Husband wants off a 4-way-mortgage!? Very complicated please help.

Senior_Paper_Monitor

As far as I know any of the lenders who will not treat this mortgage as a mortage liability for the purpose of affordability will still treat it as an outgoing (even if not being paid by the applicant) for that purpose.

We have just put one through in very similar circumstances (the lender agrees to count the potential monthly mortage payment -currently paid in total by husband - as if it was an HP or similar agreement).

As the husband of the OP is on a basic salary of around 25K the above formula will wipe out all his affordability in such circumstances.

If there are lenders that will ignore the existance of the other mortage (and potential legal liability) totall, I admit to being unaware of them (and will have to put my research head back on!)

Thrugelmir

Senior_Paper_Monitor wrote: »

If there are lenders that will ignore the existance of the other mortage (and potential legal liability) totall, I admit to being unaware of them (and will have to put my research head back on!)

The concern for the OP is that if the "joint mortgage" defaults. Then her husband is jointly and severally liable for any outstanding debt. Half of any equity in their new property could be treated as an asset and claimed against.

Senior_Paper_Monitor

Mr Thrugelmir - on that we agree totally (and that is a very serious situation that he should extract himself from ASAP - particularly as the situation there sounds 'dodgy' and the likelihood of it 'collapsing like a pack of cards' high enough to be worrying - hence my original suggestion to head towards a solicitors ASAP).

There a dozens of issues about the apparent relationship - including the standard question within the remortgaging process as to whether the additional lending is for the benefit of all the applicants when it appears that he has not benefited from the other properties purchased in any way - and these move well out of my knowledge range and why I suggest that it should be reviewed by an appropriate solicitor.

The only thing I am questioning is whether any potential lender for the new (OP + husband) mortage will totally ignore that potential liability - in my view, some will in terms of 'as a mortgage', but will treat the potential monthly expenditure as a loan for calculating affordability (which will wipe out his total income). If I've got this wrong am happy to have it explained to me further - and learn more about it.

scoobyfamily

Thank you everyone - this is my first time on here and you have been really great

No, they do not want him to still pay the £600 - they apparently only rent it out because he is not wanting to be on the mortgage or pay towards it. So it's because they "have to" rent it out. As previously mentioned they often have people in some of the bedrooms with the en-suites for a couple of months then they disappear. Seems very strange to me as there is only one lounge and kitchen so it can be very strange when visiting to see random people cooking there dinner and wandering upstairs with it!

This is entirely irrelevant but perhaps gives more of an insight - sister also has top of the range minibuses for her business (two) and one is on finance with one on lease - apparently "just in case something goes wrong" ?

An important point which I forgot to mention is that her business is also on companies house registered at this properties address (as head office) even though they operate from a leased property. A lot of business correspondence goes to the house which I've always found strange. I think the "pack of cards" idea you mentioned sounds spot on from my perspective - I'm not trying to be awkward, I just want to have my own house with my Husband eventually even if it's not a mortgage for a couple of years time until a deposit is entirely saved.

It's the ticking time bomb of waiting for something to go wrong that terrifies me as it could potentially ruin our lives!

He doesn't know how to approach this or what to do hence this thread.

We are worried if he goes direct to a solicitor then they may see it as "going behind their back or sly". I'm past the point of caring because she must have at least £1m of "debt" assigned to her name via properties loans etc and none of them are close to being near paid off - 20+ years from it.

And when it all goes wrong - I don't want anything to do with it.

He tried to get a tiny £5,000 from the bank but they refused and said it was because of the mortgage being way over what he could afford alone (in 2008) he ended up getting finance for his car in the end though but it just shows what an impact it's having on his credibility to lenders.

scoobyfamily

His sister also stated to me a few years ago "if you do get married you do realise you will need to sign a pre-nup" I just laughed. I never did do that, he of course would never ask me to do such a thing. She seems to think she has assets when realistically she has debt.

Thrugelmir

scoobyfamily wrote: »

His sister also stated to me a few years ago "if you do get married you do realise you will need to sign a pre-nup" I just laughed. I never did do that, he of course would never ask me to do such a thing. She seems to think she has assets when realistically she has debt.

As his sister operates a Limited Company why not do a search on it and ascertain its financial status. She might be more canny than you realise.

whitewing

Do you know if they took out the mortgage as 'joint tenants' or 'tenants in common' as that may affect the legal situation. (This may have already been answered on the thread, I'm not too comfortable with the terminology of financial things!)

Did your DH get legal advice when he did the deal? Was there any legal documentation drawn up in case things go wrong? Can you get hold of the paperwork?

I do sympathise with your situation - it's the sort of thing my dad tried to get me to do.

KarenBB

You've said your husband doesn't have much documentation for the mortgages and doesn't really know what he's signed up for. I'd suggest getting copies of everything relating to the mortgage under a subject access request if necessary. As the family might not be too happy about your husband doing this he could as for all of the information to be sent to a branch for him to collect. Or you could make an appointment to see a mortgage advisor at the mortgage company and ask them to sit down with you both and explain exactly what your OH has signed up to. You could even do both. Good luck K

Errata

You're in a council house. Keep paying the rent on that and you and he have a roof over your heads for life, which in this day and age is priceless, whatever else happens on the financial front.

Trollfever

The only way we could find out the mortgage company

A £4 download from the Land Registry should reveal this and any other charges on the property.