Seperating, how can I afford mtg?

EmmaHerts

mkbswimstar wrote: »

Is there anyway I can keep the house, can my parents be guarantors, even though they are retired. Have their own decent property mtg free.

On your wage you cannot afford the mortgage and bills can you?

epz_2

mkbswimstar wrote: »

Is there anyway I can keep the house, can my parents be guarantors, even though they are retired. Have their own decent property mtg free.

The problem is your income isn't enough to support the mortgage, even if your parents were willing to risk losing their own home you still will not be earning enough to service the interest on the debt.

Remember you need to pay council tax, energy bills, transport costs, insurance, food and all the other things that hit those on a low wage a lot harder. At the same time interest rates are as low as they will ever get and it would cost you over half your wages just on interest.


Please also be bear in mind £450 interest to the bank is just the same as £450 rent its just you are liable for repairs like the boiler etc.

mkbswimstar

Thank you all. I don't love our house and can live without it. Maybe its best to just sell and split. How do I protect my equity before it all turns nasty as he may try to claim more money, even though hes always verbally agreed to me owning most of it?
I figure I will be able to rent somewhere for 6-7 years based on my equity and current earnings.

mkbswimstar

Or could I invest the equity once split into a shared ownership home? or is this not advisable?

BitterAndTwisted

mkbswimstar wrote: »

How do I protect my equity before it all turns nasty as he may try to claim more money, even though he's always verbally agreed to me owning most of it?

You can't formally protect that twenty grand you contributed with having had that Deed of Trust drawn up when you purchased.

All you've got left are his equal responsibility to contribute towards your children being adequately housed by paying a decent amount of child-support and his good-will.

Edit: I would advise you to stay right away from shared ownership/equity

mkbswimstar

I contributed £100k! If it was 20 i wouldnt mind. My parents originally lent me my first deposit on my first house and it built from there.

embob74

I would have thought that you would be entitled to tax credits on your income of £12k a year.
Any maintenance received is not taken into account for tax credit calculations so the more you can get the better off you will be!
Obviously tax credits are likely to change in the future but I believe some mortgage companies allow them to be used for mortgage offers (Halifax has been mentioned before).

BitterAndTwisted

£100k of equity put in, no Deed of Trust and two kids later ? :eek:

Mind you, who's been paying the mortgage since you bought it? Probs him as you aren't currently earning enough to be paying even half of it. I daresay that will be your ex's starting position

sharp910sh

You will have to rent. You cannot afford to pay the mortgage at all!

mkbswimstar

Is there anything I can do in retrospect, can he sign something now that gives me my part if we split? Would the mtg co have to know?