House buying/mortgage options

[sanityisamyth]

Husband and I are divorcing. We jointly own this house, bought on 100% mortgage 9 years ago for £125k.

House recently valued for £110k on paper but was told by estate agent £120-130k. There's £91k outstanding on mortgage.

Husband has destroyed my credit rating by taking out loans/credit cards in my name. He also defaulted on a lot of payday loans in his name.

Looking increasingly likely that I'm going to have to sell this house to sever ties with him.

What are my options? I don't really want to rent.

Unfortunately your options are extremely limited and its very likely that renting is the only choice, at least in the short term.

If your house valued at '£110k on paper' then it's unlikely to fetch £120-£130k- that's just estate agents twaddle.

If the buyer needs a mortgage and therefore the house needs valuing it is likely to value at the lower price limiting what you'll get for it.

If your credit rating is trashed only time will sort that out. Credit records last 6 years so you'd needs to sort all the debts in your name and then the 6 years starts from then.

Some lenders are more tolerant of issues than others so you might not need to wait the full six years.

Is the equity in the house after the selling costs going to be enough to clear all the debts in your name?

If so you could do that then financially disassociate yourself from him and your credit rating will slowly mend over time.

You can still get a mortgage with a bad credit score. Contact countrywide mortgages.

Or

Go to your local council and tell them divorce forces the sale of your home and you and your son need somewhere

Or contact a private letting agent once your house is sold.

As long as you can pay the rent and have a job plenty landlords will accept you

Thanks to you both :)

Renting is likely to cost more than my mortgage at the moment but it's getting complicated. Thanks for those replies - that's helped a lot.

You can still get a mortgage with a bad credit score. Contact countrywide mortgages.

That's very unlikely to be possible in this situation- obviously we don't have the full details but very recent debts/ defaults on the OP's file won't just be ignored.

You can get a mortgage with some elements of bad credit but it is the extent of it which is relevant.

That and the fact there's unlikley to be any equity left over for a deposit.

Lots of people could afford to service a mortgage more easily than pay rent but unfortunately the computer says No.

Once your mortgage is discharged, if you have no other joint debt with your ex you can write to credit reference agencies and have the association with him removed from your credit file. This will remove any association to defaults in his name. How much debt do you have in your name?