Buying a house

I'm wondering whether anyone has any tips on getting a mortgage as a single parent?

We currently still jointly own the house we bought together and I live in it with the children and pay the mortgage on it.  I don't have a lump sum to buy him out with and I will be pretty borderline in terms of having the income that a bank would normally want in terms of increasing the mortgage to buy him out.

My concern is that if I let this house go it will be even harder to get into the property market starting from scratch whereas at least at the moment I jointly own and can show that I have been paying the mortgage. 

I have until Oct next year to come up with a solution or find some money!

Any suggestions?

Hmmm, I am basically in the same situation at the mo except that I have until December to sort something out. I have the house rented out at the mo and pay all the mortgage and expenses on it myself, which G and I live with my parents temporarily.

The bank told me that there was no way I could remortgage it in my own name without at least 20% equity if I was living in it, or 30% if it was going to be rented out. And that was with a fairly reasonable surplus income each week including the rent. Basically they said that they treat it as a new application for a mortgage and they don't consider the fact that you already partly own the house.

I don't have any answers as yet (wish I did) but I just wanted to let you know that I understand the predicament. My advice would be to see the bank first (or a mortgage broker) then at least you know what you need to aim for. They aren't going to call in the mortgage as long as you are still making the payments so you basically have nothing to lose by laying your cards on the table and asking them what your options are. For me I have come to the conclusion that as long as I can sell the house for what the mortgage is then I would probably be better off saving some money and putting it in investments, as the stress of meeting the payments without the rental income is probably going to be too high, and there is no way I could come anywhere close to the 30% equity barrier (we brought the house in 06 when banks were lending 97% of what the house was worth).

Also, one bonus with not having to find a solution till late next year is that the bank told me they are likely to relax their lending criteria again in the medium term - that might mean they may lend you the money next year even if this year their answer is no.

I am hoping the bank will also transfer our mortgage into my name. We only have about 10% equity and I would like to rent it out with my Dad going guarantor. Eeek! Thats scary if the banks want 30% equity for a rental. We are getting valuations done this week and hopefully off to the bank next week to see what my options are.

Also very interested here in your progress.  There is no way in a million years that my ex would consider just transferring the house over.  He sees it as a major money earner for himself despite the fact that we are unlikely to make very much money on it at all and despite the fact that it provides a stable home for his children.

We are fixed for another year so I have a little time on my side but I'm going to be very sad to have to leave this house if it comes to that. 

Have any of you looked into whether as a single person you would be able to use the house deposit scheme via Kiwibank?  I was wondering whether circumstances changing so that you are buying for the first time on your own would mean qualifying for it.

Kate - do you mean the Welcome Home Loan? If so, it doesn't have to be your first house, you just can't own another house at the same time (as one of the requirements is that you live in the house). Our current mortgage is a Welcome Home Loan, but through SBS. Thankfully we are getting around the requirements as ex is still technically living in the house, so it meets the "living in house" requirements. We are fixed until February, but I am trying to find out if we can break the term and add any penalty to the mortgage. We have about 5% equity at the moment, which is not a lot.

I am also hoping, once things settle down and the house etc is sorted out, that I will be able to access the scheme again for a house for the girls and I.

Banks are alot tougher now than they were when we got our mortgage, and I have been told they will probably apply the new 20% deposit/equity rule as a minimum. The valuer should be here any minute so fingers crossed he values the house atleast at what it was when we bought it so it will look better for me.

I used my parents house as equity and wouldnt recommend it. Even if we have to sell this place, I will save like crazy over the next 2 years and have more than enough for a deposit on a smaller place. That might even be the best option, depending on the valuation.

Is there anyway your family can help you out a bit??

No Lil_Nic9, I've been down that road and there is no way they can help out.

How are you getting on with selling privately HuntersMama? I am looking at selling privately too but am a bit worried about how to go about it.

This is an old thread, but just as an update - the bank are finally letting me transfer the mortgage to my name only. My ex and I will have been seperated 2 years in a month's time (yay, can finally sign those divorce papers!) and I have been paying the mortgage all by myself for over 18 months now. They have finally come to the party and next Wednesday is settlement day!

Congratulations, Shelt!
You deserve it!