Adge
Member
Registered: 28th Aug 04
Location: Lancashire
User status: Offline
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hi all!
basically heres the problem,
i bought a shared house with a matePaid £115,000 half each 3 years ago
he knows wants to move out coz his gf preg
problem is house price is now £102,000
Currently on a fixed 5year mortage at 6% intrest only with Northern Rock! its £604 a month
whats the best thing to do?just rent it out and hope can the mortage drops to meet the rental value when the fixed deal is up!
help plz
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Colin
Member
Registered: 4th Apr 02
User status: Offline
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Ooooh thats going to sting you. Loss on the value plus penalties for leaving the mortgage deal early!! 
Erm best thing to do would be to buy him out if you can afford to or get someone else to buy his share!!
Ive got 2 mates in a similar dilema, bought last August for 240k, one of them got offered a job in London & the house has been valued at 192k. Fuck that!!
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Adge
Member
Registered: 28th Aug 04
Location: Lancashire
User status: Offline
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iam tempted to buy him out and then get a lodger! thats just a option tho
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Ojc
Member
Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
User status: Offline
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Deffo buy him out.
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Rob_Quads
Member
Registered: 29th Mar 01
Location: southampton
User status: Offline
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If the house has dropped in value (and will probably go up) then buy him out of it.
I would try for.. He pays the 'costs' of the change and you pay him out at the current value i.e. he will make a loss but thats tough luck
Did you get any agreement written up when you agreed to the mortgage? Is he still a mate? He could string you with half the cost of breaking the mortgage etc which could mount up.
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whitter45
Member
Registered: 15th Nov 02
Location: Norton
User status: Offline
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is there anything to buy out from
Basically you owe more than its worth
So its his loss if he wants out
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Adge
Member
Registered: 28th Aug 04
Location: Lancashire
User status: Offline
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i cant afford to buy him out, dnt think i wud get the mortage on my own? if i remortaged it in my own name wud i still need a deposit? coz we got a 100% mortage
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Adge
Member
Registered: 28th Aug 04
Location: Lancashire
User status: Offline
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really dunno what to do! half tempted just to stick it on the rental market and hope the rent covers most of the mortage
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Rob_Quads
Member
Registered: 29th Mar 01
Location: southampton
User status: Offline
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If your not able to get a mortage to cover the whole thing then it looks like your going to be screwed and will have to sell up for less and owe a good few K to the bank
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Rob_Quads
Member
Registered: 29th Mar 01
Location: southampton
User status: Offline
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quote:
Originally posted by Adge
really dunno what to do! half tempted just to stick it on the rental market and hope the rent covers most of the mortage
To stick it on the rental market you will need to get permission from the mortgage company which will also cost more $$$
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Adge
Member
Registered: 28th Aug 04
Location: Lancashire
User status: Offline
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ok so it isnt as easy as just sticking on the rental market  thats bad news!
right once my 5 year fixed rate 100% mortage runs its course in 2 years, what happens?????
do i have to get another mortage or will my current company just sent me a renewal note just like car insurance??
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whitter45
Member
Registered: 15th Nov 02
Location: Norton
User status: Offline
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basically you will be asked to go and see them
You may get offered fixed rates depending on the price of your house or mortgage
if not you will fall onto the base rate
This happened to me this year
Came out of a fixed rate at 5%. Nationwide requires 20% deposit (owned assaet) and my outstandign mortage worked out at 83% hence they could not offer a fixed mortgage
Anyway this turned out to be better as I dropped onto the base rate mortgage at 2.5% (2% above base rate)
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Adge
Member
Registered: 28th Aug 04
Location: Lancashire
User status: Offline
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got my head is baffled! ill have go see a advisor
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