Mortgage & Divorce

madison's_mum

Hi,

I have a joint interest only mortgage with my husband who i have separated from. i'm not entirely sure how he did it but he has a managed to get a mortgage in his sole name for another property he is now living in.

he has now told me that he is struggling to meet all his repayments (as he took out a load of credit to have a new kitchen, bathroom and bedroom put in) and he is not sure if he will be able to keep his house. I obviously want to keep my house and was wondering if his house got repossessed would it have any come back on my house ie could that also get repossessed or made to be sold,i'm up to date on all my payments.

Also what would be the best way to sever the financial ties i have been told i need to get the title deeds amended and have been quoted £350 for this. I can't currently get a mortgage in my sole name as i haven't been in my job for 6 months. Would i need to amend the deeds before the divorce and getting a new mortgage or can that be done before?

Hope this isnt too rambly.

Thanks
MM

silvercar

I would try and sever links as soon as you can.

There are times when paying a solicitor is worth the money. A friend in a similar situation to yours got some right under some marital homes act registered on her deeds. This prevented any charges being put on her/their house without her knowing and prevented her ex taking a secure loan out against the home!

Normally the ownership on the deeds has to be the same as the mortgage, but I have heard of cases where a house has been transferred to one partners name as a result of financial agreement following a divorce and the mortgage remaining in joint names as the lender wouldn't release one person from the liability.

Trying_to_be_good

Hi - sorry to hear you're having a time of it.

I think you need to see a divorce lawyer - is there a reason why you haven't done so yet? I'm guessing the separation was a while ago if your ex has managed to buy a house and spend on doing it up.

If he got another mortgage, presumably his credit 'score' was enough for this, and also for the additional loans/credit for improvements - as the mortgage on the house you're living in is joint, this should have shown up on any searches even if he tried to not declare it.

I think the only way your house is at risk is if he goes bankrupt, as half (or so) will count as his asset. But you need to sever the financial ties, as you know.

If I were you, I'd be getting the divorce bit sorted, and moving on with my own clean financial slate if a lawyer says that's possible.

madison's_mum

We split on NYE last year and I went to a divorce lawyer in January, we went through mediation and got everything decided on how it was going to be split the only reason it's stopped at the mo is because i don't have £350 to be able to pay the divorce fees. I think i will try to get the money together and see if i can get him off the deeds first then!

forerunner_uk

There is no reason why you can't get a mortgage in your sole name with less than 6 months at your current job. Northern Rock, C&G, Alliance and Leicester, Abbey and others will all entertain this (assuming your income is sufficient of course).

Speak to a mortgage broker to find the best option. Then whilst remortgaging you simply need to pay for a transfer of equity (your husband will have to agree to it) - this will normally cost roughly £250 in legal fees that can be added to your loan so you don't have to pay upfront!

Bromley86

I obviously want to keep my house

I think i will try to get the money together and see if i can get him off the deeds first then!

Did your ex agree that you could have the whole equity of the house? If not, it's going to cost you more than £350 to legally change it to 100% yours.

The other consideration is that if you become the sole owner (well, along with the bank) then you become solely responsible for any negative equity if you have to move.