Mortgage problems after relationship breakdown

dunga105

Hi, I wondered if anyone would be able to give me some advice on my mortgage problem. Basically My ex girlfriend and I bought a house together in April 2007. The mortgage is with Northern Rock, and is a together 125%. We split up about three months ago, and I can afford to pay the mortgage, but she wants to have her name removed from the mortgage asap. Unfortunately we are tied to the mortgage for another 2 years, which I have explained to her, and she seems to understand. The house is probably worth only £130000 at the most now, (with it probably only going to go down in value for the forseable future) and I would require a sale of about £155000 just to break even. When the two years is up my ex will definately want to be off the mortgage, and Northern Rock won't allow me to continue on my own, even if I've never missed a payment. What would happen if the house is worth a lot less than the loan and Northern Rock force me to sell? Any help would be really appreciated, as I really don't know where to start.

Thanks

grogdog

your only options are.

get a better paid job.
find another partner to join you on the mortgage.

you ex girlfriend is owed nothing anyway as you are in negative equity at the minute.

homer_j_3

You could apply for something called a transfer of equity. This is the process where you add/remove parties on a mortgage.

These will only be granted if you can support the mortgage on your own (in the lenders opinion - not yours that is)

Mary_Hartnell

grogdog wrote: »

your only options are.

get a better paid job.
find another partner to join you on the mortgage.

you ex girlfriend is owed nothing anyway as you are in negative equity at the minute.

Get a lodger?

Your girlfriend is still liable for all of the debt ("jointly and severally"?). I am at a loss to know why she thinks she can simply walk away?

You have still got a relationship!

Perhaps there is a double bankruptcy option?
That would be two years of "living death" I believe.

Perhaps you both have richer and wiser relatives to help out?

Mary.

Sorry to sound brutal, especially to a first time poster; at least you are facing up to the situation. There will be other people on here, in a similar situation if you search the site. Possibly by using google:
eg
“Relationship breakdown” site:forums.moneysavingexpert.com

dunga105

homer_j wrote: »

You could apply for something called a transfer of equity. This is the process where you add/remove parties on a mortgage.

These will only be granted if you can support the mortgage on your own (in the lenders opinion - not yours that is)

I can afford the repayments, but the mortgage company probably wouldn't see it that way though. So I will probably have to sell the house at a massive loss in a couple of years time then?

homer_j_3

You could look to increase your income in that time which may allow you to remortgage the secured part into your own name and you and your other half simply get a personal loan for 50% of the unsecured bit each and take responsibility for that.

How much did you borrow on the unsecured bit?
How much was the mortgage bit?
What is your income?

dunga105

homer_j wrote: »

You could look to increase your income in that time which may allow you to remortgage the secured part into your own name and you and your other half simply get a personal loan for 50% of the unsecured bit each and take responsibility for that.

How much did you borrow on the unsecured bit?
How much was the mortgage bit?
What is your income?

The unsecured bit is 38000
The Secured is 114000
Income is 25000

Ian_Griffiths_Halifax

dunga105 wrote: »

The unsecured bit is 38000
The Secured is 114000
Income is 25000

The unsecured bit of the Together Mortgage can't be £38000 as they only ever lent a maximum of £30,000 on that unsecured loan. Might you have a second unsecured loan with Northern Rock?

homer_j_3

The unsecured bit looks wrong as the maximum was 30% of property price or 30k, whichever the lower - could it be 28k?

If it was over 25k then your paperwork may be worth looking at as I understand from some of my paperwork that I have for clients looks wrong and therefore may be unenforceable as a contract. If this is the case then you may get a bit of help from this.

From the secured point, you should be able to mortgage that amount providing the property holds enough equity and you can demonstrate a good credit history and affordability. The lenders may be limited though and I speak in todays world, not the one that may or may not be when you come out of your deal.

silvercar

Half the negative equity belongs to her, in the same way that half the profits would belong to her if there was a profit.

Walking away is not an option for her until she has sorted this out. It is very nice of you to offer to take the mortgage on your own, but no reason why you should.

Gorgeous_George

Spot on silvercar.

OP, I suggest pricing up the option of having the house sold, paying the redemption penalty and any other costs. Subtract this sum from the total owed and share it 50/50. If your estimates are righ, she needs to pay £12,250 to walk away and have her name removed from the mortgage.

People need to realise that buying a house with a joint mortgage is a greater commitment than marriage. That includes the girlfriends.

GG