Still owe £35k and mortgage term is up!?!

CharlotteJT

Hi everyone.

Ok so we are in a bit of a pickle.

I got a mortgage with my husband (now ex husband) in 1997. We borrowed £42,500 over 15 years. Now 21 years later, £35,000 is still owed.

While we were married, I knew nothing about the mortgage. He was the one that organised that side of our affairs. We got divorced in 2005 and I have been paying the mortgage on my own ever since. It was not until a few years ago that I found out it was an interest-only mortgage. I did manage to get the mortgage term extended, but it has now ran out again.

We both want his name taking off the deeds, but this means that I will have to start a new mortgage on my own from scratch and with a low income and no savings, it will be a struggle.

I don't have much knowledge about mortgages so I was hoping that someone could give me some advice on what my options are. Ideally, we would like to keep the house and go onto a repayment plan. I am looking at going to see some mortgage advisors also.

I have a perfect credit score and have never missed a payment or been in arrears. The only thing that lets me down is my low income.

Please feel free to ask me any questions as I feel like I haven't given much information!

Thanks in advance.

foxy-stoat

How much is the property worth now?

What is your income and how many years left till you officially retire?

When you extended it did the lender ask if you had a repayment vehicle in place and how were you going to pay the loan back at the end of the extension?

andrewmp

Is your ex husband wanting his half of the current house value? If so, that'll make things even more complicated.

maysmummy

Hi
You will need to do some more explaining before any advice can be given
How long have you got to work?
When you divorced, why was your XH name still on the mortgage?
We're there any other terms on the divorce , e.g. was it a clean break or was there a pension sharing order and
Have you any children ( under 18)
This will make things a bit clearer

CharlotteJT

foxy-stoat wrote: »

How much is the property worth now?

What is your income and how many years left till you officially retire?

When you extended it did the lender ask if you had a repayment vehicle in place and how were you going to pay the loan back at the end of the extension?

We are waiting to get a valuation done but we are estimating it to be worth around £130k.

Income is £1,089 a month.

No idea how many years it is until I retire. Probably never!

Thinking back... in 2014, I was in discussions over the phone with my lender about extending the mortgage by 15 years. We agreed that if it wasn't paid off after another 15 years, the house would be sold to pay it off. They were meant to send out paperwork but didn't. I chased them up but never received any paperwork. I don't know what happened but they must have extended up to now.

CharlotteJT

andrewmp wrote: »

Is your ex husband wanting his half of the current house value? If so, that'll make things even more complicated.

No, he doesn't get anything.

CharlotteJT

maysmummy wrote: »

Hi
You will need to do some more explaining before any advice can be given
How long have you got to work?
When you divorced, why was your XH name still on the mortgage?
We're there any other terms on the divorce , e.g. was it a clean break or was there a pension sharing order and
Have you any children ( under 18)
This will make things a bit clearer

No idea how long I have got to work.

Orignally, when we first got divorced, the house went up on the market. I was supposed to get £90k and what was left was to be used to pay off the mortgage and my ex would get anything that was left. However, the house didn't sell and he just re-married and left us alone.

It was a clean break. No pension order.

No children under 18.

stator

How long until you reach state pension age?
The maximum term of the mortgage is obviously very important

eg if you only have 10 years then the repayment mortgage would be over £300
If you have a 30 year mortgage then it's more like £150

How much have you been paying per month for the current interest only mortgage?

CharlotteJT

stator wrote: »

How long until you reach state pension age?
The maximum term of the mortgage is obviously very important

13 years until I reach the state pension age.

CharlotteJT

stator wrote: »

How long until you reach state pension age?
The maximum term of the mortgage is obviously very important

eg if you only have 10 years then the repayment mortgage would be over £300
If you have a 30 year mortgage then it's more like £150

How much have you been paying per month for the current interest only mortgage?

Per month I have been paying £134.

foxy-stoat

CharlotteJT wrote: »

13 years until I reach the state pension age.

Speak to a broker or your mortgage adviser, you should be able to get a 13 year repayment mortgage for £35,000 based on your salary. Should be £250-£280 a month depending on the interest rates.

Your Ex will need to sign a Transfer of Equity form for the lender - he is happy he is giving away £50K or was it in the divorce settlement?