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will I owe money to the morgage company?

(11 Posts)
fairy15 Mon 06-Oct-08 21:46:16

ok I'm leaving dp. we have a house together but what with the housing market the way it is the house is going to be worth at least 10k less then we paid for it. So what happens as it will have to be sold. Will I owe money on a house I will no longer own? Thanx

2cats2many Mon 06-Oct-08 21:47:41

Depends on how much you borrowed. If you borrowed 100% of its value, then yes. But if you have some equity in the house, the £10k shortfall will come out of that.

ib Mon 06-Oct-08 21:49:43

Yes, normally you would have to repay the money they lent you, regardless of whether the house you bought with it is worth more or less.

Did you have a 100% mortgage?

Piffle Mon 06-Oct-08 21:52:58

are you on the deeds etc?
But yes depends on your mortgage
Some lenders will convert smaller arrears/shortfalls into front loaded loans but depends on credit rating and ability to pay.

somersetmum Mon 06-Oct-08 21:55:05

You have to pay back the full value of your mortgage. The money will be due the day the house is sold.

You will no be allowed to continue making monthly payments against the £10k that's outstanding, unless you transfer the debt to another property and the mortgage company have approved the transfer.

fairy15 Mon 06-Oct-08 21:59:31

yes I'm on the deeds. Can't remember if it's 100% morgage or not. We had another house & sold it for more then we brought it for but then brought a house which was worth more money. Actually thinking back I think it is 100% morgage. Am I doomed?!

CarGirl Mon 06-Oct-08 22:04:39

Presumably you can negotiate a way to pay the money back over a loooooooooooooong time. I know people who did this in the previous market crash. The sold at a loss moved into rented (because they had children) and got the interest capped and had to repay x amount per month for the next 5 years or something.

Just move out and worry about sorting this out later.

Is there a possibility your Ex could afford to take on the mortgage on his own with a lodger (or 2)

Piffle Mon 06-Oct-08 22:08:50

you made profit on other proprties then invested that in your new property?
That's your deposit
You need to find out

DraculaNeedsArteries Mon 06-Oct-08 22:13:18

You need to know how much your house is likely to sell for.

And how much is outstanding ont eh Mortgage.

You sell the house and pay of the mortgage (between you).

If amount outstanding is more than sale price then you will have to pay cash so that mortgage lender gets the whole mortgage back.

If the amount outstaning is less than the sale value. You pay off mortgage lender from teh proceeds of the sale and then divide the remaining between the 2 of you to do with as you wish.

Of course there will be a few fees and stuff as well but that is essentially it.

fairy15 Mon 06-Oct-08 22:13:29

have thought about saying to him to get a mate or 2 then sell at a later date but his not going to be in the best mood when I go.
Yes I think we may have put 15k towards our current house from the other one.

DraculaNeedsArteries Mon 06-Oct-08 22:21:27

It doesn't matter how much you put towards it orginally, or whether mortgage was 100% or not. What matters is the current property value (or in reality sale price) and the amout of outstanding mortgage.

The difference between the 2 is what will tell you your answer.

You should get an annual mortgage statement. This should give you an idea of the amount outstanding. I assume it is a repayment mortgage rather than an endowment? Otherwise there are additional complexities.

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