Northern Rock Together Mortgage - Change of Parties

Jo_2k

Hi, just wondered if anyone has been in my situation or if anyone can offer any advice please?

I am going through a divorce and it has been agreed that I will take on the mortgage and keep the house. We took out a 'together' mortgage in 2007 and am probably in around £2k negative equity at worst. I have spoken to northern rock who have sent me the forms I need to fill in to remove my ex from the mortgage but I am so worried that I will not be accepted.

The balance of my mortgaged is around £118k, I earn approx £27k before tax. I have no debt other than the mortgage and a joint loan which will (fingers crossed) soon be out of my name. My credit score is the highest it can be and have no late payments etc. Just wondered if anyone can give me any advice or ideas as to whether I will be accepted to put it in my name. I don't think I can do any more than I have to improve my financial situation, I have cut down all my outgoings and have cancelled unused credit/store cards.

Any advice/comments would be greatly appreciated, thank you.

Jo

luckyfool

If you were to push me I would suspect that they will refuse. The affordability is tight on your sole name, and by removing your ex they are effectively agreeing to remove someone that they could go after for repayment of the mortgage if you ever defaulted. i.e. There is not much of an incentive for them to say yes I'm afraid. With that income you would have probably have been able to get this mortgage in your own name when you took it out, but Northern Rock income multipliers are alot more conservative now than they were back when they still did Together mortgages. Good luck!

Jo_2k

Thanks, not sure if this makes any difference , but I come out with approx £1600 per month, mortgage is £700 p/m and this is overpaying by £30. My total outgoings are approx £1000 a month including the mortgage which leaves me £600ish p/m for fuel, food and sundries. I thought this would be quite favourable but I am guessing I'm wrong?

If I am unsuccesful, I am guessing I wouldn't be able to take out another mortgage because my earnings are too low for a £118k mortgage?

It just keeps getting better...:(

Thank again,

Jo

Jo_2k

I should really add that there is no equity in my house so don't think there is an option of taking out a new mortgage

Jo_2k

Anyone?? Sorry to bump but I can't believe nobody has ever been in a similar situation.

Thanks

hebe

I bought out a housemate when our house was in negative equity in the 90s. In retrospect it was the wrong decision, he couldn't afford to pay me his share of the negative equity, and I lost more money again when it came to selling as it took years for house prices to recover.

Unless you absolutely have to stay in that house with that mortgage, would it be worth considering selling, splitting the £2k loss between you, then renting while you save a deposit for a new place? I'm sorry not to post something more positive, but this has been my experience and I would have done so much better to have just sold up at the point my housemate said he was moving out to get married. He got a fresh start, I just lost more and more money.