Equity Release

[themalster]

Hi guys,

Currently my wife and I are both named on the mortgage.

We have split up and she wants her share of the equity in return for removing her name from the mortgage.

At present I pay the mortgage but if her name comes off the mortgage, Nationwide would reassess my mortgage and see that I wouldn't be able to afford the mortgage on my own despite me currently paying it on my own.

Is there anyway around this or does it look like i'd have to sell the house?

[boxtops]

You need to talk to Nationwide. When my ex and I split and my name came off the mortgage, OH was able to afford taking on the extra amount by extending the term of the mortgage (these days they extend well beyond the age of 65 if your future finances will permit). Look at your options, shop around.

[themalster]

Hi Boxtops,

Would my payments stay the same or would they increase dramatically?

We've had the house for coming up to 8 years and we initially took the mortgage out for 35 years.

[boxtops]

I can't speak about your own circumstances (and it depends on how much money you are talking about), but a little while back when I needed to restructure our finances, I moved my mortgage to another provider, extending the period by 7 years, and saved about £400 a month.

It's worth asking your bank as well as your current mortgage provider, if you have been with them for a while they may treat you as a loyal customer and have deals available.

[ladybirder]

What about taking in a lodger, some, if not all of the rent would then bump up your income and be taken into consideration? £80/week = £4k a year. You could always get rid later if you were unhappy with the arrangements.

[themalster]

Thanks Boxtops, I will look at other providers.

Ladybirder, I did think about it, however, as my house is only a 2 bedroom house, I want to keep the 2nd room for my son so when he stays with me it's his own room.