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Mortgage / Transfer of equity help

Good Afternoon,

I have been recommended to this site to see if I can get any help...

Me and my partner and looking to transfer a mortgage into both our names, the mortgage is currently in her and her ex-partners name.

a little background info, when she bought the house it was in the middle of the house price boom and unfortunately the house is now valued at approx £20k less than it was bought for.
her ex is well aware of this and wants off the mortgage completely knowing all the debt will fall onto her.

The mortgage is through Norther Rock and after filling all the forms out they have declined us on the basis that not enough funds will be coming into the household, even though i earn a considerable amount more money than her ex and have never missed a payment on my previous mortgage, let alone any other bills.

Is there any advice as to how we can get a mortgage in both our names on this property, taking her ex off the mortgage and not having to sell the property leaving my partner with a lot of debt..

Any help will be greatly appreciated
thankyou for taking the time to read.
«13

Comments

  • Mrs_Bumble
    Mrs_Bumble Posts: 1,028 Forumite
    How much is the oustanding mortgage balance?
    Value of the house?
    Your income
    Your partners income?
    Any other credit committments including other mortgage payments?
    I am a Mortgage Adviser

    You 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.
  • Mrs_Bumble wrote: »
    How much is the oustanding mortgage balance?
    Value of the house?
    Your income
    Your partners income?
    Any other credit committments including other mortgage payments?


    outstanding mortgage balance is £ £130k (including £5k early repayment fee)

    value is approx : £120- 125k
    my income is £16,800
    hers is : £16,200
    i have no other credit commitments whereas my partner has a car loan with just under £2000 left to pay, she has never missed any payments.

    thanks
  • Mrs_Bumble
    Mrs_Bumble Posts: 1,028 Forumite
    Don't want to be the bearer of bad news but there just isn't enough income there to take on the mortgage, with that loan to value you won't be able to remortgage away from NR either at the moment. So unfortunately stuck with the ex partner on the mortgage for the time being.
    I am a Mortgage Adviser

    You 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.
  • really?!
    wow, well thanks for your help, i know nothing of how mortgages work so struggle to understand it.

    we simply want to take his name off and put mine on, her ex partner earns less than what i do.

    like you say we will have to stick with his name being on the mortgage for the moment, as long as it gets paid then that is all that matters.

    thanks again
  • Mrs_Bumble
    Mrs_Bumble Posts: 1,028 Forumite
    Did he earn more originally though, when they took out the mortgage? Or did your partner earn more?
    I am a Mortgage Adviser

    You 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.
  • Mrs_Bumble wrote: »
    Did he earn more originally though, when they took out the mortgage? Or did your partner earn more?

    Her ex partner earns less than i do and always has done or so im told,
    my partner earned less when she took the mortgage out but has has a couple of pay rises since then.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Why would your partner be faced with a lot of debt? On the figures you've given the mortgage would almost be cleared by the sale of the property.

    Can understand you wanting to stay in the property. Though I feel you are over committing on your current income levels to support that level of debt.

    You may be better off renting for a while, whilst saving at the same time. Then looking for perhaps a cheaper property to purchase or even a shared ownership scheme to get yourselves back onto the ladder..
  • Mrs_Bumble
    Mrs_Bumble Posts: 1,028 Forumite
    Well if the property only achieved £120K on sale then there would be £10K debt to NR for starters, plus estate agent fees, solicitor fees etc.

    The posts above haven't said that they can't afford the mortgage just that they wanted to remove the ex partner, which they can't do at present because NR won't remove him.
    I am a Mortgage Adviser

    You 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.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Mrs_Bumble wrote: »
    Well if the property only achieved £120K on sale then there would be £10K debt to NR for starters, plus estate agent fees, solicitor fees etc.

    The posts above haven't said that they can't afford the mortgage just that they wanted to remove the ex partner, which they can't do at present because NR won't remove him.

    It appears that NR have declined the new mortgage application on the basis of affordability. So prefer to retain the ex partner as part guarantor in effect.

    I have sympathy for the OP but unfortunately there isn't an easy solution.
  • Mrs_Bumble
    Mrs_Bumble Posts: 1,028 Forumite
    I am not disputing that NR have declined the transfer of equity for affordability and prefer to keep the status as it is presently but the OP hasn't indicated that they can't afford the payments, was my point, that would be a different kettle of fish altogether.
    I am a Mortgage Adviser

    You 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.
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