Ex-partner is wanting to sell the house.

touch · 15 Jan 2019 at 13:12

dowie said:
what happens if interest rates rise a bit?

This.
The bank's affordability calculator doesn't just check if you can afford the payments at the current rate. It needs to take into account what happens if the rates increase. Showing that you can afford rent/mortgage at the current rate wont make any difference.
Could he still pay the mortgage if the monthly payment went up a couple of hundred?

FortuitousFluke · 15 Jan 2019 at 13:17

touch said:
This.
The bank's affordability calculator doesn't just check if you can afford the payments at the current rate. It needs to take into account what happens if the rates increase. Showing that you can afford rent/mortgage at the current rate wont make any difference.
Could he still pay the mortgage if the monthly payment went up a couple of hundred?

I suppose the issue people are getting at is that this is already a factor. If anything the risk reduces under a repayment mortgage because every payment he makes reduces the impact of interest rises. There are only really 3 factors that the bank would consider as a positive against the repayment option and they are:

a) This guy is a bad risk anyway, much better to get him out of the picture either by him choosing to sell and rent instead or by the interest only mortgage ending and us taking the house
b) Under the current arrangement we effectively have the ex wife on the hook for the mortgage should he fail to pay
c) Extending our financial relationship with this chap for another 15 years is undesirable so we'd rather have him on the interest only mortgage as we make more money in the short term and divest the risk quicker.

In terms of affordability it's not really an argument, but I suspect the bank are held prisoner by legislation on this one.

Freakbro said:
Here's something about it, seems it's about making rental payments appear on your credit file/score

https://www.moneysavingexpert.com/n...ar-in-experian-credit-reports-for-first-time/

Though it seems it's just Experian and you have to sign up for it. Would be much better to be universal since I can imagine most people wouldn't be aware of this.

Possibly a positive move but I could see it really scuppering people who have experienced short term issues. I suppose it's a balancing act though between banks and landlords being able to assess risk and good payers being accepted for rentals and mortgages.

Pudney · 15 Jan 2019 at 13:17

touch said:
This.
The bank's affordability calculator doesn't just check if you can afford the payments at the current rate. It needs to take into account what happens if the rates increase. Showing that you can afford rent/mortgage at the current rate wont make any difference.
Could he still pay the mortgage if the monthly payment went up a couple of hundred?

Depends if he can get a better interest only deal that is a couple of hundred cheaper

Vague searches I just did suggest he probably could if just based on current payments and no other affordability check.

touch · 15 Jan 2019 at 13:26

Pudney said:
Vague searches I just did suggest he probably could if just based on current payments and no other affordability check.

No doubt there's better rates available if you ignore the eligibility check. That's because he'll be considered a higher risk and the rates he is offered reflect that risk.

.Lethal · 15 Jan 2019 at 13:36

cheesyboy said:
£550 for interest only. £1,000+ is the repayment figure

ColdAsIce said:
It's not. I believe he said £550 interest only and £1000 to start paying towards the actual mortgage.

Ah OK, I misunderstood an earlier post.

If the ex being tied to that house prevents her from being able to buy her own home then this indeed is going to get very messy.

Pudney · 15 Jan 2019 at 13:39

touch said:
No doubt there's better rates available if you ignore the eligibility check. That's because he'll be considered a higher risk and the rates he is offered reflect that risk.

The search was with a 95% LTV interest only mortgage. Probably the best estimate that can be done without having new rules actually in place (and products available under those new rules).

h4rm0ny · 15 Jan 2019 at 13:49

arknor said:
raffle the house off put in the tc that if not enough tickets are sold the winner only gets a small cash prize

Novel. I like it. A little viral marketing and this could work.

h4rm0ny · 15 Jan 2019 at 13:55

Is there any family that can get involved to help out? It seems the OP is in a tenable situation (just about), but lack the extra capacity to get out and shift it to a better situation. If they could get some assistance - just enough to enable them to re-mortgage, they could buy their ex-out and also get back into a repayment mortgage. It's a bit more debt to their family (assuming they want it repaid) but it seems like it might be the only way. They don't need someone to pay off the whole amount, they just need assistance to change their arrangement.

Freakbro · 15 Jan 2019 at 14:04

h4rm0ny said:
Novel. I like it. A little viral marketing and this could work.

It's already quite a thing, especially with multi-million pound homes that aren't selling

https://millionairemansion.co.uk/

https://www.windancershillhouse.com/

https://houseprizecompetition.com/

h4rm0ny · 15 Jan 2019 at 14:11

Freakbro said:
It's already quite a thing, especially with multi-million pound homes that aren't selling

https://millionairemansion.co.uk/

https://www.windancershillhouse.com/

https://houseprizecompetition.com/

Huh. Nice!

dowie · 15 Jan 2019 at 14:12

Yup and it generally doesn't work - the competitions get extended and then tend to go to a cash draw with the organiser pocketing up to 25%....

