Divorcing, splitting mortgage, secured loan and fees.

KatytheCAr

Hi everyone,

I have so much to juggle!

I've been divorced nearly two years and my exH has finally stopped dragging his feet and has agreed a financial settlement with me.

There's around £40k equity in the house, which I live in, he has a secured loan of around £16k, which I stupidly co-signed for in happier times.

After an eon he has finally agreed to take a 10k payout if I take on the secured loan.

I'm not sure whether to remortgage, taking out equity or what.
I have really good credit, so I could refinance the secured loan for a lower rate. Or remortgage so the 10k payout and secured loan are paid for in a fell swoop. Shopping around I can see I can get a better deal than I have already

Time is also of the essence, not only am I keen to seal this before he goes silent again, but I am also going to become a student in the autumn. My income is fine (almost the same) throughout but I am scared lenders will hear the word 'student' and refuse to finance me.

Does remortgaging take a long time? I'm tempted to get a quicker loan in the interim to make this settlement happen in the meantime.

dimbo61

You hope there is £40K of equity in the property and you want to borrow another £26K to clear a secured loan and pay off you EX his £10K
Has he been paying his half of the mortgage for the last two years ?
Sell up and see what you have left.
You are looking for a 95% mortgage on a single income while planning on becoming a student !

Thrugelmir

By the sounds of it you are splitting the remaining equity in the property 50/50. Your problem is remortgaging to raise the funds. So the problem may not just be that you are going to be a student , but that your income isn't going to be sufficient.