Remortgaging - My story, advice sought

kelie

Hi everyone,

I'm quite new to MSE but I have been lurking a while and I am in a pretty messy situation at the moment so I thought I would post and see what you all have to think. I'm not sure if this is the right place to post, so I apologise if it isn't.

Basically I bought a flat with my "then" boyfriend 7 years ago. We were very fortunate and snapped it up for £28,250. We sold is last October for £90,000.

We paid off a few credit card debts / house selling / buying fees and we were left with £60,000 to put down on the next place. 30k each. We purchased a new build house, a three storey townhouse for £177,000 reduced by the builders due to someone pulling out last minute so all of our options were chosen for us. We put down the £60,000 as a deposit so our mortgage is £117,000.

The big problem being, we have split up. A week after we reserved the house. We are both self employed and used to run a business together and have split that equally too taking our own clients with us. We are both still living here - he wants to sell, I think I want to try and buy him out because it really is a big house and was a good price.

I have worked out that if I remortgage (if I can even do so self certicated on my own, phoning the mortgage advisor tomorrow) that I would need to remortgage for £147,000 to give him his 30k and send him on his way. The monthly repayments will go up quite a lot and I have worked out the following is my monthly outgoings if I cancel non-necessity things such as the gym and my blockbuster DVD rental etc.

Mortgage: 1000 (approximately when remortgaged)
Council Tax : 136
Electricity / Gas: 42
Telephone: 41.5
House Insurance: 25.2
Broadband: 18
T-Mobile: 44.83
Business Expense - Server: 260
Business Expense - Software License: 75

Total monthly outgoings not including food / fun: £1262.70

Last month I worked out that I took in £1530.33

I have a credit card which has an outstanding balance of: -£1,481.93

I don't have a car at the moment so no bills for that. I am currently also supporting my new boyfriend who is out of work. He has said that he will contribute towards the house when he is sorted but I am not relying on that. I need to be able to do this myself.

So I guess the question I am asking is any advice? I am going to try upping my income using some of the tips on the forum and also reduce my monthly bills including budgeting for food and drink. My boyfriend drinks quite a lot and it eats away at my budget!

Peelerfart

Hi Kelie,

Probably better off posting in the remortgage section more than the MFW bit.
I think you need to speak to mortgage advisors on this one so you maybe be able to post better info tomorrow .
There will be someone here better qualified than I to advise you.

kelie

Am I allowed to repost it there or will a mod move this thread?

Thank you for your help

Incisor

kelie wrote: »

... I am currently also supporting my new boyfriend who is out of work. He has said that he will contribute towards the house when he is sorted but I am not relying on that. I need to be able to do this myself.... My boyfriend drinks quite a lot and it eats away at my budget!

Get a cat, it's cheaper. Personally, I don't think a boyfriend should be drinking if he is being supported.

Regarding the old boyfriend, your choices are to sell, or for you to buy him out. If you got £177,000, you would still have to pay legal and estate agent fees, so he would get less than his £30,000 back. You could also argue that prices will be down etc, but I think it would be mean to do that. However, it could be an argument to deploy to get him to make some allowance for not putting it on the market if he doesn't understand that argument

belfastgirl23

hmmm...an unemployed boyfriend who drinks a lot on your money does not sound like a good catch at all....

Have you thought about getting a lodger to defray some of the costs for the first few years?

kazwookie

Sorry to hear of your problems, but the new boyfriend seems to be adding to them.

Why are you supporting him, and why is he drinking your money?

alfiesmum

Hiya,
Just wondering if you could clarify. How is it that you're supporting your new boyfriend, when you said that you still live with your old boyfriend? Does the new boyfriend live with you too? Or do you just give new boyfriend money when he wants/needs it? Can't tell you what to do there, you're happy with the way things are then it's up to you, but if it were my daughter being used in the same way, I'd have plenty to say!

