OK, thanks for the advice. I nearly always communicate via email so that I have everything in black and white should there be any doubts or queries in future.
I have checked the mortgage details which appear to be correct, loan amounts, loan term and the loan is in joint names.
I am very reluctant to mention current difficulties with the ex, in case they get overly concerned with matters and try to move us off the tracker that we are on currently.
I made payment to them for this month, and have asked for terms and conditions of our current tracker and asked if any re-negotiation would be possible (subject to their approval of course) while still being able to keep the current tracker.
They have previously confirmed that everythig was up to date, with no mortgage breaks taken and that our rate has been the same since drawdown.
I'm not sure what I can ask from them without causing alarm. i.e. should I inform them the ex has decided she would like to break terms of loan agreement and has no intrest in the property?
And has threatened partion proceedings? Also refusing to sell, rent, or come to any other arrangement. Her only wish is for me to "buy her out her share of the house", but with the house in -ve equity and the current market conditions, I think that she really means that she would like me to take over her share of the debt and bear 100% of any future liabilties.
In this case surely she must realise that I would have to agree to "buy out her share of the debt" should I wish to do so. And in fact it is her who should be making me an offer.
Surely in a -ve equity situation this is unreasonable and even if possible would require a signifant investment on my part in order to simply retain the property even if the bank were to agree to remortgage to me alone. (I do not meet the criteria alone).
How ever if I was willing to purchase her half of the debt and attempt to get another mortgage ,My losses would be;
- 1/2 negative equity of current loan. ( my half as she would buy from me her 1/2 of the debt)
- loss of tracker
- require capital for deposit on new mortgage based on current market value of property
- have a high LTV % that would require a high deposit
(most lenders require 80% LTV)
- stuck on standard variable % and the additional exposure to rate hikes.
I would effectively be paying increased monthly repayments for the same property (albiet lower princial value for loan but much higher in interest). While needing to inject captial to clear debt and secure deposits, only to be forced on std variable % and risking further debts with expected drop in house prices.
Her wish to dispose of the property makes me wonder if I am even wise to continue paying monthly repayments as is. But I am keen to keep to terms of the loan agreement and view things with a longer timeframe in mind. Could I be forced to sell via a court in these circumstances??
Not sure what to do, my options appear limited. Anyone have other suggestions?
Surely the lender would want to work with me as it would be in their intrest not to have the keys handed back and to be chasing for -ve equity.