Using rent For mortgage after break up

James7788

Hi

Hoping to get some advice as not sure going to my mortgage provider (Halifax) is the best thing to do yet.

So my partner and I took a mortgage out 18 months ago of ~£350k (85% LTV) for property in London. Unfortunately we have recently split up. I plan to buy her out of her share but I am worried about what to tell the bank (which i need to for changing the deeds of the house)

My lone salary of £55k won't cover the lending. I currently have 2 options (or combination of the two).

1. I will have someone move into the other room which will provide ~£600/month in rent. Can I use this to cover towards the mortgage (it would be 1/2 of the monthly repayments). Will this be enough by itself?

2. My dad is coming up to retirement and he has some money he is looking to put away somewhere from his pension. He has £100k ish which he could put into the house as a loan. However this would only take it down to ~ £240k which is still 4.3x my income (and guessing there would be sort of early repayment fee for wanting to pay off more than 10% in a lump sum.

All advice appreciated.

Should i just go talk to Halifax? Reason I am not doing this is because if they so no to the above then i may not have an option apart from selling which i do not want to do.

Thanks in advance

James

Thrugelmir

James7788 wrote: »

Should i just go talk to Halifax? Reason I am not doing this is because if they so no to the above then i may not have an option apart from selling which i do not want to do.

If the property is unaffordable / you don't meet lending criteria then little point in trying to avoid the inevitable. As much as you have no wish to do so.

kingstreet

1. Non-starter

2. Possibly. The income multiple you mention isn't extreme, but the lender will have an issue with him lending you the money as he will have an interest in the property but not be party to the mortgage.

Yes to the ERCs as overpayments are limited to 10% of outstanding balance per annum.

DevilsAdvocate1

kingstreet wrote: »

1. Non-starter
Yes to the ERCs as overpayments are limited to 10% of outstanding balance per annum.

No necessarily so, as I can overpay any amount on my mortgage. Think it depends on your particular mortgage, so the OP would need to check their terms and conditions.

Also, I don't think you can simply just take your ex off the deeds / mortgage. They will won't both of you on and will come after either or both of you if there is a default.

Thrugelmir

DevilsAdvocate1 wrote: »

No necessarily so, as I can overpay any amount on my mortgage. Think it depends on your particular mortgage, so the OP would need to check their terms and conditions.

Fixed interest rate products without exception have some form of penalty. This is for commercial reasons not to directly penalise the borrower.

James7788

Thanks the replies - I know my max. over-repayment is 10% before hitting a penalty.

Is my best solution to talk to Halifax first? Or potentially my personal bank (Natwest) potentially with the intention of moving to them in Sept. when it is up for renewal (I could leave my ex on till then - things have ended on good terms).

Or should i seek some financial advice (if so where...)

Thanks all