Also, I think you'd have to pay your old boyfriend more than his £30,000 back. If the house has gone up in value, then he entitled to his share of the new market value. I think anyway. You'd have to get a valuation of todays value to see what you would have to pay him to own it outright by yourself (for goodness sakes don't put the new bloke on there - you'll be back to square one!)

Hope it all works out for you.

hughmungas1986

Why are you paying so much for your landline phone and your mobile, would it not be cheaper to get rid of the landline and get a really good deal on a mobile ?

Oh and I'd certainly get your new man to cut down on the booze, not only does it eat into your budget, would you want to eventually marry a man with potential heart / liver problems due to his drinking.

Sorry to sound cynical, but I've seen some good friends suffer due to drinking.

hughmungas

kelie

Thanks for all your messages Let me try and answer them in as much detail as possible

Firstly, I bought the house in December with my Ex. We both live here. We have 3 floors so he sleeps on the top floor and I sleep on the middle one in separate bedrooms. At first the new boyfriend only stayed over once a week or so but he has lived here now for the past 2 months solidly apart from 3 nights. He hasn't officially moved in and contributes nothing to the mortgage / bills.

My ex is back at his mums at the moment due to personal stuff happening there but he will be back shortly.

I thought about getting a cat or a hamster, it certainly would be cheaper! lol but with current house situation decided to wait until I knew what I was doing.

The current boyfriend was in work until January when he lost his job due to not notifying them of a holiday he was going on. Since then he hasn't worked he is trained in sport but he was labouring. I keep pushing him to get something because it would make my situation a lot easier but I guess me supporting him with food / drink etc doesn't really help matters. If I stopped all financial support he wouldn't have a choice would he. The drinking does worry me and I am annoyed with myself for falling in love with him so quickly. I have asked him to cut down and only drink on saturdays but so far with no job he drinks around 4 or 5 times a week.

I phoned the mortgage advisor today, he said that because we are on a 2 year fixed rate we would need to pay a penalty for ending the mortgage sooner of £3540 and then at least £1000 in legal fees to get the ex taken off the deeds etc. I was planning on taking over the house by myself, no men at all so I can kick them out and move them in whenever I want to! Time to be independent for a change.

I can't take over the existing mortgage as they won't lend me enough. I worked out that if I pay back the ex his 30k, i need to remortgage for 147k that doesn't include the fees we'll / i'll pay. The mortgage advisor said that I would need to get a self cert mortgage which isn't a problem, and to consider taking on an interest only mortgage. All my figures I have been doing have been on repayment mortgages. If I take on an interest only mortgage for 2 years fixed rate it would be between £735 and £800 a month mortgage which is £200 or more cheaper than I budgeted for.

I need to get in touch with the ex (who isnt returning my calls or texts which doesnt help!) to find out about getting the house revalued, if he would be willing to split the mortgage penalty and if he would be willing to let me buy him out in the first place.

The only thing worrying me is if the mortgage rates go up to something completely scary like 16% like they did in the 80's? I am only 26 so I don't remember that but I wouldn't be able to afford repayments on that no way.

kelie

Ooh forgot to mention a reply to a question. I have no idea why BT is £41 a month although we just had the line installed in December and the ex set it up. I can get that down because I rarely use the phone I need a landline for broadband though as I work from home.

My mobile I am in a contract until April next year. It's with T-mobile and was an 18 month contract, it's a PDA with internet access and data package which I need for my work. I get £120 call / text allowance a month and I am using pretty much all of it.

I can't really get lodgers in due to the nature of my business I am up weird hours as a lot of my design clients are in america. Worst case scenario I could I guess but would rather look at other avenues first.

Incisor

alfiesmum wrote: »

... I think you'd have to pay your old boyfriend more than his £30,000 back. If the house has gone up in value, then he entitled to his share of the new market value. I think anyway. You'd have to get a valuation of todays value to see what you would have to pay him to own it outright by yourself (for goodness sakes don't put the new bloke on there - you'll be back to square one!) ...

If it went up in value. But more likely it has gone down. And half the drop on £175,000 is going to look shocking taken off the £30,000.