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Removing Name from Deeds requiring Remortgage
Diggger
Posts: 5 Forumite
Hi there
I am sure that I don't have a case here, but let me see.
I currently have a joint tennancy mortgage with my wife, unfortunately we are in the process of separation.
As a part of this I am to take on the mortgage and house, which financially I am able to do. When I approached my lender about this, they told me that to simply remove a name from the mortgage was the same process as any new application.
They agreed to port my current product to the new mortgage and the credit checks etc against me were fine. However what I am being told is that I am not being accepted at the moment because they want to re-value my property at today's rates and to re-calculate my LTV accordingly.
This has resulted in there being a shortfall between the two numbers, (did anyone notice house prices coming down? :rotfl:) that I am being told I have to stump up if I want to proceed to bring the LTV back into line.
I personally feel that this is not fair practice and that they are using any opportunity available to shorten their outstanding credit. By taking someone off the mortgage all that has changed in the deal is those available to pay the debt, not the worth of the debt. If I was told that as a sole name the risk was too great then I could take payment protection or provide a guarantor etc to mitigate but as it is all they will accept is cash!
Has anyone been through anything similar or got any advice as neither I or my ex-wife can move on till we have a conclusion?
Ta
I am sure that I don't have a case here, but let me see.
I currently have a joint tennancy mortgage with my wife, unfortunately we are in the process of separation.
As a part of this I am to take on the mortgage and house, which financially I am able to do. When I approached my lender about this, they told me that to simply remove a name from the mortgage was the same process as any new application.
They agreed to port my current product to the new mortgage and the credit checks etc against me were fine. However what I am being told is that I am not being accepted at the moment because they want to re-value my property at today's rates and to re-calculate my LTV accordingly.
This has resulted in there being a shortfall between the two numbers, (did anyone notice house prices coming down? :rotfl:) that I am being told I have to stump up if I want to proceed to bring the LTV back into line.
I personally feel that this is not fair practice and that they are using any opportunity available to shorten their outstanding credit. By taking someone off the mortgage all that has changed in the deal is those available to pay the debt, not the worth of the debt. If I was told that as a sole name the risk was too great then I could take payment protection or provide a guarantor etc to mitigate but as it is all they will accept is cash!
Has anyone been through anything similar or got any advice as neither I or my ex-wife can move on till we have a conclusion?
Ta
0
Comments
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A classic case of a lender trying to make money out of someone's misfortune .
Fair enough, if you did not have the income to take it over, but to blame it on current loan to value is very harsh.
Sadly, they are within their rights to re assess it all though.I am a Mortgage adviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
The words creek and paddle are springing to mind.
Is there anything you that could be recommended as an argument against this policy, as if I'm going to be put over a barrel I'm going to stamp my feet whilst doing so.0 -
Can you not get your ex to stump up some of the money as part of any divorce settlement?0
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