Houseowner
Registered User
- Messages
- 2
Hi,
I have a mortgage with another person (family member), and they have not worked in nearly a year (they are self employed and I'm PAYE) due to an accident.
We've been paying interest and an agreed amount of capital for about two years as the payments are too high otherwise.
It's now come to a point where the other person is now using savings they have (she's 60) to pay her half each month!!
If we were to rent our house we'd get less then what we need for the monthly repayments, have to pay tax on the income and lose our mortgage interest relief so be in a worse state them we are now. Obviously to sell is useless as we'd still owe more than half of the mortgage due to current market value.
A person I know has a mortgage, can't pay and has struck a deal with his bank in the form of selling the property and giving it to the bank and them writing off the negative equity, which will be well over half unless some miracle happens and they get more for it. Now what he argued was that at the time of the mortgage; he was just back from Australia (I.e. did not have a proper job) and the other person on the mortgage would be well into their retirement when the last years of the mortgage are to be paid.
Sorry this is a long spiel but basically I want to know what I should do, a friend advised stop paying the bank because at the moment I'm not a problem for them and they won't deal with me until I am... I don't want to be a bad creditor but at the same time I'm stuck in this mortgage and one half can't pay (I don't earn anywhere near enough to pay in in full either) their share. It's not an option to live their long term either...
I have a mortgage with another person (family member), and they have not worked in nearly a year (they are self employed and I'm PAYE) due to an accident.
We've been paying interest and an agreed amount of capital for about two years as the payments are too high otherwise.
It's now come to a point where the other person is now using savings they have (she's 60) to pay her half each month!!
If we were to rent our house we'd get less then what we need for the monthly repayments, have to pay tax on the income and lose our mortgage interest relief so be in a worse state them we are now. Obviously to sell is useless as we'd still owe more than half of the mortgage due to current market value.
A person I know has a mortgage, can't pay and has struck a deal with his bank in the form of selling the property and giving it to the bank and them writing off the negative equity, which will be well over half unless some miracle happens and they get more for it. Now what he argued was that at the time of the mortgage; he was just back from Australia (I.e. did not have a proper job) and the other person on the mortgage would be well into their retirement when the last years of the mortgage are to be paid.
Sorry this is a long spiel but basically I want to know what I should do, a friend advised stop paying the bank because at the moment I'm not a problem for them and they won't deal with me until I am... I don't want to be a bad creditor but at the same time I'm stuck in this mortgage and one half can't pay (I don't earn anywhere near enough to pay in in full either) their share. It's not an option to live their long term either...
