Interest Only Mortgage help

Sar2478

I have an interest only mortgage with 6 years remaining left to pay.

I have been out of work now for 2 years due to I'll health and have mortgage arrears of 4800.

My partner is currently paying all the household bills etc.

My question is that the mortgage is only in my name and I have very poor credit rating. I would like to remortgage and have my partners name on the mortgage be he also has poor credit as he has never borrowed etc. He now has a credit builder card.

I am.not sure what is best to do to do. Do i sell my home and rent or do we try and remortgage with our credit history.

We have 3 children and it's been there family home since birth and go to schools locally. Just not sure what to do and worried about coming off the property ladder

We would have ab out 70 to 80k equity if we sell.

Thanks for your help

foxy-stoat

Try your lender first and see if you can remortgage to a repayment product rather than interest only. Assuming your repayment strategy was to sell and down size, or do you have an endowment policy?

Sar2478

Hi I have no endownment as my ex dealt with mortgage and when we split up he signed over house after taking his share of equity.

Our mortgage lender won't let me remortgage due to my credit rating as I have missed payments on mortgage and also not earning so only my partner works and his name is not on mortgage.

Just don't know if it's best to sell and rent and get credit rating stable or keep overpaying a bit each month and once credit rating is stable and I'm hopefully back at work try again. Just such a worry on what to do as my long term health isn't good.

Thanks again

sal_III

You still have 6 years, sort your your credit rating and income and remortgage in due course to repayment mortgage.

foxy-stoat

Get your arrears sorted and try and build up good credit history and save what you can.

As long as you know that you either need to pay for the house you bought in 2025 or look to put it on the market and down size when the time comes.....hopefully your still with your current partner and you can get a joint one when you have 4 or 5 years of good credit history and some money left over for a deposit.

I dont think selling now would be the best thing for you to do.

Sar2478

Thank you for your help. It's such a worry. My main priority is for the kids to have a happy home. Thanks again sarah:j

Thrugelmir

Can your partner afford to pay the mortgage? If so, why isn't he already. To stop the situation spiralling out of control.

Sar2478

Yes my partner is paying for everything at the moment and overpaying on the arrears too