only way to remove this noose around your emotional and financial neck.

She deserves nothing being caught in bed with another guy. Play hardball, you've been too soft. People like her only respond to hardball or they take the mick x

Comyface

Pippy2002 wrote: »

Hi Guys,

I've hit rock-bottom & I need some advice / guidance or just an opinion on where I should go & what I should do. Here's the story in a nutshell....

Six years ago my ex-partner & I bought our first house for £100,000 - the mortgage was a 100% *INTEREST ONLY* deal and with the additional fees etc we ended up borrowing £105,000

The first year was great all bills paid on time and in full and my ex decides she wants a new car, strapped for spare cash we took out a secured loan against the property for £12,000

Six months later I come home from work early to find her in bed with another man and as a result of her matinee bedroom antics I decided to end the relationship and promptly moved back to Mum & Dads.

On separation we agreed (verbally) she'd pay the mortgage (and continue to live at the property) - this amounted to around £450 PCM and I'd pay the secured loan of around £350 PCM

Several years subside without contact and out of the blue a letter from the mortgage company kindly informing me she hasnt paid hardly a single penny in 6 months!!

I was furious - I contacted the mortgage company (Mortgages PLC) who told me because it was an interest only mortgage the arrears on the property are now £112,000 - PLUS - the secured loan remainder of £6000!!!

Now - my issue is, I havnt lived there for a good 5 years - I just want off the darn thing. However - the mortgage is in arrears, the property is in MASSIVE negative equity (I'd estimate the property value to be no more than £95000 max) and the debt is just spiralling.

My ex-partner does not work due to a back "injury" and so the DWP pay towards the mortgage - her opinion on the whole situation (and I'm directly quoting her) "Why should I move out - as long as I dont find a job the DWP will pay and I can live rent free".

I have offered her £3000 cash to move out and let me move in and take over the property & bills but she simply wont budge!!

What can I do?...

I was advised by a solicitor to stop paying the secured loan (which I have done) as;
1. Im am not and have not benefitted from it anyway
2. Why should I pay for her to zoom around in a swanky BMW
3. The secured loan company will reposess the property quicker than the mortgage company...

He advised me, once reposession has taken place they will chase us for the remainder, he said "it's at this point you declare yourself bancrupt".

Given my confusing situation have I been advised correctly?

Many thanks,

:D:D

To answer your question, yes I think it's possible that you have been advised correctly.

But if I were you, I'd pop over to the bankruptcy board, they're probably better placed to help you in that area. Bankruptcy is not right for all - will it affect your job for instance?

woody2234

so if you live in social housing then government pays and if you have a mortgage with a bad back or a "make up a story injury" then the government also pays for your house and car and 5 holidays to disneyland paris and skiing in france or switz and st tropez and dubai and maybe the london hilton for the olympic games, the streets of britain are paved with gold not just london

CBR600F_2

She sounds like a keeper. Go round with a bargain bucket of fried chikkinz, some zircon-encrusted jewellery from Argos and try to woo that b*tch. Either that or arrange for her to have a little accident. I don't care which.

[Deleted User]

If her benefits are covering the mortgage then why is it in arrears?

Is she receiving the money and just not paying it to the mortgage provider?