Mortgage/Buy Out Situation

rach83

I did post yesterday but I have been thinking a bit more about the situation and I would (if possible) like to buy my ex partner out.

Basically as I said yesterday I am locked into a 5 year fixed mortgage the redemption penalty would be in the region of about £3700 :eek: having thought about the situation at great length, our mortgage has a 22 year term - If I extend the mortgage to 35 years I would reduce the payments on the account by about £150 a month (I appreciate I would pay loads more interest over the term). I think I would also need to add one of my parents to the mortgage (they wouldn't contribute and I wouldn't need or want them to but from the banks prospective I guess they would be happier if one of them were on the mortgage or could at least be a guarantor for the time being). My property is pretty central to the town in which I live in so I would be prepared to sell my car which is worth about £4,000 and use that money to buy my partner out. Things would be tight for a few years but in the long run I definitely think it would pay off. Do you think this is viable?

Conrad

rach83 wrote:

I did post yesterday but I have been thinking a bit more about the situation and I would (if possible) like to buy my ex partner out.

Basically as I said yesterday I am locked into a 5 year fixed mortgage the redemption penalty would be in the region of about £3700 :eek: having thought about the situation at great length, our mortgage has a 22 year term - If I extend the mortgage to 35 years I would reduce the payments on the account by about £150 a month (I appreciate I would pay loads more interest over the term). I think I would also need to add one of my parents to the mortgage (they wouldn't contribute and I wouldn't need or want them to but from the banks prospective I guess they would be happier if one of them were on the mortgage or could at least be a guarantor for the time being). My property is pretty central to the town in which I live in so I would be prepared to sell my car which is worth about £4,000 and use that money to buy my partner out. Things would be tight for a few years but in the long run I definitely think it would pay off. Do you think this is viable?

I own a mortgage brokers but do not take any of the following as specific advice;

Adding a parent is not a particulary viable option. Lenders have to act responsibly so your parents retirement age and outgoings will be important.
Also lenders dont like adding a party who wont reside in the property as they feel that party is less inlcined to pay the mortgage as thier own 'roof' is not being put at risk. Another factor is that in Law it is difficult for lenders to enforce proceedings against guarantors for a variety of reasons.

Generally speaking it is usually easier for the applicant to proceed without involving guarantors. You indicate dont need your parents income.