Mortgage or sell up and rent

angeljay

This could be a silly question really but I would like someone else's opinion, I have added numerous threads before about buying a house with my ex partner he moved out over 5 years ago and now I live with someone else in same house and we are looking to get married in next couple of years.


House is still in mine and ex partners name, he pays nothing towards it around 74k secured and 15k unsecured on mortgage with NR.


I have about 13K credit cards debt - no late payments always paid
Partner has about 6K and is on debt management plan

We would like to get somewhere in our own name whether its the house we live in now or consider selling up and renting.


I presume our changes of re-mortgaging the house in our names is slim to nothing with the market at present?


Should we still wait for a few more years maybe up to 5 or more to lower our debts and then try re-mortgage or sell up and rent somewhere so that is in both our names?

We will never have children so won't leave the house to anyone in the end.


There is some work that needs doing to house costing around 5K which we will never be able to save at this rate so wondering what is our best option.


Thank you for your advice.

angeljay

Forgot to mention partner has about 4K in car credit as well.

ethank

You will not be able to make any changes without your ex's permission. Are you still civil with each other?

angeljay

Yes, as far as I know not spoken in over 4 years but may still have his email address. However what is the chances of getting a mortgage in our situation?

Thrugelmir

angeljay wrote: »

However what is the chances of getting a mortgage in our situation?

Your unsecured debt is going to be a major issue.

You need to weigh up if selling the house will enable you to put your finances into a better position. Sometimes life can become hamster wheel just servicing debt. If you have your Light Bulb moment don't waste

dimbo61

How much is the property worth in its current state.
If you sold the property can you clear All the debt on the property both mortgage and loan.
Will there be any money left to pay down your other debts ?
You are both living way above your income with £23,000 worth of debt plus the mortgage and loan on top.
How much does the mortgage cost each month ? What would it cost each month to rent a property of the same size ?
There are selling costs and your EX may want a share.

angeljay

We actually do live within our means even with the debt, manage to save some money for luxury items and pay all bills at same time. Would have to investigate the price of the house but for something similar it would cost more than paying for mortgage. Mortgage is currently interest only on secured part but I do make a payment towards this as an extra each month so its classed as interest only but paying it off slowly.

dimbo61

Interest Only mortgage as well.
Are you overpaying every month by enough to clear the mortgage before you retire ?
Please look at Martin,s website and try and save every penny you can !
Cheap insurance, cancel the Sky, PAYG mobile, dump the landline if possible.
Shopping at Aldi , Lidl, Farmfoods etc cheap holidays in the UK or eurocamp in France, Holland, Spain.
Look at every single bill and see if you can get a better/cheaper deal.
Quidco, vouchers, three for two, sandwiches and flask of coffee or tea.
Not Costa coffee, no takeaways and home cooking.

Thrugelmir

angeljay wrote: »

We actually do live within our means even with the debt,

Everybody does until the pay cheque doesn't arrive one month. Or the debt goes out of control, i.e. interest rates rise and unforeseen expenditure arises.

Lenders will assess the probability of this happening. As that's where the risk lies.

angeljay

Thank you for your advice guys, I think the best option for now is maybe to stay where we are see what happens with interest rates etc and work things out in the future when they happen.

In regards to interest only, my plan is to adjust mortgage payments once we are clear of some of our debt payments which are coming down slowly.

Does anyone know what would happen when we got married legal rights to the property etc?

angeljay

I understand the risks with debt etc and they are my own doing but I was asking for our options with the property as to would we ever get considered for a mortgage together or would it be better to sell up and rent even though we financially would not be better off?