Early Redemption Fee HBOS

masonsmum

I am currently in the process of buying my ex husband out of the family home. I went to speak to an independent mortgage advisor yesterday to weigh up the options and as the mortgage is in my husbands name only he says I need to "purchase" the home from him and he advised that due to this my ex husband will be liable for the early redemption fee on the current HBOS mortgage.

My ex says this is not the case and I need to pay for this fee? Does anyone know if this is correct.

Thanks in advance for any advice.

Thrugelmir

This will form part of your ex's mortgage redemption. So is the case.

Or is it a case that your ex expects you pay to it? May be a 50/50 split would be the way forward.

dunstonh

The mortgage adviser is correct. The redemption figure is your ex husbands liability. Not yours. At no point will the old lender ask you for that money. HBOS will just add it to the redemption figure

masonsmum

My ex seems to think I should be liable as I want to stay in the family home. However even if we sold the property the fee would need to be paid.

Thrugelmir

masonsmum wrote: »

My ex seems to think I should be liable as I want to stay in the family home. However even if we sold the property the fee would need to be paid.

Then it would be shared between you upon division of assets. Selling would also involve more costs that would reduce the amount to be divided. Try and be pragmatic.

dunstonh

masonsmum wrote: »

My ex seems to think I should be liable as I want to stay in the family home. However even if we sold the property the fee would need to be paid.

What does your solicitor say? Are you willing to compromise?

masonsmum

I am actually in the process of asking my husband to speak to HBOS to authorise me to speak to them regarding transfering the mortgage as I dont know whether this is an option because if I take a new mortgage I need a 10% deposit at least, which I do not have at the moment.

So loads of ifs buts and maybes, its confusing stressful stuff

beecher2

masonsmum wrote: »

I am actually in the process of asking my husband to speak to HBOS to authorise me to speak to them regarding transfering the mortgage as I dont know whether this is an option because if I take a new mortgage I need a 10% deposit at least, which I do not have at the moment.

So loads of ifs buts and maybes, its confusing stressful stuff

Is there enough equity in the house to allow you to have a Loan to Value rate of below 90% once you've paid out your husband? If not then I'd think it is a waste of time thinking about ERCs or anything else.

masonsmum

The house has been valued at approx £85K and the mortgage is £56K however he wants £10K so will need to add that on??

beecher2

masonsmum wrote: »

The house has been valued at approx £85K and the mortgage is £56K however he wants £10K so will need to add that on??

So you are looking for a mortgage of £66k on a house valued at £85k? In that case your LTV would be 77% and so you'd be able to look at deals for and LTV of 80% and under. You'd have no need for a new deposit, though might need money for fees (don't know how that works).

I suppose the next thing to look at is if your salary is high enough for the mortgage, ie above £18k or so?

I don't know anything about how this works, but shouldn't this be part of a divorce settlement or done through a solicitor>