Changing name on mortgage with negative equity

muchos_skintos

Foxy-Stoat wrote: »

A potential of £20,000 shortfall on the mortgage plus fees and £10,000 credit card debt would be enough for Bankrupt or IVA.

Whats the likelihood of over paying the mortgage or property prices in your area rising to get you into positive equity by 5% in the next 5 years?

Only if we sell would we/I have the shortfall.

I could over pay but not while she's on the mortgage!

Thrugelmir

muchos_skintos wrote: »

I could over pay but not while she's on the mortgage!

Hence my comment earlier that she relinquishes any future claim against the property. As reducing the debt is of benefit to both of you.

There's no winners in a situation like this.

Foxy-Stoat_3

Am afraid the short answer is in post #2 then.

Don't forget the shortfall is as much her liability as it is yours, maybe this will give her the motivation to square the debt with you.

If she owes you £11,500 on the cards and half of the shortfall on the mortgage then this totals £21,500. If she can arrange the finance then this will give you SOME equity, maybe enough for you transfer solely into your name but keep the card card debt at the current level.

Captain__

Hi Muchos,

I'm sorry to hear about your separation. It seems that the hardestlast act as a couple is to actually split. I would say at this point itis always best at this point to be reasonable with each other as you now needto help each other out of the situation.

Your debt on your cards, if in your name is on the cards, the debt willalways be legally yours, in turn you will always be the chased person. Anything you do legally to commit the debt onto her will be an agreementbetween the two of you, and of no relevance to the finance companies who willcontinue to see you liable for the debt. The simplest answer for that isto ask her to refinance the debt in her name. Remember to help her out,make sure she gets a good APR loan with affordability for the future, the lastthing you need several months after a split is her banging on the door askingfor money, be it she entitled to it or not.

With regards to the mortgage, there are a few companies out there that willgive 100%+ mortgages, eg. Halifax, and there rates seem more competitive thanNorthern Rocks. I would advise that on the principal that your ex hasrefinanced the debts to her, you see a mortgage advisor and assess if you didnot have a commitment to those payments.

Bankruptcy is an option, but it will not take away the mortgage payments andit is not the clean start everyone suggests. Finance can be an issue forseveral years after, and the trustee can still take your property at a laterdate after the bankruptcy is served if in positive value.

Again, I am sad to hear of your separation but hope you can bring this to anamicable conclusion.

Funny_old_game

Sorry, I don't know happened to my response, but don't give this person hope by saying there is 100% remortgages around, there isn't.

amnblog

Was your Northern Rock mortgage a 100% or 100%+ mortgage initially?

If so you may have options you have not considered.

kingstreet

Captain__ wrote: »

With regards to the mortgage, there are a few companies out there that willgive 100%+ mortgages, eg. Halifax

The only time Halifax will lend above 100% is for one of its existing borrowers moving home and they have to put down a deposit and the mortgage has to be a lower loan to value than currently applies;-

http://www.theguardian.com/money/2011/jan/27/negative-equity-mortgage-lloyds

NRAM may allow the mortgage to be ported, but only upto 95% if that was the original LTV and the borrowing cannot be increased.

Captain__

Funny_old_game wrote: »

Sorry, I don't know happened to my response, but don't give this person hope by saying there is 100% remortgages around, there isn't.

Your quite right, these tend to be for existing borrowers only, but still talking to a mortgage broker could be worth it as they may have insight from looking at the market continually.. Saying that, all these mortgages at high ltv appear to be extortionate apr commensurate on risk.