!!Urgent advice pls - divorce, redundancy and mortgages!!

Onward_2

Hi All

I'd like some help please, as I'm assuming either someone on here has been through this or helped someone else who has! I have to make a decision this weekend!

I'm in the FMH and as part of the court settlement we are selling this, my ex after paying off mortgage and other costs getting £180K from sale plus half of extra profit. I get other half of profit, which is roughly £20K ­base­d on the offer I have right now for the house which I have to accept, or not, asap.

As part of the deal I keep another property which I own (previous to the marriage) in my own name worth £250000 which is rented out. Rent gives me £700/month profit a month. I have a £30K mortgage on this other property.

I would like to buy my ex out of the FMH home (£200K) by remortgaging FMH and my other property to raise the funds as I want time to choose where I live. There is also the possibility of extending the FHM and selling on later at profit.

My issue is my job may be redundant in 4 months time although I am not officially at risk of redundancy yet. I have £50K savings to cover mortgage payments if made redundant and have a job offer (which I cant take until I'm actually told I'm redundant), but is there anyway I can remortgage, do I have to state there is a possible risk of redundancy?

My other options I see are:

- to sell the FMH, pay ex off and rent somewhere until I have a job if made redundant to get a new mortgage.

- to sell FMH, pay ex off and try to port my current FHM mortgage (1.5% interest) to a new property, which would mean removing ex's name from mortgage - would a lender let me do this in current circumstances?

- to sell my other property and pay ex off and stay in FHM

Are my options correct and can anyone with the financial knowledge tell me if any of this is viable and/or what my real options are??!

Really appreciate any help, thanks.

lonestarfan

What does FHM stand for?

SingleSue

Former marital home.... I think.

ValHaller

Missing information - value of FMH and outstanding mortgage. Need to know that to assess total debts and total assets and mortgage accordingly.

Onward_2

Hi ValHaller, FMH is worth £415k, mortgage £175k.

Another option I have is to port the mortgage to a new property, which I can do with the mortgage product I have. If I did sell now, and try to port the mortgage, will I have to declare potential redundancy or being put at risk of redundancy. Also will having to take my ex' name off the mortgage mean the lender will not port it?

Thanks again all for your advice.

ValHaller

Current property assets £665k. Mortgages £205k. Buying out ex £200k.

Borrowing to buy out your ex leaves you with £405k of mortgages of which probably £150k is supported by rent. In your position, I would be refinancing the flat on BTL to 80% or as high as you can go without the interest rate becoming exorbitant. You'll be eligible for tax relief on interest for this. That will leave you a little bit short, so top up with more borrowing on the FMH.

If the BTL rate after tax relief is higher than the residential rate with no tax relief, then borrow as much as you can on the FMH as residential and top up with more borrowing on the flat.

It does leave you rather exposed if the risk of redundancy materialises. I think it would be a good idea to work out your definite plan in that eventuality - whether you will dispose of assets and which assets you would dispose of. This may affect your choice of which assets to mortgage

Onward_2

Thanks ValHaller, the rates on the mortgage for the FHM is 1.5% and the BTL is 4% btw.

OK All, been told today that I am now at risk of redundancy...I have 30 days consultation and 3 months contractual notice.

What are my options now everyone? I have to accept the house offer due to the court settlement stipulating it. My ideal is to port my mortgage to a new property. In savings I could cover this mortgage for 2 years and still have money to live, and also that I will have a job in 4 months, but what will the lender think now I am at risk? How do I approach this to get the best result?
Thanks again