Alliance & Leicester Plus Mortgages?!?!

Sally-B_2

Hello. Not sure if this has ever been mentioned previously but Im new the site so please bear with me if i make mistakes.

I took out a mortgage with Alliance & Leicester in July 2007. I bought the property for £85000 but took out an £87000 mortgage so there was a £2000 loan on top.

The mortgage was taken out with my ex partner who only lived in the property for 6 months and he never contributed anything towards the payments. Since then I have still been living in the property and have kept up with all payments and never fallen behind and i plan to take the mortgage on with my current partner.

I finally had my ex partner agree to sign the mortgage over to me so i recieved a Transfer of Equity application. I returned this back to A&L only to be told that there is a Secured part of £81000 and an unsecured part of £6000 so until the remaining unsecured loan is paid off we are unable to transfer it into our names. This is because its called a 'Plus Mortgage'. Im not even sure if this was explained by my FA before it all completed!!!

I asked for a copy of my terms and conditions but never recieved a copy so i looked through the copy i recieved from when my mortgage completed and it doesnt say anywhere about not being able to go ahead with the TOE until the unsecured loan is paid off.

Me and my partner have a joint income of what i had when the mortgage was taken out so i know its definitely affordable. I have lived in the property for 2 and half years, kept up to date with every payment and im really worried that if i dont transfer the mortgage out of his name he will take on loans/credit cards that maybe registered to the property or maybe try and make me sell it. If house prices were to go back up and i was to sell it then im worried he will take half of what i make on the property but if it was to sell now there is no way he would take on half of the debt. I just feel like im still tied to him

I have spoken to several solicitors and a financial advisor who have all basically said im stuck. Its been going on for over 2 years and i really dont know what i can do and A&L definitely dont want to help me.

Has anyone ever come across this before or can anyone please offer me any advice as i really want to avoid taking out a loan to pay the unsecured part off as it will only cost me more with the interest rates being offered.

Thanks in advance.

Sally

Cannon_Fodder

Lots of people are stuck like this. Even those who started with a 90% mortgage are finding they are held back by being in negative equity, let alone those who had 100%+ arrangements.

A solicitor should be able to draw something up that your ex signs to waive his rights to the property, until such time as the requirements of A&L can be met.

dunstonh

Im not even sure if this was explained by my FA before it all completed!!!

With respect, i cant see why they would unless you were planning to split up back in 2007. Plus, it may have been acceptable under the lending criteria at that time. Things are more stringent now.

Also, the split on the loan between 81k and 6k would have been disclosed on the illustrations and the offer letter/agreements.

I asked for a copy of my terms and conditions but never recieved a copy so i looked through the copy i recieved from when my mortgage completed and it doesnt say anywhere about not being able to go ahead with the TOE until the unsecured loan is paid off.

Again, why would it?

im really worried that if i dont transfer the mortgage out of his name he will take on loans/credit cards that maybe registered to the property

If he doest live there then he would be committing fraud. He can do that whether he is on the mortgage or not. So, that bit doesnt matter.

or maybe try and make me sell it.

Which means both of you would be out of pocket so its unlikely.

If house prices were to go back up and i was to sell it then im worried he will take half of what i make on the property but if it was to sell now there is no way he would take on half of the debt. I just feel like im still tied to him

Unfortunately, that's one of the risk of buying a house. I wouldnt be worried about house prices going back up to where they were again for the time being. Most recessions see house prices drop, appear to recover and then drop again. However, if they do go back up, if you have no agreement in place, then he could try and claim a share on the gain unless you take some action now.

I have spoken to several solicitors and a financial advisor who have all basically said im stuck. Its been going on for over 2 years and i really dont know what i can do and A&L definitely dont want to help me.

The advice they have given is correct I'm afraid. You are stuck.

so please bear with me if i make mistakes.

Your post was fine. Easy to understand and has most of the key details. I'm just sorry the response isnt what you want to hear.