Low income remortgage to buy out ex partner

Inapickle80

Hi, 
As my name suggests, I’m in a bit of a pickle! 

I own my home with my ex-partner. Things are amicable between us, and he now wants to come off the mortgage/deeds so he can move on with his life (understandably). He has been very kind and rather than ask for half the house he only wants £10,000.

He moved out around 6 years ago and I have been paying the mortgage myself in that time. However, I am on a very low income so I’m not sure if I will be able to get a remortgage by myself. I have an excellent Experian credit score of 999, but only earn £13,500 a year. I have credit card debt of £4000 and I am in my overdraft by a couple of hundred for the last few months which I know does not look good to a lender. However, I pay my mortgage, bills and credit cards each month without missing a payment and have never been refused credit. I have no children/dependents and am single. 

I recognise this isn’t a great situation, however it was a little unexpected. I am currently looking for better paid jobs to help with an application but obviously that’s not guaranteed. 

There is approx £58,500 left on the current mortgage, and my property is worth around £165-170,000 so I my only hope is the the LTV ratio works in my favour. 

Ideally I would like to remortgage for £72,500 so I could also clear my credit card debit at the same time (not sure if that’s a bit naughty), but at the very least need a mortgage for £68,500 so I can pay the £58,500 owing currently and the £10,000 to buy out my ex. 

I really don’t want to have to move, this property has been my home for 16 years, and I’m scared that by going to see a mortgage advisor they will laugh me out the door ☹️

Any advice would be gratefully received. Thank you for getting this far! 

MaryNB

Your experian score is irrelevant. Experian doesn't grant loans and lenders don't see that credit score, they do their own internal scoring based on the data on your credit report. Also you need to check all three reports - Experian, equifax and transunion (don't pay, use the free websites - MSE credit club, clearscore and credit karma respectively).

The standard salary multiplier is 4.5x so you won't even make the £68.5k. You have quite a significant amount of debt for such a low salary so that would count against you and could reduce the amount you can borrow. The amount you have to repay each month will be accounted for as part of the affordability assessment.

ACG

Who is your mortgage with? 
We did one of these a couple of months ago, the customer had been able to evidence she had been paying the mortgage on her own for 8 months, the lender was happy to take the ex off. I am not sure if you can get the extra £10k though. 

Inapickle80

ACG said:

Who is your mortgage with? 
We did one of these a couple of months ago, the customer had been able to evidence she had been paying the mortgage on her own for 8 months, the lender was happy to take the ex off. I am not sure if you can get the extra £10k though. 

The current mortgage is with HSBC. That sounds fab, it certainly gives me hope. 

I’m very grateful he only wants the £10k, but perhaps I’ll have to look at other options post mortgage application somehow if he’ll trust me enough to hold off a little longer. 

ACG

The one I did was with a different lender. Im afraid I do not have access to HSBC so do not know their stance but you could speak to them. 

Failing that, I can only suggest speaking to a broker. 

Inapickle80

ACG said:

The one I did was with a different lender. Im afraid I do not have access to HSBC so do not know their stance but you could speak to them. 

Failing that, I can only suggest speaking to a broker. 

Thank you. 

If I went to HSBC and explained the situation can they terminate the current mortgage with the information I provide? I’m concerned if I tell them they will cancel it or make me sell up etc. 

ACG

No, so long as you carry on paying they can not change your mortgage. 

Inapickle80

Great, thank you so much. I’ll get in contact with them and see what they say. Thanks again.