Mortgage question

happy_witch

Good afternoon, I wonder if I might ask a question please? My husband and I are separating and our house is on the market. We have split the mortgage/insurances 50/50 until the house sells. The house is on the market for £190,000 - it has only been on for 4 weeks with one viewing. We are looking at dropping the price by £10k in 4 weeks time - we want a quick(er) sale and move on with our lives. The house is valued at £205,000. We have a mortgage on it for £137,000. We bought the house 6 years ago for £195,000.

This is my question - our mortgage is with TMB, we pay more than £1000 a month to them, we are on a repayment mortgage. We asked them short term if we could go to an interest only mortgage and they have refused, as there's not enough equity in the house. We explained we would only do it for 6 months where hopefully we would have a buyer but they still refused. We have a good credit history with them, never missed a payment in 6 years. We are both struggling to afford to pay the mortgage as husband has his own place/own bills etc and I have an ok salary but can hardly make ends meet. TMB have been really unhelpful, we explained we are struggling but they don't honestly want to know. Is there anything we can do or do we have to carry on until we have a buyer? I can't get a tenant to live with me as people are put off when they see the for sale sign.

My husband said he felt like defaulting and letting them repossess it but I hope he was not serious!

I thought mortgage companies were more approachable?

Thank you for reading.

ch3101

To be blunt you both took on a mortgage together and when the mortgage company did their assessment, they took your circumstances as they were and in their eyes your circumstances should stay the same.

Obviously things do change like this but it is for you guys to be prepared and deal with it. Unless there was something in the T&Cs that said they would help out with things like this.

Is there no possibility that you can still live together and hence your husband doesn't have that extra expenditure, or would that be impossible?

There's a girl I work with living with her ex fiance despite the fact she solely owns the flat as neither one can afford to live alone - just something they have to put up with just now.

I wouldn't suggest defaulting and letting them repossess - which would be a reasonably easy way to get the property sold - but it would ruin your credit worthiness completely minimal chance of getting a new mortgage.

opinions4u

If you let them repossess you can wave goodbye to the equity.

Pay what's due. Keep your credit file tidy. It will help you both to get on with your lives.