Housing decisions after Marriage failure
Discussion
Looking for a little bit of advice from the expansive PH knowledge bank.
I've just left my marriage after having been together for 12 years and unfortunately we just drifted apart. No animosity or issues, we still get on very well and hopefully it'll stay that way.
We bought our first and only home together at the back end of 2006. We bought it for £105k and, after a really pants financial advisor advised us to, we took out a 105% mortgage over 35 years. Then the financial meltdown happened and we were a little bit shafted. We're in a position now where we owe about £94k and the house has probably about £8k equity in it.
I'm keen for her to stay in the house, despite everything I still care a lot about what happens to her and I really don't want her ending up in a council flat in some god forsaken sink hole estate. She only earns £20k a year basic so would struggle to get her own mortgage to start afresh but she CAN afford to pay the mortgage and household bills to keep the house on. 1st question is, would it be as simple as transferring the deeds solely to her or is it much more complicated than that?
Now, I'm the one that's walked away, I intend to clear my debts by selling both cars (I pay for both) and then using the equity to buy something cheaper to run. I've also told her that I won't need to be bought out of the house as long as she doesn't lay any claim to my pension. No issues there. Basically she can keep the house and I start over. Now I'm currently living at my Parents' house which is, quite frankly, driving me mental. I need to be out of there asap. I've done the basic maths and once all of the bills are signed over to her I can put approximately £1200-£1300 to one side every time I get paid (4 weekly). But I really can't stay at my parents' for too long for the sake of my own sanity. The next question therefore is, do I buy or rent?
If I rent I can get a decent fully furnished apartment for around £700 pcm. This would enable me to slowly build up and store my own furniture in preparation for eventually buying my own place. Alternatively, do I take out a small loan to gather a suitable deposit quickly and buy my own place? (looking at a new build 3 bed detached with garage for £120k, with a 10% deposit so 90%LTV) This will mean repayments of £454 a month with the payments of the bank loan on top. Still cheaper than renting but no furniture in the short term, advantage being that it's my own place.
Finally, internet searches reveal that even with 90%LTV, some companies are willing to offer interest only at around £200 per month. Could I take this with a view to using the spare cash to furnish the house and then switch to repayment after the 2 year term is done?
I appreciate this is a lot of questioning for one thread but I'm a little bit thick when it comes to stuff like this.
Thanks
I've just left my marriage after having been together for 12 years and unfortunately we just drifted apart. No animosity or issues, we still get on very well and hopefully it'll stay that way.
We bought our first and only home together at the back end of 2006. We bought it for £105k and, after a really pants financial advisor advised us to, we took out a 105% mortgage over 35 years. Then the financial meltdown happened and we were a little bit shafted. We're in a position now where we owe about £94k and the house has probably about £8k equity in it.
I'm keen for her to stay in the house, despite everything I still care a lot about what happens to her and I really don't want her ending up in a council flat in some god forsaken sink hole estate. She only earns £20k a year basic so would struggle to get her own mortgage to start afresh but she CAN afford to pay the mortgage and household bills to keep the house on. 1st question is, would it be as simple as transferring the deeds solely to her or is it much more complicated than that?
Now, I'm the one that's walked away, I intend to clear my debts by selling both cars (I pay for both) and then using the equity to buy something cheaper to run. I've also told her that I won't need to be bought out of the house as long as she doesn't lay any claim to my pension. No issues there. Basically she can keep the house and I start over. Now I'm currently living at my Parents' house which is, quite frankly, driving me mental. I need to be out of there asap. I've done the basic maths and once all of the bills are signed over to her I can put approximately £1200-£1300 to one side every time I get paid (4 weekly). But I really can't stay at my parents' for too long for the sake of my own sanity. The next question therefore is, do I buy or rent?
If I rent I can get a decent fully furnished apartment for around £700 pcm. This would enable me to slowly build up and store my own furniture in preparation for eventually buying my own place. Alternatively, do I take out a small loan to gather a suitable deposit quickly and buy my own place? (looking at a new build 3 bed detached with garage for £120k, with a 10% deposit so 90%LTV) This will mean repayments of £454 a month with the payments of the bank loan on top. Still cheaper than renting but no furniture in the short term, advantage being that it's my own place.
Finally, internet searches reveal that even with 90%LTV, some companies are willing to offer interest only at around £200 per month. Could I take this with a view to using the spare cash to furnish the house and then switch to repayment after the 2 year term is done?
I appreciate this is a lot of questioning for one thread but I'm a little bit thick when it comes to stuff like this.
Thanks
Thanks for the reply. Just to clarify, I won't be paying anything towards the house. The bills etc, everything will be getting paid by her. I just need to know if it is as simple as signing over to her or of it's much more complicated, and some sound financial advice on my choices regarding repayment over interest only mortgages or renting.
bmwmike said:
Sorry to jump in but wtf? For ever or how does that work ?
[quote]a slice of your salary
[quote]a slice of your salary
Again thanks for the advice. Again, I should clarify, £20k is her basic. She usually clears £27k a year with overtime. I know that's not ideal but makes everything more affordable
As for the comment saying uspskill and earn more. Not exactly helpful input is it?
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