FTB Questions

Mikeysoft_2

I split up with my ex over 2 years ago and apart from child support, had no financial link with her or so I thought.

Did a credit report the other day to find out the mortgage and deeds still have my name on them.

Yorkshire Bank have said I'll be classed as a FTB if I haven't had a mortgage in the past 12 months. Would the fact that this shows on my report stop that?

They could see I have had no dealings with the house or mortgage during that time.

Alternatively, the plan is to get a joint mortgage with my partner. She is 100% a FTB. Would my name being on the application stop us from getting FTB deals?

Thanks guys

herbiesjp

You are not a FTB as your name is on a property.

Different lenders have different ways of classifying "FTB" status - but the fact you are named on a mortgage/deeds means that you are still legally responsible for that mortgage.

As such, any new mortgage you look to take out will be affected by that commitment (and any others) you have in the background.

You would need to get taken off the mortgage via a transfer of equity - that is assuming your ex can support the mortgage on her own, otherwise the lender will not let you come off the mortgage.

Leon_W

There are a couple of issues here and the first is pretty easy to clear up.

As you have had a mortgage before you are not a FTB and if you were to buy with your new partner then neither of you would be treated as a first time buyer. This mainly has stamp duty implications rather than FTB "deal" implications as, quite frankly, there are not many "deals" to be had as a FTB.

More worryingly is the fact that you are still party to an existing mortgage and named on the deeds. Effectively this means that if your previous partner defaults then it is you that is laible for the payments. This will seriously reduce your borrowing capacity with lenders as it is seen as a commitment and affordability will be considerably reduced.

You will need to get your previous partner to buy out your share of the property to rectify this. The fact that you have had nothing to do with paying the mortgage or anything to do with the house for 2 years does not let you off the hook.

Mikeysoft_2

Could I for example get her to buy out my share of equity for a nominal value? Would this need to be done through solicitors or could we deal with the mortgage company direct?

herbiesjp

All done via solicitors - but however you do it, the lender has to be happy the mortgage is affordable to your ex in her own right.

Mikeysoft_2

That shouldn't be a problem as she's been paying it herself for the past 2+ years. I'm not interested in any of the equity from the house, just want clear of it!

Having just spoken to Yorkshire Bank, they've said as long as one of us on the mortgage application is a FTB, we are eligible for the FTB deals which is nice