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Separation & Negative Equity Mortgage
Quidco-ette
Posts: 62 Forumite
Hi all, I am looking for some help for my brother..
My brother and his girlfriend are separating and she wants to move out and he is happy to take on the mortgage himself.. They are most definitely in negative equity, but he will not be asking her to pay any of the defecit as he is just happy to be staying in the house.
How do they go about getting her name removed from deeds/mortgage - they are with a sub prime lender and remortgaging obviously is not an option because of the neg equity issue.
Can anyone shed light on what the process is please.. Thanks
My brother and his girlfriend are separating and she wants to move out and he is happy to take on the mortgage himself.. They are most definitely in negative equity, but he will not be asking her to pay any of the defecit as he is just happy to be staying in the house.
How do they go about getting her name removed from deeds/mortgage - they are with a sub prime lender and remortgaging obviously is not an option because of the neg equity issue.
Can anyone shed light on what the process is please.. Thanks
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Comments
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How much is the mortgage, how much is the house worth, and how much does your brother earn?
Depending on the above, the lender may not agree to the girlfriend's name being removed at all.0 -
The mortgage outstanding is probably 75k and the house is likely to be worth 70k or less maybe.. My brother earns about 17k, the monthly mortgage payments are just over £300 so he can easily afford it..0
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He may have a struggle for the lender to allow this is his name only on a salary of 17k0
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4.4 and a bit times income may be a stretch depending on the lender.
He needs to talk to them, they not like it as rates can go up. Does he get any overtime or bonus payments?"Banking establishments are more dangerous than standing armies." Thomas Jefferson
"How can I believe in God when just last week I got my tongue caught in the roller of an electric typewriter?" Woody Allen
Debt Apr 2010 £00 -
Yes he does so hopefully they will take this into account. He is just worried at the moment that the only way to take her off the mortgage/deeds would be to remortgage which obviously is totally not an option. He has tried to call his lender today but office hours are mon-fri so he will have to wait and see..
So do you think they will increase his interest rate as a condition of taking her off?0 -
No they wont increase the rate .. BUT...the main concern should be: His mortgage is 107%, with a sub prime lender and only earns 17k.
Who is the lender? as more than likely they will only be administering the mortgage......0 -
But they have a mortgage with them and have never had any missed/late payments in the 3 years they have had it.. if they were not breaking up then having a 107% mortgage is a problem with their Lender (Platform or something like that) because they are still paying every month so why would they suddenly have an issue if she was taken off?
Is it purely an affordability thing? What options are there if they will not take her off?0 -
The best course of action is speak to Platform...forums are very "emotionless" and this is a sensitive subject..I hope things work out........0
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Thank you very much for you input 0
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Rate wont change, I meant rates om general may go up in the future.
Good luck"Banking establishments are more dangerous than standing armies." Thomas Jefferson
"How can I believe in God when just last week I got my tongue caught in the roller of an electric typewriter?" Woody Allen
Debt Apr 2010 £00
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