Help - Removing a name off the mortgage

Helpimafish

I recently got divorced and part of the settlement is that i will retain the family home, my solicitors have said I need to have my ex husbands name taken off the mortgage, when I went to see my mortgage company they told me a new law came into effect a couple of years ago that prevents people from removing names off mortgages and instead i will have to take out a new mortgage. Sadly the interest rates offered are no way near as good as my current deal and i will be paying a lot more money for the same borrowings. Is this right, is there such a law? Help!

kingstreet

I can't think of a new law which affects you.

This is a simple transfer of equity where a solicitor would handle the removal of your former husband from the mortgage and the title to the property.

However, you would have to demonstrate to your lender your ability to service the mortgage payments on your own as if you were approaching them as a completely new borrower. Remortgaging allows this process to take place during the mortgage transfer, but of course you have to be able to justify the mortgage with the new lender as much as you did with the old.

With lending criteria tightened since you took out your mortgage and falls in house values, this may not be possible at this time.

Helpimafish

Hi, basically I want to keep the amazing deal we were on. I earn enough to meet the requirements to cover the repayments on my own, but my mortgage company are saying I would have to end my existing mortgage at 0.5% and go onto their new deal at 2.99% - costing me an additiona £120.00+ per month - not the kind of thing you want to hear when bringing up 3 children on your own. She says the 'law'!? doesnt allow them to remove names. Am i being led up the garden path here??

System

I can see the mortgage company's POV. That mortgage deal was taken out by you and the OH. The deal is terminated if either you or the OH is removed, you therefore have to negotiate a new deal.

Helpimafish

I think this is where I am getting confused as people keep saying/and i also keep reading about taking people off the mortgage - but surely this isnt the case and you have to simply remortgage alone, so why dont people just say so. Whats nagging me is that i went to see my mortgage company today and she said that they can't keep me on my current mortgage because of a law that has brought in in the past couple of years to prevent this happening? I rang the FSA and they knew nothing of it and I cant see anything in my original paperwork to support it either.

Trollfever

because of a law that has brought in in the past couple of years

No new law.
Probably works for one of the taxpayer owned mortgage lenders who have decided that they are now only interested in prudent lending!

dimbo61

There is no law just BS from your lender ! they want you off the 0.5% deal you are on at the moment.
If they wont take your OH name off the mortgage then carry on paying the mortgage each month and wait and see.
Your EX may also want off the mortgage as he will also want to buy somewhere else and cant while his name is on the family home.
He wont win if he tries to force a sale ( courts wont allow you to be homeless with 3 kids)
Does he get a share? and can you/he wait until the kids are older !
Build up your savings seperate from the mortgage and when prices/values do start to rise you may be able to move to another lender

themull1

Im doing a transfer of equity at the moment and i kept my mortgage. There is no new law. Ask them for proof of this new law....

System

I think that they are talking BS about the new law. however, the original contract is with the OP and OH. If one of them comes off then the contract can be considered to be terminated. The OP would need a new mortgage.

It is up to each lender whether they allow the mortgage to continue or insist on a fresh application.

Wh05apk

Cobblers! I suspect the sales person you are dealing with is either incompetent, or pushing you to a new deal so they hit their targets, you are on a good deal, do not give it up.

It is nothing to do with the lender wanting to move you to a more profitable deal, the salesperson will not give a monkeys about the profit margin, this is straight incompetence.

I suggest you try another route/branch, failing that put in a formal complaint.

Who is the lender?

System

Doesn't get away from the fact that the lender, if they so desire, can insist that you take out a new mortgage