Divorce and Mortgage

mymiisfitterthanme

Hi

I'm looking for some advice please.

Unfortunately my marriage has broken down and we will end up getting divorced. Both my Wife and I are still at home and are looking at one of us buying the other out.

Unfortunately I'm a bit of a numpty when it comes to mortgages so would appreciate any advice.

We're currently in a 10 year fixed rate which is due to expire in 2015. We have £88000 left to pay on the mortgage and a fair price for one of us to buy the other out has valued the house at £180000.

I know that I need to see our Mortgage provider (Nationwide) and explain the circumstances but I'm a bit stuck as to what I need to do/ask for and I don't want to appear an idiot.

Any pointers would be most welcome. Thanks in advance.

Cara79

mymiisfitterthanme wrote: »

Hi

I'm looking for some advice please.

Unfortunately my marriage has broken down and we will end up getting divorced. Both my Wife and I are still at home and are looking at one of us buying the other out.

Unfortunately I'm a bit of a numpty when it comes to mortgages so would appreciate any advice.

We're currently in a 10 year fixed rate which is due to expire in 2015. We have £88000 left to pay on the mortgage and a fair price for one of us to buy the other out has valued the house at £180000.

I know that I need to see our Mortgage provider (Nationwide) and explain the circumstances but I'm a bit stuck as to what I need to do/ask for and I don't want to appear an idiot.

Any pointers would be most welcome. Thanks in advance.

Ok, in terms of equity, you're looking at £92k roughly, minus any fees. So I'm guessing you or her are looking at buying the other person out at around £40k +.

So, the person remaining in the house and taking on the mortgage will need to be able to support a mortgage of £88k plus £40k (unless you have this in cash savings). It is then up to the lender to credit check against that person to see if they are happy to remove one person from the mortgage.

As you are tied in until 2015, the other £40k will need to be an additional mortgage by the same lender, most likely at a different rate.

You will need to speak to the broker to discuss the options and to see if it is viable.

Have you discussed at what price you or her would buy the other one out at? You will then know how much of a mortgage you/she will require and the broker can look into whether this is viable.

Sorry to hear about your divorce.

mymiisfitterthanme

Thank you Cara, that was exactly what I was after, it is very much appreciated.

Excited13

Good luck as I know it can be a nightmare but Nationwide are very helpful so it's work a call to casually discuss if you fit their lending criteria on your own.

Obviously everyone's circumstances are different but it may be worth getting everything legally agreed before you start paying fees to get the mortgage sorted. My ex went back on what he said and things can get very messy and nasty.