strict mortgage lender

mymite060708

my wife and I took out a mortgage last year. Due to certain events we have decided to get divorce.

I would like to take on the mortgage myself and transfer everything into my name. My wife has already agreed to this.

We currently only have 6% equity in the house and the bank will not let us do a transfer of deed or equity until we have 15% equity in the house (this is their current lending policy)

I have proved to the bank I can afford the repayments on my own but they say as it will be like taking out a new mortgage they only lend up to 85% LTV and since every house has lost value this year I would need to pay them around 25K. I also can't sell it as the sale price may not cover the mortgage

Does any one know of a way round this or are we stuck with it until we can sell it

Jacks_xxx

:wave: Hiya hon,

Sorry to hear about the divorce.:(

The only thing that I can think of is to get your respective solicitors to draw up an agreement between yourselves and leave the lender out of it until the housing market picks up again, or you can save up the extra cash to change the LTV.

OR Speak to a mortgage broker to see if they think a different lender might be willing to take you on.

Sorry that's all I can come up with.

Love Jacks xxx

silvercar

If the sale price won't cover the mortgage then you have no equity!

Its not surprising they wont allow one name to come off the mortgage, in the event of a repo, they know they are unlikely to get all the mortgage cleared from a sale. They just want to reserve the right to chase both of you should this happen.

Get a solicitor to draw up an agreement outside of the mortgage. Only downside is this will leave your wifes name on the mortgage so she would have to declare this liability if she wanted to buy a home elsewhere.

beecher

Jacks_xxx wrote: »

:wave: Hiya hon,

Sorry to hear about the divorce.:(

The only thing that I can think of is to get your respective solicitors to draw up an agreement between yourselves and leave the lender out of it until the housing market picks up again, or you can save up the extra cash to change the LTV.

OR Speak to a mortgage broker to see if they think a different lender might be willing to take you on.

Sorry that's all I can come up with.

Love Jacks xxx

this won't happen as the OP has an LTV of higher than 90% (and probably nearer 100%).

Selling may still be the best option - if you wait for the housing market to pick up to give you enough equity you may well be waiting for years on end.

Robert_Sterling_3

or even decades.

Jacks_xxx

beecher wrote: »

this won't happen as the OP has an LTV of higher than 90% (and probably nearer 100%).

Selling may still be the best option - if you wait for the housing market to pick up to give you enough equity you may well be waiting for years on end.

I have no knowledge of the OPs financial circumstances and so I have no idea how long it would take him to save up the £25k that he says he needs to hit the lenders target LTV of 85% but it's still possible surely?

Love Jacks xxx

Gorgeous_George

I suggest that the OP should NOT even want to take the mortgage on himself. House prices are dropping like stones and you do not want to be left holding the baby.

Sell it and rent. Share any losses. Buy again when the prices stop falling.

GG