Interest only Vs Repayment mortagage during divorce pls help.

poundednote

Hi i'm hoping some good person here will be able to help us. My partner with whom i have a joint mortgage has left me and is currently on long term sick leave from her work. I am now the main income in the household with my partner now only making a small contribution to the houshold and mortgage.
we are currently on a variable rate deal as our previous fixed rate deal has expired. I intend to get divorced over the next two years when our property will be part of any settlement agreement. in the mean time i'm struggling to meet the mortgage payments which are currently £1135pm on a standard variable rate.
I would like help in deciding:
1) with my partners agreement would it be better to try to move our mortgage to interest only to reduce the monthly repayments or now that our fixed term deal has ended try to get a repayment deal that will last at least two years( there is 20 years and 220k left to pay on the mortgage with 100k equity)
2) My partner who is no longer living at the property is on long term sick leave from work but still recieving pay would this prevent us from obtaining a new mortgage deal or moving our current mortgage to interest only.

Many thanks for all of your advice in advance...

Thrugelmir

Why not sell the property now? Rather than waiting.

themull1

I didnt think you could get interest only mortgages now?

poundednote

Thanks for the reply but there are children involved and this will be the family home hopefully after the divorce settlement. If an agreement can't be found then it will have to be sold. In the mean time we need somewhere to live its just getting tricky to meet the mortgage payments at tha moment.

poundednote

hi thanks for the reply.. I had been advised that the Nationwide were offering provided there was plenty of equity in the property..

Thrugelmir

poundednote wrote: »

Thanks for the reply but there are children involved and this will be the family home hopefully after the divorce settlement.

In principle this is is the best outcome . However if the mortgage is unaffordable now what's going to change?

Suggest you make an appointment in branch. Outline your situation and see what the lender will consider. They well grant you a temporary interest only, or allow reduced repayments for a period of time. Giving you a window to resolve matters.

_Andy_

http://www.theguardian.com/money/2012/oct/04/nationwide-abolishes-interest-only-mortgage-deals

poundednote

_Andy_ Thanks as with all thgings in life its a negotiation!

Thrugelmir ... what will change if i manage to find a better mortgage is the cost of the monthly repayments. What i'm not sure of is whether the fact that my partner is on sick leave at the moment and whether this would effect how any bank would view remotgaging.

Thrugelmir

poundednote wrote: »

Thrugelmir ... what will change if i manage to find a better mortgage is the cost of the monthly repayments. What i'm not sure of is whether the fact that my partner is on sick leave at the moment and whether this would effect how any bank would view remotgaging.

My thoughts were looking further ahead towards the post divorce situation. As while a new mortgage may reduce your outgoings slightly now. This is only a temporary measure. Other financial pressures could easily tip the balance again.

amnblog

poundednote wrote: »

hi thanks for the reply.. I had been advised that the Nationwide were offering provided there was plenty of equity in the property..

you werre misadvised

amnblog

I would be very surprised if your lender would let you switch to interest only. If they do, they may reflect the 'underpayment' on your credit file which would be bad news post divorce.

I would rahter see you get some 'divorce' advice and work in view of that than take action on the mortgage in isolation.