Trapped in my mortgage !!

clarebear1000

I’m currently in my mortgaged property, it’s on the market for £375,000, of which £175,000 is mortgaged, £200,000 would be equity. I intend to downsize to give me a much smaller mortgage which is more manageable. My current mortgage deal came to an end so I’ve moved to SV with NatWest which I won’t be able to pay forever so I feel I’m doing the sensible thing in downsizing my home and mortgage.  Unfortunately my ex husband who was on the mortgage in name only to help me has been made redundant so is currently unable to help me qualify for the mortgage. I’m stuck paying £900 a month on SVR with no option to reduce my costs - how is this responsible lending ? Anyone have any suggestions ? Ideally I’ll move but the lowest I can purchase in my area is around £250,000 but it seems I can’t even qualify for a £50,000 mortgage on my own ! 

csgohan4

consider getting a broker, but you can only borrow X4.5 of your gross salary, but maybe you need to consider lowering your budget even further

MWT

clarebear1000 said:

Unfortunately my ex husband who was on the mortgage in name only to help me has been made redundant so is currently unable to help me qualify for the mortgage. I’m stuck paying £900 a month on SVR with no option to reduce my costs - how is this responsible lending ?

Edit: Clarified by LRmortgage below.

getmore4less

 NW SVR is 3.59%

£175k  £900pm  is 24y 4 months.
Brokers product transfer rate for 60% LTV(cheaper than DIY)

term	rate	fees	payment	add fees
2	1.21%	£995	£692.17	£696.10
2	1.52%	£0	£717.34	£717.34
5	1.38%	£995	£705.90	£709.90
5	1.77%	£0	£738.05	£738.05

Can you afford £700pm? 

That would give you 2 years to get sorted or go long with 5y fix.
Whats your income?

LRmortgage

MWT said:

clarebear1000 said:

Unfortunately my ex husband who was on the mortgage in name only to help me has been made redundant so is currently unable to help me qualify for the mortgage. I’m stuck paying £900 a month on SVR with no option to reduce my costs - how is this responsible lending ?

I hope I've misunderstood, but it sounds like you were planning to use your ex-husbands salary to misrepresent the available earnings in the household to obtain a higher mortgage than you would be able to do if you accurately declared the actual earnings available...?

MWT - a number of lenders will allow this, as long as correct process is followed and the lender is fully aware of the situation. In fact in divorce situations the courts sometimes order that the higher earner supports a mortgage on the family home for a predetermined agreed period of time, especially if kids are in involved. 

As long as all commitments are declared to the lender, I.e. the potential for rent on one property and mortgage on another or even 2 mortgages on 2 properties and it fits the lender’s affordability models / calculations there are lenders that would be fine with this scenario. 

ACG

Switch products with your current lender, you can do this via a broker or on the natwest website. 
That would lower your repayments. 

They do not need to allow you to port the mortgage to a new property even if that would lower the risk for both of you, but I would imagine they would it if you pushed it hard enough. 

pearsforlife

Responsible lending? Do people not read their mortgage offers/credit agreements these days? It quite clearly states the costs involved over the life of your mortgage and in your (desperation?) to get the keys to the house you didn’t mind signing the documents? 

clarebear1000

pearsforlife said:

Responsible lending? Do people not read their mortgage offers/credit agreements these days? It quite clearly states the costs involved over the life of your mortgage and in your (desperation?) to get the keys to the house you didn’t mind signing the documents? 

I have been in the house raising children for 17 years, husband left 4 years ago and at the time the mortgage lender was happy to take into account all my various income sources plus husbands generous salary to enable us to stay here. Because the children are nearing the end of their teenage years and starting to fly the nest I’m trying to downsize to give myself something I am able to afford myself, unfortunately not all situations are as clear as they might appear but thank you for your thoughts. 

clarebear1000

LRmortgage said:

MWT said:

clarebear1000 said:

Unfortunately my ex husband who was on the mortgage in name only to help me has been made redundant so is currently unable to help me qualify for the mortgage. I’m stuck paying £900 a month on SVR with no option to reduce my costs - how is this responsible lending ?

I hope I've misunderstood, but it sounds like you were planning to use your ex-husbands salary to misrepresent the available earnings in the household to obtain a higher mortgage than you would be able to do if you accurately declared the actual earnings available...?

MWT - a number of lenders will allow this, as long as correct process is followed and the lender is fully aware of the situation. In fact in divorce situations the courts sometimes order that the higher earner supports a mortgage on the family home for a predetermined agreed period of time, especially if kids are in involved. 

As long as all commitments are declared to the lender, I.e. the potential for rent on one property and mortgage on another or even 2 mortgages on 2 properties and it fits the lender’s affordability models / calculations there are lenders that would be fine with this scenario. 

There was no misrepresentation, NatWest were completely aware that he was on the mortgage to support me in name only and that he has another mortgaged property but earns enough for both. Although there was no official agreement in the divorce that he would stay on the mortgage for any specified length of time he’s happy to do so as long as needed. He obviously didn’t envisage being made redundant but the timing couldn’t of been worse and obviously affects us all. I’m trying to do the right thing in downsizing and reducing my outgoings, I’ll ring NatWest again and push them on the situation. I’ve always paid my mortgage, never defaulted in any payments, have no other debts or loans so hopefully they’ll consider it

getmore4less

Why not just delay the change two years go to the lower rate paying £700pm
Remember on that low rate over the 2 years of the £16,800paid out  only £4,100k(<£200pm)will be interest the rest is paying off capital so you will owe £163.5k rather than  £175k

tlc678910

If you are looking to downsize beware of any early redemption fees that you might have to pay if you choose a new deal or take a new mortgage and then need to pay it back early.  On the standard variable rate I expect you are allowed unlimited overpayments so you can pay your mortgage back when you sell without penalty.