Should I try and get interest only mortgage whilst divorce still going on.

banthecar

My wife and I have been split for 2 years next month. I moved out of the marital home 2 months after we split and have since been renting my own place. This has been a huge struggle financially as we also have debt on credit cards from a house rennovation which unfortunately were mostly in my name.
We have 2 kids and 1 of the children each at the minute so maintainance shouldnt be an issue.
The mortgage for the marital home is £800 a month plus rates and life assurance bring that to just over £1000. So theoreticaly my contribution should be £500. But i am working 2 jobs and I contribute £800 a month to the joint account to ensure the mortgage gets paid.
My monthly pay from my main job is approx £1500 and my second job which fluctuates seasonaly can be averaged out over the year at £600 a month.
So if you add the £800 I pay to the joint account to the £500 rent and the £400 credit card / loan repayments you can see what way this is going.
My ex works part time and brings home apprx £1400 a month but has been drawing money out of the joint account on occassion.
Our house is on the market for £220000, and she rejected an offer of £204000 last year.
So basically my question is would it be a good idea to try and get on to an interest only mortgage whilst this is all going on. It would free up some money to start tackling the debts.
Thye other alternative is to reduce what im paying to the joint account but my ex has alrady given my son the impression that I don't pay her enough and i Dont want to put the relationship with my son at risk.

Brighton_belle

If you already have a mortgage I doubt a mortgage lender will give you another mortgage, interest only or otherwise I'm afraid: you'd be far to big a risk for their money.

RAS

Why do you still have any sort of joint account when you are not living together?

Get your self a new one in your name only immediately. Then organise your next pay cheque into the new account. Talk to your ex and immediately give the bank a letter insisting that all future debits require both signatures.

You may also want to remind her that all debts of the marriage are shared as well as all assets.

Your wife should be able to claim Mortgage Interest Support (assuming you wre not paying the mortgage) as well as WTC/CTC etc. Why has she not done so?

banthecar

What about convincing current lender to let me go interest only. If we did re-mortgage it would still be in both our names till the house sells.

RAS

Have you told them about the divorce? Asked for a payment holiday?

SeanG79

Brighton_belle wrote: »

If you already have a mortgage I doubt a mortgage lender will give you another mortgage, interest only or otherwise I'm afraid: you'd be far to big a risk for their money.

I think the OP is looking to convert the existing mortgage to an interest only mortgage whilst he waits for the house to sell as opposed to obtaining a second mortgage.

OP - I assume from your post that this is a joint mortgage and if so, you would need your wife to agree to the change firstly before trying to convince a lender to approve it. IMO Interest only mortgages are rare nowadays and from the info in your post, you may struggle to pass the new affordability criteria.

Hopefully someone more knowledgeable when it comes to mortgages will come along soon and offer their insight.

banthecar

I also have my own account. a standing order goes out of it each month to the joint account which is mainly meant for the mortgage and kids school fees etc. But she has been dipping in to it, I have a meeting with my solicitor and a barrister tomorrow because she has been burying her head in the sand about the whole financial side of things.
I wasnt aware of mortgage interest support.

RAS

www.turn2us.org.uk

It is much better for you to pay her maintenance which does not affect her beneift claims and her to claim the costs of housing and child care etc than for you to pay the costs of the child care/fees etc directly.

Brighton_belle

SeanG79 wrote: »

I think the OP is looking to convert the existing mortgage to an interest only mortgage whilst he waits for the house to sell as opposed to obtaining a second mortgage.

Sorry OP - I misread that.

FBaby

Can you get help with mortgage payment when you work part-time? I thought you had to claim IS or ESA to be elligible.

pinkshoes

banthecar wrote: »

I also have my own account. a standing order goes out of it each month to the joint account which is mainly meant for the mortgage and kids school fees etc. But she has been dipping in to it, I have a meeting with my solicitor and a barrister tomorrow because she has been burying her head in the sand about the whole financial side of things.
I wasnt aware of mortgage interest support.

School fees???

Definitely speak to the mortgage provider about going onto interest only. Use the online calculator to work out how much this would save you:

http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

How much equity is in the house? Why did your ex reject the offer?

Also, why can your ex not work full time given you are working two jobs?