Co-operative Mortgage - Not a happy bunny

Lindy_Loo_3 · 10 June 2009 at 12:11PM

Hi again

Some of you may remember that I recently posted for advice on getting a mortgage.

To update; we contacted the Co-operative Bank who my OH has been with for 12 years - had various loans, HP etc from them all paid back on time etc.

I however, have only been with them since my bankruptcy was discharged in 2006 - no debts with them at all or since then.

Knowing that my bankruptcy would result in a refusal of mortgage, we spoke to the FA and were completely upfront about why we only wanted to apply in the OH's name. I understood that I would have to sign a notice giving up "squatters rights" etc and we were happy with this as the idea was when the discharge was removed from my record we would consider adding me to the mortgage or deeds.

Whilst we knew their rates weren't the most competitive, we believe in loyalty and until now, believed in the Co-op's ethical policies.

We were told they would need to speak to the underwriters but in principle it all seems fine.

Please note we have never had a credit financial link and the only account we share is a savings account with our deposit in.

Well today the underwriters came back and said it was policy for any married couple to submit a joint application and the OH would NOT be able to apply without me being on the mortgage!

They went on to say that the OH has no problems getting the mortgage (squeaky clean credit history, same job for 11 years, same bank, 15% deposit etc etc) however because he is married to ME he would get refused! This is the reason WHY we have no financial links!

WHAT THE HELL??? I'm having trouble accepting that this ethical company have basically given the reason for refusing our mortgage is because we are married. I actually asked, if we weren't married could we have the mortgage and was told "YES".

Sorry, rant over. Just needed to get that out of my system. Oh well, back to the drawing board . . . .

Cannon_Fodder · 10 June 2009 at 2:31PM

Maybe they are respecting the extra protections that marriage affords;

The best example I can find from a quick google is
http://www.adviceguide.org.uk/index/family_parent/family/cohabitation_and_marriage_legal_differences.htm

"Both married partners have a right to remain in the matrimonial home, regardless of who bought it or has a mortgage on it. This is known as home rights. You will have the right to stay in the home until a court has ordered otherwise, for example, in the course of a separation or divorce settlement."

Check with your legal representative, as you presumably have a solicitor to arrange the conveyancing, on the true position/options.

thepeachyone · 10 June 2009 at 4:45PM

Im not happy with the co-op for many reasons, the main one being the fact that I still dont have a final mortgage offer after applying on 23 February and being stalled by constant requests for information. But we also tried to apply in my name only and we couldnt.

Lindy_Loo_3 · 10 June 2009 at 8:38PM

I can almost understand their policy but it doesn't make it fair. Whilst I appreciate I may be deemed as "high risk", we are not asking for me to be responsible for the mortgage or payments etc. The mortgage was to be based solely on the OH's wage and affordability and I was to sign a waiver giving up any rights to the property (in order to secure loans etc etc). We checked with our solicitor who said this was not a problem and she had done this a number of times where one party was not "credit worthy".

What sickens me is being told that if we weren't married and only living in sin, he would get the mortgage without a problem. Great ethical stance by a company we believe in and will be moving our savings out of shortly! We actually thought that by being completely upfront from day 1 and explaining why I wasn't going to be named on the mortgage or deeds it would count in our favour. So much for loyalty.

The worst part is that we were queued to get an appointment for the "Ownhome" scheme as the OH is a key worker; no point now seeing as the Co-op won't give him a mortgage and they're the only lender you can use.

Still fuming as you can see . . . . .

Gorgeous_George · 10 June 2009 at 9:06PM

You can blame the co-op all you want but they are protecting themselves and their customers. Meanwhile, you are trying to cheat the system by applying in just one name.

It's a cost of bankruptcy I'm afraid.

GG

Lindy_Loo_3 · 10 June 2009 at 9:22PM

Gorgeous_George wrote: »

You can blame the co-op all you want but they are protecting themselves and their customers. Meanwhile, you are trying to cheat the system by applying in just one name.

It's a cost of bankruptcy I'm afraid.

GG

I take serious offence to your comment!

Firstly, we are NOT trying to cheat the system at all! We went to the Co-op and explained our situation and gave them our credit files to look at. We have nothing to hide and willingly gave all the information needed.

Secondly, the bankruptcy was in my name only. MY debts from being stupid when I was younger before I was married - nothing to do with my OH.

Thirdly, how is it a high risk for the bank and it's customers if I have NO financial interest in the property? Surely it's in their best interests NOT to have me on the mortgage?

I was / am happy to sign the neccessary agreements giving up any rights (squatters or otherwise!) and reassess our agreement when the bankruptcy is removed from my records.

Finally, the Ownhome scheme is designed for Key Workers to help keep them in their jobs / areas of work. My OH would essentially be excluded from a government funded scheme for the reason that he married someone whose credit history is tarnished.

My OH and I have NO financial links and his credit reports are gleaming.
For the record I have been discharged for 2.5 years and settled most of the debts anyway. Since then you can bet that I've been as good as you can be when it comes to money.

Again, your comment is inflammatory and you should try reading the whole thread before posting such statements.

pumpkin30 · 10 June 2009 at 9:43PM

sorry loo but i agree with george
dont see how you can blame the bank

Lindy_Loo_3 · 10 June 2009 at 9:46PM

pumpkin30 wrote: »

sorry loo but i agree with george
dont see how you can blame the bank

So you agree that we're trying to CHEAT the system by being honest?

I'm not trying to blame the bank I'm trying to understand their reason for not accepting a single application or joint application where I relinquish any rights?

So by this standard, anyone that we go to will insist on a joint mortgage agreement? Hardly fair on the OH is it now?

Gorgeous_George · 10 June 2009 at 10:13PM

Life doesn't have to be fair but I don't mean to offend.

When funds are limited (as in credit crunch), would it be fair to others (who have not gone bankrupt) if you were loaned money that they might wish to borrow?

GG

Lindy_Loo_3 · 10 June 2009 at 10:24PM

I accept you didn't mean to offend I'm obviously just taking things a bit too personally.

My point is that I'M not looking to borrow any funds whatsoever. My husband wants to buy a house for us to live in rather than pay extortionate rent.

He has an immaculate credit history and has been in the same job for 11 years with another 11 years to go. Why should he be penalised for MY terrible mistakes?

I know bankruptcy is an awful position to put oneself in but it's been 2.5 years since the discharge and I've actually worked to pay back the majority of the debts. Not that this takes away from the fact it happened.

My nose is just out of joint because the Ownhome scheme gave my OH a real chance to buy a decent home for life and it seems unfair that something completely unrelated to him will prevent him from being able to do so. I'm pretty sure that the scheme was never intended to exclude anyone on this basis but c'est la vie?

Can anyone advise if this is standard practice as I've asked for advice on the same issue before and was told by other posters that we would NOT be making a fraudulent application by only submitting a single applicat as long as the legal paperwork was drawn up and signed to basically say I have no hold on the property and will leave if it's sold?

Trollfever · 10 June 2009 at 10:38PM

The Co-operative Bank Leads the Way in Responsible Lending and Sees 50% Fall in Repossessions

Our responsible approach to lending has also resulted in a strong mortgage book as we believe in only lending to people what they are able to afford."

http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/05-29-2009/0005034767&EDATE=

Co-operative Mortgage - Not a happy bunny

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