I suspect there wouldn't be much in the way of press interest for a cheap house - someone did attempt it with a new build flat in London, but they at least had some nice photos of a clean/tidy interior etc.. I suspect that being on low income + having kids perhaps doesn't make for good marketing photos either.

Droolinggimp · 15 Jan 2019 at 14:29

Still not had chance to Reply to lots of posts but to let you know. My wife works and goes to college. The ex had an affair and left me to deal with everything. I have repeatably asked to sell the house but no is the answer. She knows it's interest only. I have been wanting to leave and sell the house for many years.

I'll get back to this thread tomorrow as I'm off work then.

matt100 · 15 Jan 2019 at 14:33

There's a lot of speculation in here.. have a few facts.

1) if one of you wants something the other doesn't someone will need a court order
2) the starting point on that is mediation whether you need it or want it or not, you have to to try and come to an amicable solution without wasting the court's time
3) then you either agree and put that in front of a judge to become a financial order or you don't and you hand it over to the judge to decide what happens which also then becomes a financial order

All the rest is sort of noise.. very important noise but noise non the less.

I assume one of the owners would like to move on and not be attached to a house they no longer live in etc etc.. totally rational but not going to be resolved without a lot of legal work unless you can come to a conclusion amicably and even then it'll need ratifying so it's no longer open to dispute down the line.

matt100 · 15 Jan 2019 at 14:34

Droolinggimp said:
Still not had chance to Reply to lots of posts but to let you know. My wife works and goes to college. The ex had an affair and left me to deal with everything. I have repeatably asked to sell the house but no is the answer. She knows it's interest only. I have been wanting to leave and sell the house for many years.

I'll get back to this thread tomorrow as I'm off work then.

The above leads to the below. It's the only way forwards legally if you're not going to agree. It forces a resolution regardless of whether both parties are being reasonable or even engaging at all.

matt100 said:
There's a lot of speculation in here.. have a few facts.

1) if one of you wants something the other doesn't someone will need a court order
2) the starting point on that is mediation whether you need it or want it or not, you have to to try and come to an amicable solution without wasting the court's time
3) then you either agree and put that in front of a judge to become a financial order or you don't and you hand it over to the judge to decide what happens which also then becomes a financial order

All the rest is sort of noise.. very important noise but noise non the less.

I assume one of the owners would like to move on and not be attached to a house they no longer live in etc etc.. totally rational but not going to be resolved without a lot of legal work unless you can come to a conclusion amicably and even then it'll need ratifying so it's no longer open to dispute down the line.

The_Abyss · 15 Jan 2019 at 14:37

Droolinggimp said:
Still not had chance to Reply to lots of posts but to let you know. My wife works and goes to college. The ex had an affair and left me to deal with everything. I have repeatably asked to sell the house but no is the answer. She knows it's interest only. I have been wanting to leave and sell the house for many years.

I'll get back to this thread tomorrow as I'm off work then.

So now she wants to sell the house and you want to sell the house - sell the house, split the resulting equity or debt, and both get on with separate lives!

touch · 15 Jan 2019 at 14:37

Droolinggimp said:
I have repeatably asked to sell the house but no is the answer. She knows it's interest only. I have been wanting to leave and sell the house for many years.

So, now you both want to sell the house?
What's the problem?

dowie · 15 Jan 2019 at 14:39

matt100 said:
There's a lot of speculation in here.. have a few facts.

1) if one of you wants something the other doesn't someone will need a court order
2) the starting point on that is mediation whether you need it or want it or not, you have to to try and come to an amicable solution without wasting the court's time
3) then you either agree and put that in front of a judge to become a financial order or you don't and you hand it over to the judge to decide what happens which also then becomes a financial order

Are you assuming the OP was married to this "ex" or in a civil partnership? I'm not sure that is the case.

OP could just buy his ex's share if they can agree on that, agree on a price AFAIK

dowie · 15 Jan 2019 at 14:42

Droolinggimp said:
Still not had chance to Reply to lots of posts but to let you know. My wife works and goes to college. The ex had an affair and left me to deal with everything. I have repeatably asked to sell the house but no is the answer. She knows it's interest only. I have been wanting to leave and sell the house for many years.

I'll get back to this thread tomorrow as I'm off work then.

I think you're just adding to confusion here - presumably you have previously wanted to sell the house but now don't? Otherwise where is the issue?

touch · 15 Jan 2019 at 14:43

dowie said:
OP could just buy his ex's share if they can agree on that, agree on a price AFAIK

That's not an option. It's not the couple of thousand equity in the house that he'd need to pay her to buy her out, it's that plus he'd need to buy her £70k debt too.
Nobody will lend him enough money to do that.

Droolinggimp · 15 Jan 2019 at 14:43

touch said:
So, now you both want to sell the house?
What's the problem?

We as in me and my wife can't currently afford to sell it. Ifvut is in neg equity we won't have anything to put down on rent deposit that sort of thing if we sell house. We may be able to save a liitke each month but I'm talking 50 quid if that. We have no family to get help from either.