Uninsured, interest only mortgage

Formyfriend

I really need some help. And how!

6 years ago my now ex husband and I had a joint, 25 year, interest only mortgage because we couldn't afford a repayment one and, we didn't have insurance. I don't know how we got a mortgage with out but we did.

I'm really concerned about how I'll pay off the mortgage at the end of the term and don't know how or where to even start sorting this out.

I'm unable to sell the house because we bought at the height of the market and it's now in negative equity by around 30K which for me, is an absolute fortune and I dread that it will ever go up beyond what we paid for it.

The house is still in joint names because there's no way I can afford the mortgage on my own so I can't change that. I afford the repayments by having a lodger, not ideal but needs must.

So I really do need help. . . . .anyone?

lippy1923

Try going over to the debt free board and post an SOA so people can help try and reduce your outgoings. Its a real eye-opener when other people point out possible overspends.

I would personally speak to the lender, let them know the situation and see what they advise.

ACG

I think uninsured is the wrong term but i understand what your saying.

You really need to either start putting money into a saving account (ISA etc), or alternatively you can start making overpayments on your mortgage - keeping it on interest only which will bring your mortgage down over time just not to the degree you need. The other option is to transfer your mortgage to a repayment one but that will increase the repayments and you will have to keep up with the higher repayments.

might be worth having a chat with a mortgage advisor to see what can be done to get your mortgage down, whilst making it affordable.

Formyfriend

I'll talk to my ex and see if he'll do that for me. Though he's wanting to buy his own property so pushing for me to take out a mortgage in my own name, some chance. I don't want to knock anyone least of all my parents who stumped up 40k for the deposit.

I know this is all my own fault not helped in the least by my relatively young age at the time, naivety and stubbornness in not listening to my parents who didn't want me to buy in the area I did. We reap what we sow I know but, for all that I do need some constructive help so thank you for yours.

CLAPTON

maybe tell us some of the facts

how much is the mortgage
how much do you earn
how much is the house worth
any children

Formyfriend

Mortgage is £190,000
My earnings £25,000
Currently £200,000 on a good day!
No children

OMG revealing those figures is embarrassing and disheartening, it looks even more desperate if that's actually possible.

Thrugelmir

Formyfriend wrote: »

OMG revealing those figures is embarrassing and disheartening, it looks even more desperate if that's actually possible.

Lightbulb moments are the way forward. Little point in trying to hide the seriousness of the situation.

So the negative equity may be less than £30k? Does your ex have access to funds of his own?

Iwant2boptimistic

Its a journey and you are learning and taking responsibility which I think is admirable. There are many on these boards who have done the same so don't be so hard on yourself. You do have a lot more years to sort it out whereas someone on here the other day only has 2 years unfortunately before they retire and my heart goes out to them and to you as i can see you are upset but it is within your reach to sort it out long term. So you are where you are. I would be very cautious about paying any extra onto your mortgage to reduce it as your ex may then benefit at your expense. It never ceases to amaze me how greedy some people are in that they want a share of any profit but what they don't want to accept is that a joint mortgage also means a share of any losses. He may be pushing you to get a mortgage in your own name but I doubt he's willing to share half the loss to get his name off the mortgage. I realise you won't want to sell as you will feel you are losing the deposit etc . These are hard times at the moment as properties aren't making as much profit as we are used to.
For similar reasons I wouldn't advise you to go onto a repayment mortgage as the repayments will be higher and you are then contractually committed to keep those payments. Keep it on interest only and save where you can. Does your ex have any cash that he can help with the shortfall if he's desperate to get his name off?
You should visit the debt boards as I found them very helpful when trying to sort my brother out who is in a very similar position to you. He increased his income by taking on some freelance work, he got a lodger like you, he rented out his garage to a classic car fanatic, and started selling stuff. So those boards have lots of ideas on extra income but I have to say it's v hard work but he was near bankrupt so had to knuckle down. He also reduced his outgoings and started saving a regular amount which will help him reduce his mortgage once he's able to get it in his own name. He's struggling with that too as he doesn't earn enough without his wife's salary to have the sole mortgage. You've got skills as you've got a job - could they earn you extra money ? - my local college have visiting lecturers at good rates of pay for anything from cooking to IT etc. the local theatre is always looking for casual staff behind the bar and at front of house, the local tourist attraction where I live is always looking for regular annual casual employees for when it puts on concerts and events. The local youth club have always got contracts for 3 hrs a week such as 6-9 pm on weeknights & evenings. Sorry for the long post. Good luck with it all. Xx

ValHaller

Formyfriend wrote: »

I'll talk to my ex and see if he'll do that for me. Though he's wanting to buy his own property so pushing for me to take out a mortgage in my own name, some chance. I don't want to knock anyone least of all my parents who stumped up 40k for the deposit.

I know this is all my own fault not helped in the least by my relatively young age at the time, naivety and stubbornness in not listening to my parents who didn't want me to buy in the area I did. We reap what we sow I know but, for all that I do need some constructive help so thank you for yours.

What is done is done. And your ex is living with the consequences too. There is no way that your ex will be released from this mortgage until the property is sold. I doubt that a court order would help him either, unless you could make a sale in positive equity - because the lender could always refuse to allow the sale as the court order would not be against them.

I suggest that you think about what you want out of this situation - what it would take for you to sell and leave. Even if the financial settlement of the divorce is done and dusted, I think your ex needs to be prepared to put his hands in his pockets to whatever extent is necessary - because this is about getting him off the mortgage rather than resolving the former marriage.

Perhaps between the 2 of you you need to cover the negative equity and sell?

Iwant2boptimistic

I thought you had in excess of 3Ok negative equity but now you've posted the figures its more like £10k so i think you were calculating by taking the £40k your parents gave you for the deposit less the £10k possible equity today - so I would agree with VanH - cover the negative equity and sell. Then you can start again with the knowledge you've gained.

Formyfriend

I guess because I owe my parents money too I always lump them together and think in terms of that being the negative equity. And as for financial settlement, there wasn't but there weren't any other joint debts. Simply he moved out and on.

Thanks though for the advice, all food for thought, cheers.