Complicated? or am I overthinking it?

R1gM

Sorry guys this might be a bit long but I will try and explain as much as I can as short as I can.

Basically last year I bought a house with my gf of five years. It was both our first house and we got a fixed rate 5.1% five year mortgage deal from HSBC.

Four months after buying she left me for a guy she met at a conference (i felt pretty stupid) and after a few months living together while I saved cash from working a second job she moved out.

I took on all the debts and the house payments and for the last 10 months I have worked over 55 hours a week to pay for everything.

About four months ago I took in a lodger and I manage to save as well as pay for my loans etc each month.

My dilemma if you can call it that is this.

I still have the joint mortgage with my ex. She left knowing that for us to sell would cost us about 10k personally in fees etc. She I think felt quite guilty and said she wished for no money simply only to be released from the mortgage within a year or so.

I have been the HSBC last year and the girl I spoke with told me I could not simply be assessed for the mortgage and do a transfer of equity like other banks offer and would have to take a brand new product to pay off the old one. At the time she was ready to do a mortgage in principle and seemed eager to get me onto a new product. I took on board what she said but I still intend to ensure that this is indeed the policy as she didn't seem sure at the time.

With this in mind I have some things to think about. I don't wish to carry on working crazy hours forever to pay for a house as it just isn't worth it. However rent is roughly the same outgoing (well about 150-200 cheaper) and it seems a bit nuts to sell now and go rent if I can put more equity in the house.

I have consulted my sister about coming in with me on a remortgage for a brand new product simply for the credit assessment. The joint incomes will pass no problem where as mine on my own plus loan payments would be a little borderline or not as easy as I would like. I could refinance but loans not being what they were 2 years ago and with only 16 months left on repayments I would like to keep my current deal and not find a new longer personal loan for my university debt. If I have to I will.

Anyways I am contemplating going to HSBC checking that indeed I do require a new product and getting quotes from them as well as other providers for the new deal. If I stick with HSBC they will drop the fee on the early repayment but this effectively means they are simply sticking me on a higher interest rate and I find that a little hard to swallow and feel if I have to get a new product I might prefer a cheaper option elsewhere even if it does cost me the early repayment fees. There is no doubt I will have to pay more interest its just about who with in this case and how much.

I am a little stuck because for me its not about what to do but when. I have some savings now but I am trying to also pay off debts and people like my dad who needs money he lent me in university. I am holding out on as much of it as possible to get the timing right. I am aware if I get a new product I will probably have a hefty solicitor bill the same or more than when I first bought, especially if I buy with my sister as the new named joint tennent (she would get a small equity share for the risk of being named on the mortage, she has no debts or mortgage herself and does not intend to buy for a good few years). I will also probably then have stamp duty as the house fell below threshold before but now is worth above. Although I am not sure if you pay it on remortgages the fact it is now with my sister included I am not sure if I will be liable.

I basically feel a little stuck. ultimately I may have to sell and simply start again a new life somewhere else with a new job and all that a proper fresh start. Of course I don't hate my job but it feels right now I live to pay for a house. I would be able to take on a new mortgage like I currently do but the fees etc will need me to save for longer. The longer this goes on the longer my ex stays on my deeds and mortgage and the more time she has to get in financial trouble and possibly seek the 50% equity that legally she is entitled. I don't think she will and she is adament she won't but I know I am still open to that risk.

I am just interested in what some others might suggest as timing or possible advice. I appreciate anyone who spares the time to read this and reply. Sorry its so long I just wanted to give as much background as I could.

Thanks

epz_2

a 5 year fix at 5.1% is a pretty hefty deal in the current climate of 6%+, if you plan on buying elsewhere then i would try to hang on to it.

first i would make sure that you ex has signed something showing that you working all the hours god sends doesnt get her half the house, she has already proved she aint trust worthy.

as to the rest i would ask a lawyer

clutton_2

I Would go to an independent mortgage broker who deals with the whole market. HSBC only offers it own products. s/he will be able to help with an alternative product - sometimes it is not necessarily disadvantageous to pay off a mortgage early (even with ERCs) if the property has increased in value, and the remortgage product has a better interest rate