Swapping to BTL after relationship break-up?Make Text Bigger
My partner and I have unfortunately broken up after 7 years together, during which time we have cohabited on a residential mortgage in both our names. We also have a 2 ½ year old son.
Thankfully the split is amicable so we are in discussions over what to do with our house. We are very reluctant to sell as we only bought it in November 2014 (we’d previously had a res mortgage on our previous property for 4 years), have spent a lot of time and money into doing it up and our son being settled into the area (nursery etc.).
The current thought process is that I will move out and rent somewhere nearby while my ex and son remain in the house. However, as my ex only works between 8 – 20 hours a week on a zero hours contract (she works in home care), she can’t afford to take on the mortgage by herself. I’m happy to continue paying it, but will then struggle to pay rent on my ‘new’ place as well.
While the mortgage is in both our names, the agreement was achieved only using my financial information for the reason outlined above.
I mentioned this to a friend who suggested the possibility of switching our mortgage to a BTL solely in my name, whereby I effectively become the landlord and my ex the tenant. The rent to cover the mortgage would then be made up between my ex’s earnings and housing benefit.
Does anybody have any thoughts on whether this is a feasible approach and the potential pitfalls / consequences? Do lenders allow mortgages to be swapped in such circumstances?
I’ve put a call into our mortgage advisor to discuss but am waiting to hear back from him.
If I’m honest, I’m not convinced at how ethical this would be (I despise those who claim more than they should) but am willing to consider any option that enables us to keep our house and give our son some continuity going forward.
Any advice / thoughts would be welcome.
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