No way out?

simonts

Myself and partner (Now Ex) took out a mortgage in May last year on our first house together (Great foresight I know)

I am now seemingly stuck in a no way out situation.

She wants to leave and I also would like her to leave but now we are financially glued together and it seems the only ways out cost a fortune.

It was quite a tight affair getting the mortgage as we both had a default each, Hers was worse mine only for £70 and settled (still arguing the default though)

We ended up on a 2 year fixed with GMAC RFC and our redemption fee before July 2008 is a little over £8000.

Both our names are on the mortgage and the title deeds.

She has agreed to a return of her share of the mortgage payments to leave in principal however there is a big block in the way with the mortgage fee.

We have a mortgage of £131,000 and when we bought the house it was valued at £140,000. It is now valued at around £155,000 due to it being a reposessed property when purchased and needing work.

I earn £24,000 but have to unfortunatly sevice about £200/pm to credit cards.

Can anyone suggest me a way forward as I can only see the following options:

1) Grind it out till july 2008
2) Remortgage with another favourable lender and swallow the redemption fee into new mortgage
3) GMAC may potentially take partner off the mortgage if I could get say my father as a guarantor who dosent have a mortgage?

MortgageMamma

Its a bit more complicated than that - there are options open to you but much more information is required.

Do you actually want to continue living in the property? If not, it could be an idea to get consent to let from GMAC, let it, and then sell it and split the proceeds equally in July 2008. Your property price may have increased by then, the mortgage decreased, you will have saved your 8K and you are giving yourself time to ensure there won't be a reconcilliation. Also, if you decide you do still want the property, you just have to give the tenants notice and move back in.

MM

simonts

Ideally I would like to remain in the house, If I was forced to let for now then so be it as I have a few familiy advantages on the letting side of things

MortgageMamma

Then that could be a really good option for you, that way you won't be paying the mortgage to her advantage. you get a bit of breathing space and you avoid the 8k early repayment charges. You just have to see if the ex will agree to it as a short term measure. If she took this through court the chances are it would take until June 2008 to get a forced sale anyway

simonts

MortgageMamma wrote: »

Then that could be a really good option for you, that way you won't be paying the mortgage to her advantage. you get a bit of breathing space and you avoid the 8k early repayment charges. You just have to see if the ex will agree to it as a short term measure. If she took this through court the chances are it would take until June 2008 to get a forced sale anyway

Its still quite understanding from both sides at the moment which is why I want to press through a solution before it gets potentially nasty.

MortgageMamma

Been there mate, I know how it feels! Its sad that its mostly the money side of things that makes it so difficult.