Gaurantor wants to be off my mortgage

JustKeepSwimming_2

Hi - hope somebody can give me some advice here please.

My ex-husband has been the gaurantor on my mortgage since I took it out 2 years ago after we split up. I'm self employed but only earn an average of £15000/year although this isn't reliable (especially at the moment) & he earns around £60000 (in military).

My mortgage has around £85000 outstanding on a part repayment (£53000) & part interest only (£32000) basis & my house has just been valued at around £156000, so there should be a decent amount of equity there. I'd like to sell & move away to a similar cost house, but my ex has now said he wants to start a new family with his current partner & they'll need to buy a house & he won't get a mortgage for the kind of place they want unless he is released from my mortgage.

I can understand him wanting to do this, but I don't know what the knock-on effects are for me & our 2 kids who live with me. I have no problem in meeting mortgage payments, as he pays maintenance for them (but not me) & I receive child benefit & disability living allowance for 1 child, & child/working tax credits in addition to my salary. But I doubt I'll be able to get a mortgage on my own, as I don't think most lenders include these as income. I can't work more hours than I do as I'm restricted by childcare, so I tend to work during school hours during term & the odd weekend that my ex has them.

Do I need to agree to him removing his name from my mortgage? Can he just remove it & what happens then? If my current lender (Northern Rock) decides I can't afford the mortgage on my loan under their "rules" despite my affording the repayments then what could happen? Could they end up withdrawing my mortgage & forcing me to sell my home to pay off the balance?

Thanks in advance for any replies - I'm driving myself insane with thinking about this!

dimbo61

Check out Yorkshire Building Society mortgage deals as they do fresh start mortgages for people who have relationship breakups.
They also take into account Child maintence ( arranged through court or CSA ) and other benefits.
My wife was in the same position before we got together.
Good Building society or call in and see a mortgage adviser at NR if you are already on a deal and happy with NR. GOOD LUCK

silvercar

Do I need to agree to him removing his name from my mortgage? Can he just remove it & what happens then? If my current lender (Northern Rock) decides I can't afford the mortgage on my loan under their "rules" despite my affording the repayments then what could happen? Could they end up withdrawing my mortgage & forcing me to sell my home to pay off the balance?

You need to agree and want to take over sole responsibikity for the whole mortgage.

If they don't give consent to you taking over the mortgage on your own then his name has to remain on the mortgage or you remortgage elsewhere. You won't be required to repay the mortgage just because they turn down a request.

Trying_to_be_good

If you sell up, you'll have to redeem the current mortgage, so he will automatically come off it, I think. Rather than you having to agree to him being removed, you'd need him to agree to be guarantor again, which it seems is unlikely. Did the financial arrangements when you divorced say he had to, as this would help you.

In theory, he and his new partner (if married) can live in quarters, but he has a right to move on, as you want to, so I can see his point, too.

JustKeepSwimming_2

Trying_to_be_good wrote: »

If you sell up, you'll have to redeem the current mortgage, so he will automatically come off it, I think. Rather than you having to agree to him being removed, you'd need him to agree to be guarantor again, which it seems is unlikely. Did the financial arrangements when you divorced say he had to, as this would help you.

In theory, he and his new partner (if married) can live in quarters, but he has a right to move on, as you want to, so I can see his point, too.

We have yet to be divorced & have agreed financial arrangements between ourselves in principle, but this wasn't discussed as originally he was going to stay in the army.Now hes decided to come out, so quarters wont be an option.

I'm all for him moving on, but I don't want to take any financial risks while I'm bringing up our young children. Its a difficult situation!

Trying_to_be_good

You need to re-assess the financial settlement (and his mortgage will potentially be worth a packet if your lawyer hasn't sorted that out yet) to take account of your ability to buy a suitable home for your children - if you still need him to be guarantor, this needs to be part of the arrangement.

Lots of people who'd though of coming out of the forces are now staying in (or trying to rejoin) because of the recession and lack of available jobs outside.

I agree it's a difficult situation, especially with kiddies involved. Keeping it all civil is a good approach, if you can, but neither of you should be doormats!

Dan_1976

To be honest I think your options are either he stays as guarentor or you sell. They wont allow you to take on that mortgage alone unless you have £5k in tax credits per annum and your lender will take it in to account.