Completely lost

kellbing

Thank you for your replies.

The secured loan was taken out at the exact same time as we got the mortgage, I was 18 at the time and used a mortgage advisor as we had no deposit and some debt she advised a 125% mortgage. We bought the house for 85k and used the secured loan to pay off debt and make improvements. The house has been up for sale for just under a year originally for offers over 85k we have since dropped it to offers over 69995 and had one offer for 52k.

Could he take out a new mortgage on the property whilst its up for sale?

Annisele

On the figures you've given, I don't think he's going to be able to remortgage elsewhere. 125% mortgages are no longer available, and at best he'd be able to get a 95% mortgage. (That's 95% of the current value of the property, rather than the price you paid).

It's hard to say what the current value of the property really is. It's clearly not £85k, or you'd have sold already. It's likely to be at least £52k (given the offer you've received) but 95% of £52k isn't going to help you with a £75k debt.

Have you and your ex talked about what you'll do if somebody does make an offer for £70k? You won't be able to actually sell for that price unless you make some arrangements for paying the lender the balance of the debt. Once fees are taken into account, if you do sell for £70k you're likely to have to come with £7k or so to allow the sale to go ahead.

Have you told your ex you're not going to be able to keep up with your half of the payments? If you haven't, I think you really should - because if he makes up the difference, that will protect his credit rating as well as yours.

kellbing

Thank you for your response I really appreciate it.

Have you and your ex talked about what you'll do if somebody does make an offer for £70k? You won't be able to actually sell for that price unless you make some arrangements for paying the lender the balance of the debt. Once fees are taken into account, if you do sell for £70k you're likely to have to come with £7k or so to allow the sale to go ahead.

We spoke about halfing the amount and getting a loan as we thought the house would have sold way before now. With my current SMP pay I am guessing I wont be able to get any loans?

Have you told your ex you're not going to be able to keep up with your half of the payments? If you haven't, I think you really should - because if he makes up the difference, that will protect his credit rating as well as yours.

Yes I have told him I wont be able to pay I am currently awaiting his response as we speak via email only.

I have never missed a payment since I moved out nearly 2 years ago and scrimped and scrapped to pay it to protect my credit rating
but I physically cannot pay this money any longer so I can only hope that he pays until the house sells even then he will have to come up with the difference to pay the rest of the mortgage or we end in repossession (seems the fairest option in regards to neither of us havig to come up money we dont have)

Annisele

If the property is repossessed, that will trash both of your credit ratings. It also won't stop you from being liable for money you don't have - if the bank sells the property for less than the mortgage amount, you'll still both be liable for the shortfall.

You might benefit from talking through your options with somebody like Stepchange.

kellbing

Ah I didnt realise that - im clueless!

silvercar

Can your ex actually afford to make the payments? If he can then you could agree that you repay him at a future date or when the property is sold.

If the property is repossessed, that is a really big black mark on your credit rating and will effect you getting a mortgage in the future.

Just a thought, could you and your new partner afford to live in the property if your ex agreed to move out?