Removing ex-partners name from mortgage

cgillespie

Tricky situation.

Just about to re-mortgage to First Direct - should go through from September 2008.

On application both my name and my ex's were listed, for purpose of listing two incomes. They would not lend to me on my own.

Myself and my ex have come to an agreement that I will buy her out should First Direct allow me to continue to borrow the money on my own.

Obviously with the re-mortgage only going through in September, I thought of calling them the month after.

My salary is around £22 to £30k a year. Mortgage is £162k. Value of property is £230k.

What are they likely to say when I tell them ive split up with my ex and she wants her name off the mortgage?

Without a letter from FD confirming they are happy to lend me the money on my own my solicitor cannot process the 'buy-out'.

Its an off-set mortgage and payments are only £750 a month, which as I bank with FD they will know I can easily afford.

Surely they cant say no... can they? Would they look for a guarantor?

Any advice would be greatly appreciated!

Oldernotwiser

I don't see that getting a mortgage for 6/7 times your income is going to be as easy as you think. Sorry.

cgillespie

Oldernotwiser wrote: »

I don't see that getting a mortgage for 6/7 times your income is going to be as easy as you think. Sorry.

I dont know whether im trying to be too smart - but the thought was i'd already have the mortgage. Now all im asking FD to do is remove my ex's name. In effect meaning they are only lending to me.

What other option could they take - repossess?

Withdraw the funds?

I need advice please!!!

silvercar

Lending to one person is a greater risk, something the lender doesn't have to agree to. As far as the lender is concerned you are both liable for the mortgage, even though one partner has moved out.

What other option could they take - repossess?

The lender won't do anything, you are both still liable for the mortgage. If you both stop paying the mortgage they would repossess. This would result on credit problems for both of you and difficulty in obtaining another mortgage in the future.

Withdraw the funds?

What funds?

If (and there is no harm in inquiring) the lender won't agree, then either you both agree to sell up or you write a private agreement with your partner that you will be responsible for the mortgage and entitled to all equity in the property but her name remains on the loan. She may not like this as it leaves her jointly liable if you don't pay the mortgage and it creates a difficulty in her getting a mortgage of her own.

Myself and my ex have come to an agreement that I will buy her out should First Direct allow me to continue to borrow the money on my own.

The agreement is useless without the lender's agreement.

If you haven't yet completed the remortgage, you may be better reviewing your options now.

lynnexxxo

Does you ex not want her share of the equity?? Meaning you'd be looking at a mortgage of 192K.

What are your savings, would it not be easier to use them as a big deposit and get a smaller mortgage our your own?

On a salary of 30K you'd be looking at getting offered little more than 100k mortgage.

cgillespie

This might be my only option then (i.e. keeping ex's name on papers). Not sure if my ex would agree to it as it would stop her from buying herself.

I have enough cash (just) to offer her - for her share of everything.

Only problem is getting FD to agree to lend me the money without her name being on the paperwork.

I have spoken to them briefly and they said they assess each case on an individual basis.

If anyone else has any thoughts please let me know.

_Andy_

I really can't see FD lending over 5x income.

Sunnyday

Do you have a trusted friend whose name you could transfer onto the mortgage?
I did this some time ago, my ex`s name was transferred off and the friends name was transferred on at the same time , later when i met my new partner we had the name of the friend taken off and my partners transferred on.
They didn`t make any fuss about it at all.
HTH
SD

cgillespie

Sunnyday wrote: »

Do you have a trusted friend whose name you could transfer onto the mortgage?
I did this some time ago, my ex`s name was transferred off and the friends name was transferred on at the same time , later when i met my new partner we had the name of the friend taken off and my partners transferred on.
They didn`t make any fuss about it at all.
HTH
SD

All my close friends have mortgages, so this would probably rule out that option. I was hoping FD might accept a guarantor - but it seems they would want someone who has an income.

TighterThanTwoCoatsOfPain

Bare in mind, that if you have enought cash "just" to give her your share, then your payments could go up if the quote you have is based on it being Offset...

Also, those figures look like interest only... assume you are also paying captial somehow, or also into an investment vehicle?

Frugaldom

silvercar wrote: »

...either you both agree to sell up or you write a private agreement with your partner that you will be responsible for the mortgage and entitled to all equity in the property but her name remains on the loan. She may not like this as it leaves her jointly liable if you don't pay the mortgage and it creates a difficulty in her getting a mortgage of her own.

The agreement is useless without the lender's agreement.

If you haven't yet completed the remortgage, you may be better reviewing your options now.

Sorry for butting in here, but I was in similar situation when my ex stayed on in the house after I left. We made a private agreement that he would assume all responsibilities for keeping up payments etc but the agreement was not worth the paper it was written on, despite it having been done through solicitors. :mad: When he missed payments, they came after me!! :mad: Then he and his, by then, new wife apparently (and very stupidly) tried to sell the house without my permission. Where he thought he would gain from 100% of the proceeds, he failed to do so and we were each awarded 50% of the negative equity! Fortunately, that sale fell through and the next attempt took us out of negative equity and covered most of the debts and legal fees. You MUST have something concrete and legally binding from all lenders and, IMHO, if you have split from your ex, then make that split final and fair.

PS: English law is probably different but getting financially involved with another person has long-standing consequences in the event that anything goes wrong.