Help needed from a mortgage adviser

[FlorenceB19]

I need some urgent advice & guidance on how releasing equity or increasing mortgage to help buy a property post separation.

My Husband remained in our joint mortgage home with 2 of 3 adult children, I moved out 4 years ago into rented but it's too expensive to maintain.

We don't really want to sell the family home but ideally I need a secure home to live in.

Current mortgage £120 approx & home value approx £500k so there is plenty of equity, but how can we move forward to help find money to help me find a home for me & 1 adult DD. But keeping costs to a minimum.

We are 50yr & 53yr, due to chronic conditions I am only able to work part time so income £1300 a month, husband is in a partnership with his brother & he earns approx £700 a week.

I haven't contributed to the mortgage since our separation 4 yrs ago as I struggle financially covering rent & bills. So I don't have anything left from month to month. (We are amicable & agreed I wouldn't /couldn't continue to financially contribute)

Any general advice or suggestions would be really helpful especially as our fixed rate mortgage ends beginning of January (only weeks away!!) yikes!!

Have you worked out what you could afford to buy with 50% equity? Can your husband afford to buy you out?
(Both you get can get a ballpark figure for using online mortgage calculators).

You shouldn't need to contribute to mortgage and bills on the family home as well as the rental property. The fact you're paying rent and bills for 4 years shows affordability for a future mortgage.

Have a look at the Skipton Building Society who are doing mortgages based on rental payments.

You could get an equity release mortgage, or your ex-H could take out a second or larger mortgage on your property and give you the money. You'd then be paying either him, or the bank. I'm no expert in this though so you'll need someone else to jump in and offer the pros and cons of this.

But you'll need to sort out all of this legally with your ex, on the finances of all of this, just to protect yourself. He's been paying down more of the capital over the last 4 years, so are you sue you're still entitled to 50% equity - was this your agreement?

You also need to consider stamp duty, which has just gone up for second home. If you remain on the mortgage and deeds of your martial home, and you then buy another one, then the higher SDLT rate usually applies. It could be as much as £28k.

I'm a mortgage broker and your circumstances are the kind other brokers send to me. There are a few ways I could think of to make it work but I'd need to know a lot more than you are probably willing to post publicly.

If you are happy to DM me your email I can send you a quick email on how I might be able to help and what I'd need to know from you.

WOODSBROKER...

I am interested on receiving any advice at this stage but. How do I DM you?

Hi Florence, I've just messaged you directly with my email.

Hi WOODSBROKER... I've checked & no emails received! 🥴

Did you check your Mumsnet private message inbox?

At the top of the screen there’s a little person icon. Click on that to see your inbox.

I think I need a subscription to access emails! 🥴🤦🏽‍♀️ which I don't have the premium set up!

I'm still considering other options & I'm wondering if it's possible for 2 of our adult children that have remained living in the family home with their dad! (DS 26yr DD 22yr)

To take out a mortgage of £225k for a 2 bed new build/1st time buyers initially for me to live in & we divide the mortgage pmts 3 ways (approx £300 for them & I make up the difference £5-600 PCM neither pays their dad rent!! But both earn much more than me!ll)

hopefully they will both earn interest with the equity in the future whenever, they finally decide to leave home (they both have no intentions on leaving home) but if/as in when either one decides to move out, we can then sell both properties & split the equity within the family home????

Could this work? Or would there be any pitfalls that could potentially arise?

I haven't spoken to the children or ExH as of yet! as I'm just considering various options to keep a roof over all our heads without massive financial stresses!