Porting mortage with ex-partner name on mortgage

F_t_P

Good afternoon people,

In October 2005 my partner and I remortgaged to get a better rate on our £165k mortgage. This rate was 4.85% fixed until October this year. In October the mortgage rate becomes much better, albeit while interest rates are low.

In February 2006 my partner became my ex-partner and moved out. Since then I have paid the mortgage. He has left his name on the mortgage so that I can keep the £165k loan and stay in the property with our children.

The property is now worth £250k. LTV is 66%. Or approx £85k equity.

I want to move and I want to keep the same mortgage as (a) the rate becomes very reasonable in October this year and (b) I need £165k to get somewhere with enough bedrooms for the children.

My mortgage lender advised me that "we" can keep the mortgage, the rate, and the terms and conditions but we have to make a new application. If I go through this process, the company will find out that my ex-partner is married to someone else and doesn't live with me any more.

Is there any way round this? Can I still have (a) and (b)?

(I do realise that over-lending has caused many of the current problems but I can pay the mortgage on the £165K loan fine).

Any suggestions? Small beacons of hope? I just want somewhere nice to live! I'm not trying to make loads of money on property.

thanks for any advice.

L

F_t_P

Should have said, I earn £25k.

Thrugelmir

If you want to move. Then you need to be independent of your ex.

You need to decide which is more important to you the mortgage or a new home.

If you remortgaged in 2005 then by now the mortgage should have reduced from the original £165k.

F_t_P

My ex would help me move, if it's possible to get round the mortgage problem. I'm independent from him apart from this small detail!

I would like a new home, but renting is way more expensive than mortgage because mortgage is... interest only. (At the moment). Therefore I want to keep the mortgage.

Thrugelmir

F_t_P wrote: »

My ex would help me move, if it's possible to get round the mortgage problem. I'm independent from him apart from this small detail!

I would like a new home, but renting is way more expensive than mortgage because mortgage is... interest only. (At the moment). Therefore I want to keep the mortgage.

Hardly a small detail !

Being on interest only isn't going to help you in the longer term. More likely to cause you issues. As ultimately you will need to sell your home to clear the debt.

Without a repayment vehicle in place you will struggle to remortgage the property.

Once the interest rate on the mortgage drops will you be in a position to overpay the mortgage? If you can, this will at least help build up your equity. Perhaps making a move in a few years time a possibility.

silvercar

What value property are you looking at? Putting the ex partner aside, porting a mortgage involves a new lending decision, so the lender will look at the value of the new property and decide if that fits its current lending criteria before agreeing to you porting the mortgage.

If the lender is happy with amortgage of that size being ported to the new property, it will then look at whether it feels you can afford that size mortgage. A 165k mortgage on an income of 25k is a non-starter, but they may be happy for the mortgage to continue in joint names, provided that your ex can show sufficient income to service that mortgage and whereever he now lives.

F_t_P

My property is worth at least £250k, might be able to get £270k. I wanted to buy something of the same value as my current property.

You're right that £165k against £25k earning is not possible.

You're also right that even though you "port" the mortgage you still go through the same application process as a new mortgage. That's what my lender told me.

I just wondered if anyone knew of a way round this but I fear I'm not going to find one.

It's really not about making money for me, it's about somewhere to live.

thanks anyway!

beecher2

I think you have to be upfront with your lender and tell the truth about your situation. Don't take it for granted that they'd allow you to be interest only in any new house as they will probably ask for evidence of how the capital will be paid.

Ultimately something's got to give - either the kids have to share, you move to a cheaper area, or you find someone else who would be able to come on the mortgage.

F_t_P

Cheers for advice. Will have to think of some other solutions...

joolley

Hi,

It's probably not what you want to hear - but helpful and obviously still concerned ex-husband does not take away from the fact that at the current time you are not meeting the current loan payments. As it is, you are paying interest only, which means that you aren't paying off the loan. For now, that's not biggie as the bank has already allowed this. That is not to say that they will again. Also, depending on when you first bought, capital gains may pay off this property in the long term but may not do another more expensive property bought now. Beecher2 is right. Something will have to give.

I always feel a wee bit uncomfortable giving a contrary opinion so this is not to be awkward. Just as an outside looking in, that's how it looks. Sorry.