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House in negative equity and me and husband have split up but are still living together. What do I do?

(11 Posts)
shatteredmumsrus Thu 23-Jul-09 21:55:53

I cannot bear to live there anymore. House is valued at 134K and mortgage owed is 137K.Therefore Im in negative equity. There is a 5K penalty as it is a fixed rate.Then there are solicitors rates. What do I do? We need to sell as we are argung all the time and it is self destroying.All mortgage advisors have said Im stuffed and will be in debt if i sell. I done wanna stay there until the fixed rate has ended. What will happen if I just leave?Help???

PestoSchoolsOutMonster Thu 23-Jul-09 21:59:17

Rent it out, your tenants can pay the mortgage on it for you. You and your DH move out into separate properties (rent until you're ready to buy again)>

BigGitDad Thu 23-Jul-09 22:02:09

One choice is for one of you to take on the whole mortgage if your income criteria is acceptable to the mortgage company. The other would be to throw the keys to the mortgage company and give the house to them, but be prepared that they may come to you for the loss of the house. Did you take out a mortgage indeminity insurance that was added to the mortgage when you took the mortgage out? That is meant to cover that kind of thing but fewer lenders were charging those guarantees as time went by.

BigGitDad Thu 23-Jul-09 22:02:43

Very good idea pesto.

shatteredmumsrus Thu 23-Jul-09 22:04:24

Thanks both, really good ideas keep em coming.....

popcorn123 Thu 23-Jul-09 22:04:27

Have no advice as in a similar position so we see if you get any good advice.
I moved out of our family home 1 year ago and live in rented accomodation. exDH lives in family home. He refuses to sell it - we will lose money or at very most break even. mortage outstanding is £240K we bought it 5 years ago for £285K. There are 5 houses in our street up for sale and haven't sold for over 1 year.
I had living in rented accomodation- he has all our furniture etc and I want to move on.
Don't know whether I should try and force sale. Money lving as we are is tight (mainly for me) as he won't pay any maintenence or any contribution towards the kids as he "pays the mortgage". Totally stuck in a rut.

Could you both cope if your ex moved out into a small place until the fixed rate period is over I wouldn't advise you to move out - I did as I couldn't live there any more but I know I will lose out badly financially when we get divorced.

shatteredmumsrus Thu 23-Jul-09 22:06:54

Mortgage is £855!!! I wouldnt get that if it was rented out - maybe £600???

PestoSchoolsOutMonster Thu 23-Jul-09 22:09:06

Shattered, get a lettings agent round to give you a quote of what they think you can let it out for. They will know the market, you might be surprised at what you can get.

nouveaupauvre Sat 01-Aug-09 22:32:14

nationwide is now doing a negative equity mortgage i think where you can borrow 125 percent (designed precisely for people in neg eq who have to escape). but it will no doubt be extortionate rates - better to rent if you can. not sure how big it is but usually get more from professional sharers (eg students) each with their own room than for a family

maggievirgo Wed 05-Aug-09 18:52:36

Sit tight and get a friend in to pay some of the mortgage for you. You've bought a house. Don't bail out now for 3k. The house will rise again.

If you haven't got a friend, get somebody from loot, a young person of 19 with a job would be looking for somewhere cheap and they'd be out nearly all the time.

Or, can you get foreign students in? depending on where you live? are there any language schools near you?

CarGirl Wed 05-Aug-09 18:55:56

Either you or your h stay there and rent out the other rooms.

How many beds has it got and how many dc & what ages are they?

You and your dc could share, or they could share etc.

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