Negative equity, other party wants of the mortage

Tash1984

The payment were on is interest onlyat the mo

Thrugelmir

Tash1984 wrote: »

The payment were on is interest onlyat the mo

Then you need to consider how you intend repaying the mortgage off.

Tash1984

How do you mean? I understand nothing is coming of the balance at the mo and after i return back to work after baby were swapping over to repayment, but thats not the issue, were fine paying as it as at the mo the issue is his friend wanting to be off the mortgage not us paying mortgage of as were happy to continue paying as it is, as said in previous posts options would be to reduce mortgage if could find money, from both party's, but we dont intend on paying mortgage of as were happy to stat there?

Tash1984

We dont want to sell thats the last thing we want to do its the friend that wants to sell to get his name of mortgage, what im trying to find out is is my oh wont sell can the friend force sale or will the fact theres no equity, mortgage is payed every month go in our favour and he wont be able force us to sell

Radiantsoul

I guess you may not want to sell but you are currently going to have to pay the £105k to acquire an asset worth £85k less whatever you have to pay the other owner in the property. It sounds like a bad long term deal to me.

I am surprised the mortgage company agreed to interest only as the property is in negative equity. Your remortgage option might work, but any new lenders will probably be disturbed by the fact you have moved to interest only and even after the £20k the equity will be minimal.

I do agree you probably want to remortgage and get the friend off the mortgage. There are mortgage advisors on here who might be able to help, you probably need to have a good idea of the house price, other assets, income and expenditure.

Tash1984

Its a very bad long term deal! Big fat mess!! Think thats northern rock for you!! Its always been on interest only, as i say itl be going onto repayment once ive had baby and back at work, where would i find the mortgage advisors on here? Cant see any quick fix to this mess which is what his friend wants!!

Radiantsoul

There are mortgage advisors on this forum. Your question is can somewhat get a mortgage for 105k less 20k=85k against a house worth 75-80k. And that is going to be no unless you have other assets/guarantors/etc.

You said above it was repayment and the fact that it is interest only does rather change the fact. I have more sympathy with your partner's friend who is on the hook for the whole of the shortfall whilst you get to live in a house and pay just the interest only element(which is most likely less than renting elsewhere). I can see why he might like to crystalise his lose and move on. At any point your partner can just hand the keys to the mortgage company and declare bankruptcy, leaving him with a shortfall he most likely cannot pay.

Tash1984

I have never said it was on repayment , i said we were switching to repayment once i was back in work, so i disagree there, and you feel sorry for the friend is a joke!!! He was the one who walked out the house and left my Partner to find the money and didnt give 2 hoots as to how the mortgage was being payed, it was my partner that stopped the house getting repossesd for not paying mortage, and were getting to live in this house whoopy do, we wouldnt choose to live in this house one bit but we have no pigging choice so dont make out were getting the better deal when were getting the !!!! deal his friend gets to go rent a nice house as were stuck here with no option to move, and believe me we would if we could, so dont make out were getting the better deal, we would of sold this house the minute his mate moved out if we had the choice, may i also add the friend left my partner with other debt me ad my oh had to pay not just the mortgage, and as for my partner going bankrupt why the hell would he do that and black list his name when hes got a good credit rating why should he do that when its his friend thats caused the mess, im sorry your last statement was utter cap sticking up for the friend, were the ones that have been left with a house were stuck on whilst were making the friends credit look good buy paying his share of mortgage and the friend gets walk away with no worries, what a absolute joke !!

Tash1984

An i never said wed remotgage for a balance 85k more than the house so get your facts right! I said we had a 105k mortgage, house is worth 80k and we would bring the mortgage down to 76k if we could so i sujjest you re read what i wrote and i mentioned what payment we were on when another user asked

Tash1984

Tash1984 wrote: »

So for example we owe 105k now, we brought the existing mortgage down to say 76k and the house was worth 80k we could go elsewhere and try to remortgage in both mine and partners name, problem
Would be finding money from both parties to bring it down to that amount but that would be a option,

If there was equity in the property we would of sold house long time ago when he first moved out to avoid all thos, and wouldnt be refusing to sell, but as theres no equity it seems silly for one to put both parties in debt, and 2, wed be homeless and wouldnt be able buy anywhere else as partner would have debt from this house, plus were paying this mortgage fine its doesnt seem fair he makes these demands which arnt even posdible todo hes just itrespobsible and should of never of gotten a mortgage in first place but whats done is done!

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