Joint Mortage with Help To Buy Scheme-what next after relationship break down?

RubyWoo25

Hi Everyone,

My partner and I have recently split up after living in our house for just over a year. We had a joint mortgage with nationwide and bought our new build house with the governments help to buy scheme (government owns 25% of house).

Now we have split I am really unclear as to what my options are. Would it be possible for one of us to take on the mortgage (and remove the other) or is this not possible as it was originally the 2 of us who were granted the help to buy government loan?

Also I am not sure with my affordability whether the bank would let me have the mortgage on my own (we have 87,000 left on the Mortage and I earn 19,100)? Plus if I went into the bank to ask about this and they ran the checks and denied me the Mortage would this affect my credit rating?

Or would it be more sensible to sell up and split everything? However I am conscious that because we only just moved in and did not have a large deposit we would be likely to only break even after estate agent, legal and mortgage fees etc.

If anyone has any advice or has been in a similar position I would be extremely grateful I definitely never expected to find myself in this position and am therefore feeling extremely unprepared!

dgtazzman

I was in exactly the same position last year.

You can easily take over the equity loan, this is a pretty straight forward process, but I believe it can only be done once. Contact Metropolitan to find out how to proceed on this (https://www.myfirsthome.org.uk/).

The mortgage is another matter and would best be done via a solicitor, actually, Nationwide might insist on it. The cost of the process through a solicitor was around a grand when I was looking for quotes, but in the end we just sold up as there was just enough equity in the house to make a clean break. Also, it might be very tight on LTV on your sole income, so you might not even qualify, you can check Nationwide's mortgage calculators on their website to check.

Another option would be to just keep your ex on the mortgage until such a time that you have paid it down to an amount so you would qualify for a mortgage by yourself, but your ex would have to agree to it, as she wouldn't be able to get a new mortgage herself in the meantime. It might also complicate things if things between the 2 of you get ugly at any point.