Fixed mortgage issue

Manners14 · 24 Jul 2017 at 18:58

Short version of the issue.

My girlfriend and I bought a house in December 2016. This was our first house and we entered into a 2 year fixed mortgage.
We paid a third and two thirds of the deposit respectively, and have made the same ratio of payment on the mortgage every month since living there. We signed an 'unequal share' contract when moving in together.

We have recently broken up and have moved into seperate rooms, she will be moving out as she can't afford to live here on her own, I'm going to stay in the house and take over the payments.

I realise that if we re-mortgage now then we get a massive charge to do so.
I have enough cash to pay her deposit back to her. But I'm not sure what to do about any other money she may be owed, or what to do with the mortgage itself. Whether I have to change the names on it, or if it's best to hold out until the 2 years is up. I'm worried about going to a mortgage advisor in case they mis-advise me for their own gain.
We are fairly civil at the moment, and I wouldn't want to do her out of anything she is owed, but if anyone has any advice or experience with what to do, it would be greatly appreciated as the situation needs to be resolved now.

Cheers.

Usel · 24 Jul 2017 at 19:12

Can't really advise you but if you want to speak to a decent mortgage advisor then try speaking to this guy.

http://www.premierfinancialgroup.co.uk/ian-babb.html

Helped me last year to buy a house and he was brilliant.

Psycho Sonny · 24 Jul 2017 at 19:14

Massive charge?

It will be 2% at best.

So £8k on a £400k outstanding mortgage balance

Usel · 24 Jul 2017 at 19:18

Psycho Sonny said:
Massive charge?

It will be 2% at best.

So £8k on a £400k outstanding mortgage balance

Well that will be a massive charge wont it? To lose 8k in a year would be massive to me.

My fees would be 7k on a 230k mortgage.

Manners14 · 24 Jul 2017 at 19:21

Yeah, it's a 200k house and I don't have that much lying around, as I'd need to give her money back too wouldn't I...

Usel · 24 Jul 2017 at 19:23

Sometimes you can avoid the fees if you take out another mortgage with the same lender.

Vonhelmet · 24 Jul 2017 at 19:23

Psycho Sonny said:
Massive charge?

It will be 2% at best.

So £8k on a £400k outstanding mortgage balance

£8k not massive? I want your problems.

Psycho Sonny · 24 Jul 2017 at 19:27

Vonhelmet said:
£8k not massive? I want your problems.

Well you would have a £400k mortgage on a £500k+ house.

If you can drop half a million plus on a house you should have at least £20k in the bank.

Psycho Sonny · 24 Jul 2017 at 19:28

Usel said:
Well that will be a massive charge wont it? To lose 8k in a year would be massive to me.

My fees would be 7k on a 230k mortgage.

Not as big as a divorce so count yourself lucky.

You can remortgage and free up equity. Use that equity to pay her back as well as the charges.

Maybe you should have thought this through before buying a house together if you couldn't afford to buy the other one out.

Buy a smaller home and test the waters

VincentHanna · 24 Jul 2017 at 19:31

You split up within 7 months of getting a house? Ouch.

Has the house risen in value since then?

Psycho Sonny · 24 Jul 2017 at 19:33

VincentHanna said:
You split up within 7 months of getting a house? Ouch.

Has the house risen in value since then?

My thoughts as well.

Question to op did you both rent together before buying? Or jump straight into buying together

Usel · 24 Jul 2017 at 20:06

Psycho Sonny said:
Not as big as a divorce so count yourself lucky.

Been divorced and lost 5k for terminating a mortgage early. Still consider 8k and 5k a massive charge.

TJM · 24 Jul 2017 at 20:19

Psycho Sonny said:
Question to op did you both rent together before buying? Or jump straight into buying together

I'm not sure this line of questioning is helpful at this point!

Hades · 24 Jul 2017 at 20:26

Why's it assumed you'll take 100% of the hit for the early payment penalty? It sounds like 33% of the penalty should be paid by her if she wants to move out now.

Psycho Sonny · 24 Jul 2017 at 20:39

Hades said:
Why's it assumed you'll take 100% of the hit for the early payment penalty? It sounds like 33% of the penalty should be paid by her if she wants to move out now.

She should also be reasonable about getting her deposit and equity back. Possibly over 2 years.

robj20 · 25 Jul 2017 at 07:28

Really does puzzle me people jumping in so quickly. Unequal share contract, just shows you had doubts. My now wife put 90% of the deposit down and now pays 100% of the mortgage no contracts in sight.

Anyway, i would expect the same unequal split of the burden so she should take the hit as well as you on any penalties, also shouldn't expect it as a lump sum, regular payments over a set period.

Usel · 25 Jul 2017 at 07:56

Psycho Sonny said:
She should also be reasonable about getting her deposit and equity back. Possibly over 2 years.

robj20 said:
also shouldn't expect it as a lump sum, regular payments over a set period.

Can I borrow a copy of the rule book you have both read please?

Usel · 25 Jul 2017 at 07:58

robj20 said:
My now wife put 90% of the deposit down and now pays 100% of the mortgage no contracts in sight.

She's your wife. What good would any contract have. That's why you dont have one.

robj20 · 25 Jul 2017 at 08:09

Usel said:
She's your wife. What good would any contract have. That's why you dont have one.

Read my post properly next time. NOW wife. We weren't married at the time nor had any plans to be.

robj20 · 25 Jul 2017 at 08:10

Usel said:
Can I borrow a copy of the rule book you have both read please?

Its the same with owing any money to someone if you offer a fair repayment plan unless it puts the other in hardship it should be accepted.