# need advice - may lose home



## Gary 23 (15 Nov 2008)

Hi 
I was wondering if anyone can help me with a query.
I bought a house about a year and half/two years ago with my girlfriend.
We have since broke up and i want to take over the property entirely on my own.

She has been paying a loan that is in both of our names since november 07 and i have paid the entire mortgage since we first moved in together since february 07.

Since we broke up we both kept paying the same way even though the mortgage was a much larger monthly repayment i didn't make a fuss and i was still living in the house.

Now i have found out that she has missed last months loan repayment and may miss this months as well. if this happens we will both have a mark on our credit record. 

My salary is 30000 pa gross.
The mortgage  is currently 218000 and is fixed interest only for another year. After tax relief i pay 725 net a month. The loan is for 18000 and is 432 a month.

I am pleading with anyone out there to give me some advice as to how i can get the house and/or get out of this position without having the rest of my life ruined with a bad credit record  as a result of my ex not paying her smaller share of our debts.

Any advice appreciated
Regards
Gary


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## cancan (16 Nov 2008)

I think there are a few questions you need to answer, along with a more detailed outline of your general finances using the standard template.
On top of that, the following would be useful.

What was the understanding of who would pay what and for how long? Was there an agreement verbal or otherwise, or was it just some adhoc arrangement since the breakup?
Is there a reason for her stopping to pay?

I think at the end of the day, you are going to have some comunication with her in order to sort out an situation that you are both liable for, and come to some arrangement for the future.
What is the house worth (take a very pessimistic figure, as the market is very pessimistic now). Are you in a negative equity situation?

If so, can you rent out a room in the house?


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## Raskolnikov (17 Nov 2008)

I think you need to give us more details. Does your ex want to retain half the ownership in the house? If so, she should be paying half the mortgage. What about this personal loan, what was it for and who has the asset (assuming you have something that's still worth something).
Is the personal loan in her name, or your name? If it's in her name only, you won't have to worry about getting a black mark on your credit rating.


cancan said:


> If so, can you rent out a room in the house?


Good suggestion.

A €218,000 mortgage sounds like far too much for you to handle on a €30k gross salary. My first impression is that you should simply sell up.


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## Gary 23 (17 Nov 2008)

Hi I aprreciate the responses. i apologise for not being completely clear. here are answers to some of the queries.
My ex does not want to retain ownership of the house and i have that in writing from her.
The personal loan is a bit more complicated but here goes.
We originaly got a 25000 loan for the deposit on the house. My ex at the time also had a personal loan of 12000. we bought the house off the plans and waited for a bout a year to move in. in this time we managed to bring both loans collectively to around 22000. We both then applied for a loan with halifax for 22000 and she repaid that loan while i repaid the mortgage every month. I didnt mind this situation as i made slightly more than her. anyway when we broke up we just kep both repaying the same repayments every month. It was just an arrangement until around 6 months later when i would be made permanent in my job and could reapply for the transfer of equity.
I know the house is worth less than paid for by a large amount possibly 40000+. Its not as simple as just sell the house as the market in this area is terrible and the rental market is not great either. 
If i do sell up i will have stamp duty fees and reduced tax relief on my next mortgage and would lose 30000 or more. 
She has not been helpful with the situation and i have resorted to dealing with her father throughout. (she is 24 before anyone asks!! i know i know!) She did not repy last months payment of the loan because she did not have the money. i have been extremely reasonable up to this point but do not have many answers as to what i can do next.
Any help is much appreciated.
Regards
Gary


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## cancan (17 Nov 2008)

Since the loan is money owed, and selling the house is money owed, you're going to have to split either one of the other.

Offer her/her father one or the other.
Either they take ownership of the house which is 40K down, or they take responsibility for the loan, which is down to a lesser degree.

So one of these two needs to be out of your name asap.

My guess is they won't want the house.

Either way, you could be in a bit of a mess coming out of this.

You should contact the bank to let them know what is going on, if payments are not going through. Possibly a payment break until you figure this out.


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