Stuck in Mortgage with the ex partner

elseychelsea

Hi,

I have mortgage for 83k with the ex partner, I now live in the house with someone else and were just paying interest only at the moment, the ex has moved on and got married and wants her name off the mortgage.
We agreed an amount to pay her off but the problem is I am in really bad debt and have defaulted on accounts that are with the same bank as the mortgage company(natwest) therefore they wont allow me to re-negotiate the mortgage to get my new partner onto the mortgage and obviously I can't do it on my own. I dont want to sell as I doubt I will ever get another mortgage again and I think the house would struggle to sell at the moment anyway.

Anyone got any advice or solutions please?

19lottie82

If your credit history is bad, then it is unlikely that you will get a mortgage ANYWHERE.

As your partner is insisting that she wan't her name off the mortgage then the only options I can see are.....

1) Sell it to your current partner at the market rate (this suggestion is based on the assumption that they can afford it and have a good credit history).

2) Sell it on the open market and split and profit OR loss, with your ex. You say " I think the house would struggle to sell at the moment anyway", but this is never true. If you reduce the price enough, you will sell it. It may not be what you would like to get for it, but it may be your only option at the moment.

Thrugelmir

Is there are equity in the property ?

elseychelsea

Reckon it would be worth 95-100k so a little yeah.

I really don't want to sell as I have children now and they are settled here now.

The ex isn't really demanding it, it's been mentioned a few times but I understand this cant go on forever, she doesn't want it and can't afford it either.

getmore4less

I think you need to explain it won't happen soon(6 years ish).

Then focus on fixing the credit

how much debt how bad are the defaults.

elseychelsea

I am on a Debt Management plan but its gonna take about 9 years to finish, got a bank loan of 20k & an account of 2k which defaulted.

getmore4less

Last time I was involved in Debt issues DMP over 6 years were not recomended there are nearly allways better solutions.

THe OH is not getting off this moortgage for a long time unless someone else take it on or you sell

elseychelsea

What is a better solution than a Dmp then? Bankruptcy? It says estimated debt free date 2021 & I can't afford to pay anymore at moment.

Selling the property doesn't solve my debt problem as it will cost me more to rent somewhere.

getmore4less

bankrupsy or IVA may be a better solution worth looking at.

you are using one of the free DMP services and not a fee paying one..

elseychelsea

Would I not lose the house going down that route also affecting the ex aswell??

I am using CCCS,what is the difference in paying one?

getmore4less

elseychelsea wrote: »

Would I not lose the house going down that route also affecting the ex aswell??

You can usualy keep the house but there will be an impact either someone buys out your equity or maybe a future charge.

These are the things you need to investigate as well as the credit recovery times for each option.