Options for stopping paying my Ex's mortgage

hippyjim

I moved into my Ex's house about 18 years ago, and about 7 years ago, we remortgaged, adding my name to the mortgage so we could increase the loan to get some work done.

About 9 months ago our relationship ended and I moved out with our son - leaving my ex in the house with her two grown up kids. The split was relatively amicable, mostly because I agreed to keep paying half the mortgage, as well as a few of her bills that are in my name, such as her mobile.

I'm now renting and also paying half the mortgage - which is almost as much again as my rent. I'm really struggling financially - I've been getting by due to the odd bit of extra work here and there, but I don't have a steady second job, so some months are really tough.

My ex has a debt management plan, so she can't get credit. She asked the mortgage provider to remortgage in just her name but tells me they're unable to do so as she'll be a customer "for too long".

Since then she has been made redundant. Right now she's living off the redundancy money and is actively looking for a new job but it's unlikely she'll get something that pays as much. It's not looking good for her to be able to take over the mortgage any time soon.

I don't care about "equity" etc, I just need to stop paying for two places to live! I don't want to kick my ex out on the street, but I have to put the needs of my son first.

Partly I'm worried that her poor finances (and total lack of ability to financially plan!) will end up with her not paying the mortgage, and I'll be forced to pay the lot, or risk not being able to get credit anywhere (or pass a rental credit check). Mostly I just need to not be paying out a quarter of my wages for a house I don't use.

Does anyone have any suggestions about how to deal with this?

ACG

The biggest issue short term is like you say paying yur rent, but long term any missed mortgage payments or partial payments will hinder your credit report for years to come.

I would suggest you speak to a solicitor or get legal advice - is it on your home insurance maybe?

hippyjim

Thanks ACG - that sums up the risks I was expecting.

When you ask about my home insurance (all in my Ex's name as far as I know) were you meaning that the insurance might pay for the solicitor's time? Other than that, I'm not sure I could afford it.

I've tried CAB in the past but got the impression they thought I should just suck it up!

Thrugelmir

hippyjim wrote: »

Does anyone have any suggestions about how to deal with this?

Sell the property and separate your finances. You say that you are not interested in the equity. So it should be fairly straightforward. Providing the interest is paid on the mortgage debt no arrears will accrue. This will minimise the risk to your own credit history.

ACG

They may offer you advice and support over the phone. I do not think they will pay for the legal advice however.

TrickyDicky101

Thrugelmir wrote: »

Sell the property and separate your finances. You say that you are not interested in the equity. So it should be fairly straightforward. Providing the interest is paid on the mortgage debt no arrears will accrue. This will minimise the risk to your own credit history.

That's incorrect afaik. Unless agreed by the lender in advance, the contractually agreed repayments won't be being made in full and hence the capital element will accrue as arrears although, in the absence of other charges, the total amount owed will not increase. This will still impact the OP's credit file.

nkkingston

Unfortunately, you made a legal agreement to pay the mortgage, and though it feels like that ought to be contingent on your remaining in the relationship, it isn't. If your ex isn't in a position to take over the mortgage on her own, and neither of the other adults living in the house are in a position to join her on it or take it over entirely, then the only other option is to sell the house and free the lot of you from it.

hippyjim

Thanks all.

My ex would be unwilling to sell, as her mother lives 2 doors down. She wouldn't be able to buy me out even if I sold my half to her for a penny, as previously mentioned, so separating the finances by selling doesn't seem likely.

I was pretty sure that missing or incomplete payments of any kind would have some impact on my credit file, and as I'm planning on moving to a new rented place next year I need to keep it spotless. My job also requires a certain level of "good standing" too.

Looks like I'm still stuck here - though if I can work out who the house insurance is with I may give them a call.

I'll have to hope one of us wins the lottery, or that she hooks up with someone who can afford to take on the mortgage, otherwise I'm going to spend the next 20+ years paying this off and pretty much spend the rest of my days renting. Crazy situation!

Thanks the help, folks.

JimmyTheWig

Thrugelmir wrote: »

Sell the property and separate your finances. You say that you are not interested in the equity. So it should be fairly straightforward.

I agree with this. Get it sold.
If she ends up with all the equity then she can afford to rent somewhere until she finds work again.

Providing the interest is paid on the mortgage debt no arrears will accrue. This will minimise the risk to your own credit history.

But I'm not sure that I agree with this.

chelseablue

How many years does the mortgage have left to go? If she's been there 18+ years it might not have too much longer left

JimmyTheWig

chelseablue wrote: »

How many years does the mortgage have left to go? If she's been there 18+ years it might not have too much longer left

My guess would be that they upped it back to 25 years when taking the additional borrowing 7 years ago. So still 18 years to go, I'd say...