#MortgageAdvice #FinancialPlanning #HomeOwnership #BreakupAdvice
Hey everyone! 🏡❤️ So, I recently broke up with my partner and now we’re trying to figure out what to do with our mortgage in England. Our house has appreciated in value, but we have to decide how to handle things moving forward. Here are my options:
1. Stay in the house and remortgage on my own, taking out £30k to buy out my partner.
2. Stay in the house and each take out separate £30k loans.
3. Let my partner buy me out and look for a new property on my own.
I earn £36k base plus a £2k bonus annually, so I need to make a financially sound decision. What do you think would be the best option for me? Any other suggestions or experiences to share? Let’s help each other out! 💬💡🤔
Personally, I’m leaning towards staying in the house and remortgaging on my own, but I’m open to hearing different perspectives. Let’s discuss! 🤝🏠💰
This isn’t really a financial question when it boils down to it.
Either you want to stay in the house or you don’t.
If you want to stay, then buy them out. If you want to go, let them buy you out or sell entirely.
Not a clue what you’re trying to get at with option 2. You can’t get separate mortgages on a jointly owned property, and each one would need to be a lot more than £30k if you did, it would be for your share of the remaining loan amount which is not £60k.
Perhaps get a professional to look at the figures rather than going off of what your partner is saying.
If you want to buy him out, ask a financial advisor on what’s the best method of obtaining that £30k.
Chances are, if you pass affordability checks.. a bank loan would be higher monthly cost over a shorter term of around 5 years.. accumulating less interest in total.
However a re-mortgage would be lower additional monthly cost with a higher amount of interest over the whole term.
Good luck, hope it goes smoothly 🙏
So I’ve recently done this- but it wasn’t quite 30k
I worked out how much had been paid off the mortgage (off the capital not including interest) then halved it.
I bought mine for 142k-
Our mortgage started at 106k
Leaving 36K deposit.
I had put slightly more money in as a deposit but we bought the house at joint tenants so it was 50/50 legally.
By the time we split I think only a couple grand had been paid off the mortgage capital. He wasn’t bothered about having half of that back and described it as rent mainly.
I went through all the finances and figured he’d put in 17k and he was happy with being paid that.
For my mortgage i had the option of taking over it and coming up with the 17k separately OR taking out the mortgage PLUS the 17k providing my income allowed it.
I just took over the mortgage and agreed with my ex I’d pay him 5k upfront then 1k a month for a year and it would be done. Got everything signed by solicitors.
If you have the spare income to repay a £30k loan and buy out your partner, that would probably be the better option. Selling the house and buying somewhere else will cost you thousands.
As the other replies have said, you can’t use a separate loan for a mortgage. You will need to get a new mortgage for the full amount – to settle the existing mortgage, whilst buying put your partner.
Can you tell us how much you earn?
That way we can ascertain whether you can get a new mortgage on your own.
Preferably also tell us how much you have outstanding on the existing mortgage.
I’m estimating you’ll need to earn ~£37,000 a year to afford this.
If you stay in the house you will have to take over the mortgage on your own. Can you afford to do that? To work out how much to buy the other out you need to see how much the house is worth (get 3 valuations) and take off the remaining mortgage. If you own the property 50/50 then half that. I personally would add this to the mortgage when you have to remortgage in your name only and if possible make some overpayments when possible.
No one can tell you if you should stay in the house. Do you even like it? Would you like to live there for the next 10 years? Are there other properties you can see yourself living in? What does your ex prefer? Will it be easier to sell the house and both of you have a clean break?
Generally speaking staying in your home is the best financial situation as all the other options involve spending money on lawyers, moving fees, etc. also it’s the least hassle option, if you can afford to and would be happy to, that would be the option I would always recommend.
How much do you earn? That will be the key component of this to see whether it’s affordable for you to stay.
Bear in mind valuations are higher right now, is it really worth 190k.
I would probably sell for a clean break.
It’s all irrelevant if you can’t remortgage. A loan will lower your mortgage amount and cost more so if you can’t remortgage you can’t get a loan anyway and keep the house.
Can you afford to remortgage? Otherwise all you can do is sell it and split the proceeds.
Clean break
OP the maths don’t quite add up. If the house is worth £190k now you’d both have 21k equity each + whatever deposit you put in and 4 years of monthly payments (less interest).
30-35k seems slightly low although I could be wrong.
If you wanted to stay there you could remortgage for the extra amount to buy him out. Otherwise sell the property and split the proceeds.
Best of luck
You need to understand if you can afford to pay the increased mortgage to buy your ex out.
To do this you’ll need to be able to get a mortgage for 100% of the existing mortgage owed, PLUS the 50% of equity.
If you can’t get a mortgage for that increased amount, you can’t buy him out. If he also can’t buy you out, because he can’t get a mortgage for the whole amount, then you’ll both need to sell and just walk away with a 50% split of whatever profit you make.