New mortgage if have had arrears

smoyes

My situation is that my ex has left me with a mortgage payment which is about 4 times what I can afford. Originally he was paying me something towards the payments, but long story short he stopped and I am now in arrears, I have kept the mortgage company informed and it has all been with their agreement up till this month. I have had the house on the market for about 8 years and up till this year I had a grand total of 6 people to look at the house, but now there is a chance to sell it, but I was wondering it there is any chance at all of a company that would consider me for a mortgage of any sort, also if that is not the case, how likely is it that I will be able to rent privately?

Foxy-Stoat_3

Depends on the LTV% and total amount your looking to borrow and your salary.

If you are strugglubg to pay 4 times what you can afford at the moment then assuming your downsizing a fair bit...also you probably have no saved deposit.

How much equity is in the current property?

8 years onbthe open market is a very long time....over priced?

Providing you can afford the rent and have 2 or 3 months rent saved up then you should be able to rent ok...you may need additional deposit if you have defaults.

smoyes

Thanks for that, it wasn't the price, as all estate agents agreed it was priced corretly, the issue was more that not many properties were moving in our area that were like mine, although that is now changing slowly. If I sell at the price I have it on at the moment I would have at least a 10% deposit but I think due to my situation the mortgage lenders would be looking more for at least 20% and looking at what is available in the area I am not sure there is any that are that low in price now, to make my 10% deposit become 20%, but I would hopefully be able to at least rent based on what you have said, I just need someone to make me a reasonable offer now.

Foxy-Stoat_3

Is your ex still on the mortgage and deeds?

smoyes

Yes he is, and he will be more than happy to be rid of the property, but he has moved to Malta for some reason

Foxy-Stoat_3

smoyes wrote: »

Yes he is, and he will be more than happy to be rid of the property, but he has moved to Malta for some reason

Probably to shoot birds !! LOL

If he will not be expecting any cash from the sale of the property then I would try and save upto 15% plus fees and legals before applying for a mortgage. I would assume he would need to sign something for the sale to complete, this may show the balance of cash from the sale.

Use a whole of market broker to find you the best deal.

smoyes

He didn't want anything from the sale of the house, but that was when it first went on the market, knowing him, I wouldn't put it past him to demand some cash out of it now, as, fool that I am, I didn't get it in writing, however, not sure if, given I can prove he hasn't contributed to paying any of the mortgage for a few years, if I could argue that he isn't entitled to anything, but I'll cross that bridge when I come to it, I think I will get as much as I possible can for the house, in order to get rid, then go into rented and save up till I have a 15% deposit if at all possible. Thanks for your advice.

Foxy-Stoat_3

You don't need to prove anything, his is joint owner as you are. You are both jointly entitled to equity and or liabilities of this property.

If you tried to remove his name from the mortgage when you split and the lender was unable or unwilling to transfer the mortgage to you only then you would of had to sell.

The only thing you can say to him is to split the equity more in your favor if he demands cash from the sale.

Good luck.