Mortgage problems advic needed....

jay_wales

Hi, thanks in advance to anyone that replies!

Basically, when I was 19/20 I bought a house with my girlfriend although the mortgage and house deeds were in my name. After about 4 years we subsequently split up and I lost my job, eventually the house got repossessed. That was 4 years ago, I'm 29 now and have a decent enough job and a new partner with whom I want to buy a house with.

First bit of advice I need is:
The bank in with I've had in the past and repossed the house has written to me today asking for my earnings and expenditures, to recoup the difference with the mortgage. Which is about £30k. With this I'm wondering what options are available for me, I've over the last 2 years started to get control of my life and get back on track and whilst I knew this was probably coming, it's thrown me.

Second is:
My credit rating is at the moment poor but it's going up gradually and I'm not far off a fair rating. We've got about £12k in savings. My partner is paid £16k a year, would it be possible for us either to get a joint mortgage, with my credit rating or with that deposit would my partner get a mortgage on her own? We're looking at house that are between £80-100k.

Thanks for all you help.

AdrianC

You owe that money. It really is that simple.

Let's say your mortgage was £100k. When they repossessed the house, they recouped £70k after all the various fees and charges. That leaves a shortfall of £30k, which you still owe.

It's unlikely that anybody is going to give you another mortgage at the moment - not with £30k of debt hanging over you from a repossession.

As for your partner getting a mortgage on her own... 4x salary = £64k+£12k deposit = £76k. A bit short for the bottom end of your range, even if stress testing and affordability testing would give her much wiggle room on such a low salary.

You'd be best off putting the savings towards your outstanding debt.

silvercar

If you already had the new mortgage, the old debt chaser would allow for it when trying to understand your current commitments and how much you could afford to repay.

It's unlikely that anybody is going to give you another mortgage at the moment - not with £30k of debt hanging over you from a repossession.

This debt is unacknowledged at the moment, OP will have to declare a previous repossession if asked, they won't have to show the debt until they have acknowledged it.

Time to see a mortgage broker. They will know which lenders will consider someone with a previous repossession.

Personally I would hold off responding to the old lender. You will have to deal with it sooner or later but now may not be the best time to acknowledge it. Hopefully they will also chase your ex.

jay_wales

Thanks for your responses, I'll look to set up a meeting with a broker in a few months, see if my credit rating goes up anymore in that time.

-taff

silvercar wrote: »

Hopefully they will also chase your ex.

They won't because she wasn't on the mortgage.


Contact the National Debtline for advice on mortgage shortfalls.

https://www.nationaldebtline.org/EW/factsheets/Pages/11%20EW%20Mortgage%20shortfalls/Default.aspx

https://www.nationaldebtline.org/EW/factsheets/Pages/25%20EW%20Time%20limits%20for%20recovering%20debts/Page-04.aspx