Mortgage dilemma

enthusiasticsaver

What is your income? Is this the sticking point for not being able to get the mortgage approved in just your name?

Lynith72

I have PIP
PENSION £13000
Age 53

Lynith72

I've retired through ill health.

enthusiasticsaver

Apologies I missed that in your OP and yes, there is no way you will get a mortgage for 10 times your income. Have you actually been able to remove your exes name from the deeds?

You have really only two choices. Sell the property for as much as possible and hope it is sufficient to repay the mortgage or continue as you are until the 15 year deadline when the property will have to be sold then or you will need to find the £130k at that point to repay it. Overpaying it seems the right way to go if you can afford it but the mortgage will need to go down a lot for you to be approved and very few lenders offer interest only mortgages. Also by the time you get to the point where the mortgage is low enough for you to take it on with your income your age will pose a problem in getting a repayment mortgage as the term will be too short for it to be affordable.

Is there a reason you need this sorted now? Can you not just continue to let the rent cover the mortgage and insurance?

Lynith72

I still have his name the deeds. I can continue for now...it's just so stressful. I think I might put it on the market as my tenant is on a 6 month contract and has renewed for 3 years in a row. I was thinking of a company that buys now but was hoping to get roughly back what paid but it's not looking good. Could I use my tentant as income and add it to my pension to improve my income?

Lynith72

Tenants rent as income

Thrugelmir

Lynith72 wrote: »

Ánd valued at £150000

Sell the property and use your savings to clear the negative equity. The longer term dangers are that interest rates will rise and/or the property will require refurbishment/maintenance. Resulting in an even greater financial loss. As difficult as it maybe cut your losses.

Lynith72

Sounds like I can't win. I just want it all to stop.... I'll put it back up on the market and try my luck as it's only a 10 year old build next to a new shoping with cinema complex..... thank you so much for your advice. Much appreciated

enthusiasticsaver

Lynith72 wrote: »

Tenants rent as income

You would need a BTL mortgage as you obviously don't live in the property and I think you can use the rent as income. Where you might come unstuck though is that they may not take your PIP into account. From what I understand you are not in negative equity so that is a plus.

John_G_Jones

Lynith72 wrote: »

Sounds like I can't win. I just want it all to stop.... I'll put it back up on the market and try my luck as it's only a 10 year old build next to a new shoping with cinema complex..... thank you so much for your advice. Much appreciated

How has it dropped so much? I’ve a house in Newcastle and looking at prices sold it seems to be worth about the same as it was four years ago.