Viewing 12 posts - 1 through 12 (of 12 total)
  • Divorce and Re-Mortgage/Loan advice needed
  • willard
    Full Member

    So, long story short, the wife and I are getting divorced. It’s all going through right now and I hope/expect the Decree Nisi to be coming in the post any day now. We’ve also agreed financial settlement that will involve me getting her share of the house and her getting, let’s be frank, a shit-tonne of money.

    Most of the cash I can get from what savings I have and the money my father left me in his will, but I am 90k short and will need to get this somehow so that I can get her out of my life.

    My plan was to remortgage the house for the extra money and then pay her off, but the current mortgage has six months to go and their offer of taking out an additional product for the 90k would see me paying an extra £400 a month for the two year fixed period and will mean I am out of step for the remortgage of the main amount.

    The alternative is to pay a 5k early repayment fee and re-mortgage with a different company at a lower interest rate, saving about £200 a month (if not more) and then having a single mortgage. The deals I see with low interest rates do have a set up fee of about 1k, so the saving in money over a two year fixed period is effectively £0.

    I did have a thought that I might be able to borrow 90k from the bank for six months, but it seems that banks don’t generally lend that sort of money; 25k max.

    Anyway, what’s the best option? Take an early hit knowing that I can overpay the additional money for the fixed period of the re-mortgage, or stay with the same people and risk one product making things more expensive on a variable rate for six months just to save 5k?

    jambalaya
    Free Member

    The cost of the remortgage should be included in the settlement – so if its £5k your wife should pay half, ie get a bit less cash. Thinkmof it like this if you where selling the house you’d each pay half the estate agents fee wouldn’t you ? Now going back to her now might be tricky but imho thats what you should do, failing that you’ll have to take it on he chin and do your own calculations as to risk, imo mortgage rates are unlikely to go up in next year post Referendum result

    Thought #2 wouod your wife accept X now and the other £90k in 6 months ? Decree Absolute can be granted even if the money hasn’t been handed over yet, thats what we did my ex got some cash more than a year later and we didn’t sell the house till nearly 6 minths after – we had agreed the split and thats what the court wants to know.

    dannybgoode
    Full Member

    Tell her in light of Brexit that divorce settlements have plummeted and you’re renegotiating.

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    jekkyl
    Full Member

    Stay with your current lender and have 2 sub accounts that end at different times, it’s not uncommon and I’ll bet your current lenders deals aren’t all that bad.

    avdave2
    Full Member

    Most of the cash I can get from what savings I have and the money my father left me in his will,

    Is she not also claiming half of that! If not I’d be very thankful but still concerned she might change her mind.
    I’m in a position at the moment where I could leave and buy somewhere new with a new mortgage and a deposit a family member will give me but I daren’t buy anywhere until everything is finalised just in case she decides that is then a joint asset and claims half of it. The family house will remain with her with no mortgage until the kids reach 19 or she and her new partner put up the money to buy me out. Hopefully you are not in a position where she will make a claim but sadly some people you discover even after many years together are not particularly principled.

    willard
    Full Member

    Is she not also claiming half of that! If not I’d be very thankful but still concerned she might change her mind.

    After four mediation sessions, we agreed that she would not claim for part of the house he left me and my sisters, but I have to use his inheritance to pay her off. Her eyes lit up during the disclosure sessions when she found out how much the inheritance was… She’s getting her pound of flesh, trust me.

    Current lender’s deal is 3.69% for the main mortgage and 2.25% for the extra product. All told about £1345 a month combined. One of the other offers is 1.34% with a repayment of £1110 or so fixed for two years.

    I know what you mean about renegotiating, but it took a lot of effort to get this one and I wanted the house, so I think I will have to suck up the fees if I do want to get the money that way and not by selling.

    jambalaya
    Free Member

    The question to ask yourself is the £5k worth paying for peace of mind – I think you’ve already told us the answer. Good luck I’ve been through it and its a nightmare, from what you’ve said about mediation you’ve got out reasonably smoothly so well done for that.

    Del
    Full Member

    for your 90k why not just go on the SV rate until your fixed term on the main one is done, then consolidate it?

    jambalaya
    Free Member

    OP the bank will negotiate the fee especially if they think you might remortgage away. Banks are struggling to find good assets and you have a strong change of circumstances argument. They should be willing to accept loss of extra interest only if you are getting a new larger loan with them

    willard
    Full Member

    Jamba, tried that with them, but they are pretty inflexible on that score, claiming that they can’t remortgage me earlier than my term allows and that twas the only way to get the extra money.

    Del, the main mortgage only has 6 months of fixed term left, to I’d have to remortgage that about four to six months before the other one finished. See comment above about flexibility.

    Current place was pretty cheap, but not as cheap as HSBC are offering me now.

    Brainflex
    Full Member

    see an independent financial adviser, quite often they will negotiate deals that you can’t.

    grantway
    Free Member

    Very sorry to hear but glad you have good mind set. Go with the lesser intrest rate or less Apr as possible
    IE remortgage or a simple loan. Also if you remortgage you will have to pay Convayence fees and land registry
    I recently remortgaged not for the same reasons but that cost me £12,000 so do your home work.

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