Help! NRAM - negative equity - sticky situation

Slipperyslope13

Hi - I really need some help with my options:

I have a 'together mortgage' jointly with my ex partner. The house is currently empty, in negative equity and in need of substantial remedial works. (Damp / roof repairs - repairs likley to cost £10k) Up until now my ex and I have been unable reach agreement on how to move forward as neither of us could afford the house solely and we've been unable to rent it out due to the state of repair it's in.

However, I have just had a promotion and can afford the mortgage repayments, following discussions with my ex we have now reached agreement to remove him from the mortgage in exchange for a contribution towards the costs of the remedial works that are urgently required so that I can move into the property. (we are both happy with this arrangement)

The difficulty is I am on a DMP and although I have this my income is more than adequate to pay the mortgage - but I am concerned that NRAM will decline my app to remove my ex from the mortgage. My Mum offered to act as guarantor in this event - but NRAM have sent a letter saying due to the unsecured element of the loan they won't accept a guarantor.

What other options do I have if NRAM decline my application to remove my ex?!.....This has been going on for 4 years....

Thrugelmir

No chance of obtaining a mortgage in your own right. The negative equity position would be enough. The DMP merely compounds the problem and will leave you with a problem in the future.

Suggest you come to an agreement (legally drafted) that looks forward into the future, i.e. that one day they'll be positive equity in the property.

Alternatively. Become bankrupt, hand the keys back to the house. Then rebuild afresh.

Slipperyslope13

Thanks - I'd wondered about the option of legally drafting something but wasn't sure if the was possible. If something were to be drafted by solicitors - can we have confidence in it or will the fact we have a joint mortgage always take precedence?

Thrugelmir

Mortgage will take precedence obviously in terms of the debt. The agreement principally should protect your interests on the basis that you undertake to pay the mortgage and maintain the property in good order.

Is the mortgage interest only?

Slipperyslope13

No - NRAM won't let us have interest only! It's really frustrating as NRAM have been incredibly unhelpful.

I would be happy to get a legal agreement drafted but not sure my ex will without reassurance I won't come after him for payments!

Slipperyslope13

Also - is it possible to take my ex off the deeds if he is still on the mortgage?

Thrugelmir

Slipperyslope13 wrote: »

No - NRAM won't let us have interest only! It's really frustrating as NRAM have been incredibly unhelpful.

I would be happy to get a legal agreement drafted but not sure my ex will without reassurance I won't come after him for payments!

Fully understandable why interest only isn't being allowed. NRAM have no responsibilty for your personal finances. So best to accept this and move on. At least repayment means the position will improve.

No, your ex will remain on deeds. Thats the legal advice he would receive as well. He needs to protect his interests as well. The agreement will be a two way affair.

Until you are in a position to mortgage the property in your own right (or with a new partner). Difficult to see how position will change.

Slipperyslope13

Thanks - I hoped to take up the offer of a guaranator but that isn't being accepted either. Best just deal with it!! I'll look into drafting some sort of agreement with my ex - thank you

Thrugelmir

Slipperyslope13 wrote: »

Thanks - I hoped to take up the offer of a guaranator but that isn't being accepted either. Best just deal with it!! I'll look into drafting some sort of agreement with my ex - thank you

Its in both your interests to agree to a workable solution.

Good luck.