Negative Equity

johnwebby83

Hello

I was just wondering if any could give some advice.

My partner split up with her ex husband 10 years ago and moved out the house they had bought. H e was unable to get a mortgage on his own so my partner said as long as he was paying the mortgage she would stay on the mortgage as it was a amicable split.

10 years on he has now said that he can not afford the payments and advises us that it has been on an interest only mortgage since they took it out and has never been changed to a repayment mortgage. They owe £139k including a £13k loan added on. It has 15 years to run and they have been quoted a repayment mortgage at £941 a month which is not affordable and rent in the arrear for similiar houses is £600.

Her ex has now been told he has Cancer and the outlook is not good.

She was told by the mortgage people and citzen advise to speak to a financial advisor who has said speak to citzen advise.

We have been made aware that it will basically be down to either repossesion or sell and take on the debt that is left if that is possible.

If anyone could give some further advise it would be much appreciated

thanks

stingey

Hi

Does the ex partner have any Insurance thar would pay out in the case of a serious illness? Some pay out a lump sum or repay the mortgage in its entirety.

foxy-stoat

Best thing to do is to find out how much negative equity will be owing after the property is sold and all fees paid and see if you can finance the shortfall - that will leave your partners credit history intact.

Anything else and it will be trashed for a long time.

Is the ex going to leave the property and live elsewhere?

Was the £13K added after your partner left - if so that will be in the name of the ex only.

johnwebby83

The negative equity will be about £35k to £40k depending on fees.

He is moving out if selling

The 13k is in both names.

No insurance or critical cover as he cancelled this.

35 to 40k would be split but also may just fall on my oartner so no real option of financing.

thanks again

foxy-stoat

Are you named on a mortgage at the moment and do you have other debts?

brewthebear

In the 10 years have you paid any rent or saved money ? if he was paying the mortgage was you living there free ..Surely knowing negative equity you have saved something towards it.

johnwebby83

No not really, savings are not a lot a couple of grand. She moved out and he was paying mortgage on his own it was a verbal agreement she would not change the mortgage as he couoldn't afford one on his own and as long as he was paying it she was ok to do that.She was told it was 2 years then changing to a repayment but now found out it had stayed on a interest only.

I am not on a mortgage but do have a couple of debts

foxy-stoat

You could hand the keys back to your lender and go down the IVA/BR route, that would wipe all your debts and finally rid yourself of the property.

How much are you left at the end of the month? It maybe better for you to have a few more debts if you have too much money left, if you understand