Taking off one of the names from joint mortgage = remortgaging?

Ildiko

I have a joint mortgage with my husband with very good interest rate (1.05%). I've separated from my husband, and would like to take his name off our mortgage. I can afford the monthly payment, therefore i would like to carry on with my current mortgage, without selling the house. I would like to know whether the bank will consider this as change in my circumstances and will have to remortgage. It would be a shame to loose a good mortgage rate.

If i am to keep the mortgage joint, how would it affect us/him, when my husband wants to buy a house of his own within 6 months time?

opinions4u

Ildiko wrote: »

I have a joint mortgage with my husband with very good interest rate (1.05%). I've separated from my husband, and would like to take his name off our mortgage. I can afford the monthly payment, therefore i would like to carry on with my current mortgage, without selling the house. I would like to know whether the bank will consider this as change in my circumstances and will have to remortgage.

You will need to ask them. They will fully assess your ability to maintain the loan, charge you around £200 to do it and you'll probably incur solicitor costs of around £300-£400 for changing the ownership of the property.

They don't have to agree to do it. By removing an individual from a mortgage they are reducing their security. Where a property has a high LTV or negative equity they may refuse to release him from his mortgage commitment, even if your income is more than sufficient.

If i am to keep the mortgage joint, how would it affect us/him, when my husband wants to buy a house of his own within 6 months time?

It will make getting a new mortgage difficult for him.

beecher

If you post the value of the house, level of mortgage, and your salary details someone will be able to tell you if you have a chance. Make sure you can afford the mortgage at 8%, not just 1.05% before you agree to take it on.

Ildiko

The house has been valued at £139.000. Currently i still have £118.000 to pay off my mortgage over 23 years. My salary is 33.000/year.
Thanks for the caution - i made sure that i am able to pay the mortgage even if the interest rate shoots up to 8%