Living alone, taking on the mortgage alone

jt1252

Hi All,

My ex and I bought a house via the Shared equity scheme. We don't have to pay them back until 10 years time thank goodness.

We have recenlty seperated and I have taken on the mortgage payments on my own as well as bills etc. I can easily afford this.

The worry I have is come November when I will be removing his name from the mortgage is that the bank won't accept me paying it on my own. The loan amount is £131,550 repayment mortgage at a fixed rate of 3.49% for a period of 24 months (expires November).

Do you think that they will come to some sort of agreement with me if I can show I have no other debts but the mortgage? I really don't want to lose the house. My ex just wants his name removed from the mortgage and deeds and wants nothing for it.

The house was worth £163,995 minus the shared equity £24,599 and deposit £5,846. I know I'd make a loss if I was forced to sell. Any advice or at least a glimmer of hope would be much appreciated.

My parents are happy to guarantee the mortgage if needs be.

kingstreet

If your income justifies the level of borrowing, it will be allowed, if it doesn't, you won't.

Adding someone else may be an option during the transfer of equity process, but the lender will vet them like any new borrower, income, credit history, and age to retirement if it's a parent.

You're also going to need permission from the second charge holder. You can't make a change to the mortgage and property ownership without them.

kingstreet

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jt1252

kingstreet wrote: »

If your income justifies the level of borrowing, it will be allowed, if it doesn't, you won't.

Adding someone else may be an option during the transfer of equity process, but the lender will vet them like any new borrower, income, credit history, and age to retirement if it's a parent.

You're also going to need permission from the second charge holder. You can't make a change to the mortgage and property ownership without them.

Thank you for replying. What is a second charge holder? Is that the house builder who I have the shared equity with?

What a mess, I can see me losing this house as I'm only on £22k a year. What if I remortgage to the amount they will let me borrow and pay whatever difference? My parents have said they are happy to pay the difference if it is approx 10-15k that the lender needs.

kingstreet

The second charge is the equity loan. This can be a builder, government (HOP) or a combination of the two. I suggest you study the paperwork from when you purchased the property.

£22k a year is a maximum mortgage of £110k for a lender offering upto 5x income. That's before any loans or other credit deductions are made. The maximum could be less after such costs have been deducted.

You need to speak to your lender about this. Your former partner should not expect you to be able to work miracles. Paying the mortgage he/she is still jointly and severally responsible for on that income is an achievement. Unfortunately, lenders aren't allowed to base their decision on what you can do when forced, but on what's reasonably affordable.

averageguy11

I'm going to be in the same situation...the mortgage is 'only' 37k..i am self employed and earnings are 22k..but my credit history is poor (past misdemeanours) although i am debt free (apart from mortgage)...would i be helped?

Apologies to the OP for asking on there thread

michelle2008

Sorry cant offer any further advice than what kingstreet has said. It looks like a big ask given the mortgage level and salary.

Surely even if you could stretch to this would it not compromise your newly single and carefree lifestyle? At this debt to income ratio an interest rate increase would really cause you pain.

I know it's tough but have you seriously considered a fresh start in a lower cost house?

kingstreet

averageguy11 wrote: »

I'm going to be in the same situation...the mortgage is 'only' 37k..i am self employed and earnings are 22k..but my credit history is poor (past misdemeanours) although i am debt free (apart from mortgage)...would i be helped?

Apologies to the OP for asking on there thread

Too many maybes to list...

Depends on how long you've been self-employed, what the credit problems you allude to are, which lender it is...

TBH the only way you are going to find out is by talking to the lender and second charge holder.

averageguy11

kingstreet wrote: »

Too many maybes to list...

Depends on how long you've been self-employed, what the credit problems you allude to are, which lender it is...

TBH the only way you are going to find out is by talking to the lender and second charge holder.

Thanks sorry i was a bit vague