Re-mortgage query and amount

Ianh82

hi

split with my partner before xmas and the house is up for sale. We live in essex and the price was 168000 last year but max now is 160000 which is still not shifting.

i have the option if i can get a good enough deal to stay and buy her out. i have spoken to am estate agent and he said base your figures on about 155000 so you need to borrow about 25000 to pay her off ( only 105000 o/s on nationwide mortgage that ends this month)

an independant advisor has said she would actually do it at 150000 due to the continual house price fall.

what should i base a re-mortgage on, one that i can afford and that she'll be happy with. the split was not acrimonious what so ever, friendly part etc.

also, need a new mortgage, whats a good deal at moment, fixed rate either 2,3 or 5 yr. did look at hsbc but they want 1700 fee :mad:

MarkyMarkD

You should definitely consider keeping the mortgage with Nationwide, and doing a transfer of equity and then a product switch.

This may work out cheaper than redeeming the Nationwide mortgage and starting a new one elsewhere.

Regarding the price, I would have thought a sensible thing to do would be to agree with your ex-OH to take the average of 2 or 3 valuations.

Ianh82

MarkyMarkD wrote: »

You should definitely consider keeping the mortgage with Nationwide, and doing a transfer of equity and then a product switch.

This may work out cheaper than redeeming the Nationwide mortgage and starting a new one elsewhere.

Regarding the price, I would have thought a sensible thing to do would be to agree with your ex-OH to take the average of 2 or 3 valuations.

cheers for that.

trouble is, nationwide are funny as my dad has to join me on my mortgage as i can't get enough on my salary alone. i earn £24k a yr.

with him on they should be able to.

MarkyMarkD

Very few lenders are going to lend you £130k on an income of £24k.

Are you sure you can actually afford to keep this property?

Ianh82

MarkyMarkD wrote: »

Very few lenders are going to lend you £130k on an income of £24k.

Are you sure you can actually afford to keep this property?

my dad will be a joint mortgage and the payment on an interest only basis will be £650 a mth. with that and my other bills which are fairly cheap as i dont use much elec or gas will be within my budget per mth with a few hundred spare.

but if i can't afford it after all my sums are worked out, i will just sell it and move back home or rent.

Ianh82

i have now gone for an abbey 5 yr fixed rate at 5.61% on a repayment basis and i can afford the repayments. i no longer need more than 110000 inc 1000 set up costs as dad is paying her off. agreed on 152500 valuation so just over 22k to her.

but i'm nbot sure what i should do. i may do a split 70/30 repayment/interest mortgage. are these worth doing? i can afford the 684 pmth payment with all other bills i will have 300 + spare a mth to go out on and save.