Mortgage repayment advice

Akeno

Hi,

I'm looking for some advise on what my options are with my mortgage. This is the background:

I bought a house with my sister 7 years ago. However I recently got married and now have a baby and do not live in the house anymore. I was working part time and am currently on state maternity benefit. We are renting out my room and my sister still lives in the house. However, the mortgage repayments are now getting out of hand for me as I no longer work. I would gladly sell the house and take the hit on the selling price but this will not work for my sister as she wants to continue living there.

We have explored the option of renting the whole house out as we would get more money for it that way and my sister renting a 1 bed place on her own but it wont make much difference financially this way as we will lose out on mortgage interest relief.

We have not approached the bank (KBC) yet but I don't think this will do much good as we will probably only be offered to pay interest only for a short time. Since I'm not working I am really struggling to pay the mortgage and feel totally trapped by it.

Just wondering if anyone had any ideas of what to do in this situation?

Thanks in advance!

draiochtanois

This post has been deleted.

StillWaters

Can your sister raise a mortgage on her own to buy you out, or if it's in NE can you raise a loan to extract yourself from the repayments and get a legal document drawn up?

Akeno

Thanks for the replies.

We are in negative equity - probably lost about 50% of what we paid for it
I don't think she would get a mortgage by herself.

I had thought of her buying me out but I'm not sure how to go about it. Would I pay half of the negative equity and she would take on the mortgage from there?

The_Conductor

Akeno wrote: »

Thanks for the replies.

We are in negative equity - probably lost about 50% of what we paid for it
I don't think she would get a mortgage by herself.

I had thought of her buying me out but I'm not sure how to go about it. Would I pay half of the negative equity and she would take on the mortgage from there?

Property has X amount outstanding on its mortgage.
Property is worth Y
She gives you 1/2 Y.
You still owe 1/2 X
You put the 1/2 Y your sister gives you towards the 1/2 X and still owe the difference

You're not paying half the negative equity- you're paying half the mortgage. She owes you have the net current value of the house. Obviously she owes you a hell of a lot less than half the mortgage. Its up to you to find the difference elsewhere.

StillWaters

I wouldn't rule out talking to the bank if your sister is agreeable. Entering MARP and getting interest only for a year or so will give you some breathing space.

D3PO

StillWaters wrote: »

I wouldn't rule out talking to the bank if your sister is agreeable. Entering MARP and getting interest only for a year or so will give you some breathing space.

Why should she be allowed enter MARP ? Her sister doesn't want to move out. If the OP didn't have the foresight to think of the future when she bought 7 years ago with a sibling then that's her own fault.

This isn't a normal somebody cant pay scenario, this is an OP who didn't think of the consequences of what she was doing. Going off getting pregnant and married and thinking of what to do after the fact.

The OP has an solution here weather its palatable or not. That is to move back in with her husband and child. If she cant afford her half of the mortgage and cant afford to discharge the NE on the property its either that or find a way to pay her half of the mortgage.

Akeno

Thank you for all the replies they are very helpful (except for D3PO's response but I'm not going to get involved with replying to the post).

It was nice to get helpful feedback and think about all my options.