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Mortgage Help Required

Me and my ex husband split up about 6 years ago and had an interest only mortgage and owe £94763.48 (was took out in 2004) I rang my mortgage provider to try and get transfer of equity but they said my mortgage was unregulated and I can not make any changes. I also have a secured loan with outstanding balance of £21555.10 making a total of 116318.58 outstanding. I have a new partner who earns 30k and I earn 18k . My question is what do you think is the best way round this? Do me and my new partner need to have a deposit?

Comments

  • kingstreet
    kingstreet Posts: 39,335 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Continuation of existing thread;-

    https://forums.moneysavingexpert.com/discussion/5185785

    A deposit for what?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • orangatan
    orangatan Posts: 23 Forumite
    To remortgage with my new partner?
  • kingstreet
    kingstreet Posts: 39,335 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The equity in your home is your deposit.

    If you have no equity after the current mortgage and loan would be repaid, you would need to inject enough cash to generate the amount of equity the lender would want.

    If you have £116k outstanding and the new lender will go to 90%, the property would need to be worth £129k.

    If the equity isn't as much as that £13k, you'd need to put in enough cash to make it that big.

    So the answer depends on the value of your property and how much you might also need to repay the other party who is leaving the ownership.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • orangatan
    orangatan Posts: 23 Forumite
    Thank you so much for that :) I now understand it a bit better. I don't think I have enough equity in house for a deposit so looks like I need to start saving.


    The other party does not want anything from house.
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