Get ex's name off mortgage with bad credit?

Drysdale

My ex and I have split up and we have agreed to take her name off the mortgage as she has stopped paying and moved out.

Is there a simple way to do this? I cannot remortgage as a single mortgage holder due to affordability criteria but can afford to pay the repayments she was paying - it seems to be purely that on paper due to my credit rating I cannot remortage - I can afford to pay all of it.

I need to get her name off it as if I am paying all of it I dont want her getting any of the profit when I eventually sell the place.

What can I do?

Thrugelmir

Then you need to sell.

By not meeting affordability criteria then you are deceiving yourself that you can afford the mortgage on your own salary.

Drysdale

I have shown the bank I can afford to pay the mortgage with my salary and outgoings - they have said they cannot allow it due to me having bad credit. I am looking at a DMP which is budgeted to include my mortgage. I hve been trying to sell the place for a year with no luck. I just dont want to go another year before I sell it having paid all of the mortgage payments for her to make a claim for a share of the profit

Thrugelmir

Drysdale wrote: »

I have shown the bank I can afford to pay the mortgage with my salary and outgoings - they have said they cannot allow it due to me having bad credit. I am looking at a DMP which is budgeted to include my mortgage. I hve been trying to sell the place for a year with no luck. I just dont want to go another year before I sell it having paid all of the mortgage payments for her to make a claim for a share of the profit

Maintain a record of the payments you have made. Then when you sell the property this can be taken into account.

You will not obtain a mortgage anywhere with a high level of unmanageable personal debt.

Your ex partner will not want the liability of the mortgage around her neck either in the longer term. As it restricts her ability to purchase another property.

chirpchirp

Is your ex in a rush to purchase a new property? If not, she may agree to staying on the mortgage for a while and you could perhaps formalise this as a charge on the property, if this would make her more secure.

Basically you could agree on what the property is worth now, decide how much equity is the property and divide the equity as it is now between you. Then calculate her share of the equity as a share of the gross amount of the house ie the current value. This means her equity can then rise or decrease in line with the property.

This may be costly ( a few hundred) but could ensure you retain your home if you like it so much. She may also agree to a time when you pay her and when she comes off the mortgage for example in 2 year or 5 years.

Obviously this is not in her best interests to do so she may not agree but if you really want to stay it's worth asking.

Thrugelmir

chirpchirp wrote: »

Is your ex in a rush to purchase a new property? If not, she may agree to staying on the mortgage for a while and you could perhaps formalise this as a charge on the property, if this would make her more secure.

Basically you could agree on what the property is worth now, decide how much equity is the property and divide the equity as it is now between you. Then calculate her share of the equity as a share of the gross amount of the house ie the current value. This means her equity can then rise or decrease in line with the property.

This may be costly ( a few hundred) but could ensure you retain your home if you like it so much. She may also agree to a time when you pay her and when she comes off the mortgage for example in 2 year or 5 years.

Obviously this is not in her best interests to do so she may not agree but if you really want to stay it's worth asking.

The OP's creditors may attempt to overturn this course of action if it was adopted. As it could be construed in a totally different light.

chirpchirp

Thrugelmir wrote: »

The OP's creditors may attempt to overturn this course of action if it was adopted. As it could be construed in a totally different light.

In what light could it be misconstrued?

Edit: I forgot to mention that they would need to ask lender if they would allow a charge on the property.

Thrugelmir

chirpchirp wrote: »

In what light could it be misconstrued?

Preferential allocation of equity in the property.

Drysdale

Thankyou to all who have replied so far..

I think it is fair to say that physically removing her name from the mortgage isnt going to happen. We have been trying to sell it for over a year and several estate agents have advised me that we wont be able to sell for at least anothef year maybe longer. I cannot afford to lower the price as it is a 100% mortgage in negative equity and is maybe wortg around £20k less!

I think the concern is not what stake of equity she can claim when it does sell but her joint liability if rates go up and i cannot keep up with payments.

Is there any way I could draw up an agreement with a solicitor that is acceptable to banks where she forfeits any equity and I claim sole liability for any unpaid paymebts despite her name being on the mortgage??

beecher2

There's no equity for her to forfeit - I don't see any benefit to you in drawing up an agreement. If you were able to take on the whole mortgage she should be paying you half the negative equity. You do need a proper plan in place as if EA are saying it'll take over a year to get out of negative equity you can take it as read that it'll take a lot longer.

Can you get a lodger in to help cope with the payments? Ultimately your ex will have to stay on the mortgage and be jointly and severally responsible for the payments.

Trollfever

you can take it as read that it'll take a lot longer.

= Several years.

Focus on paying down debts.