worry or not?

kpwll

Cutting a long story short, my daughter and her partner jointly bought a house in 2001, repayment mortgage, renewed fixed rates when needed.
They split in 2008, my daughter staying in the house with the 2 children they now have. She only works part-time for NHS but, apart from sporadic payments towards children's upkeep, she was paying all the bills herself. Her ex (who was still on the mortgage) was made redundant and because they had insurance, the mortgage was paid. He now has another job and the mortgage is now being paid by my daughter. While the insurance was paying the mortgage, the fixed rate ended and she has been called in for a meeting with a mortgage advisor.
I am going with her and need any relevant and useful information I can get.
What, if anything, can they do to/for her regarding the mortgage?
Will it count for or against her that ex has gone?
As there have never been any arrears will they still see her as a good risk or demand payment in full?
Can they take the mortgage away from her?

These are the sort of things that I need to know as well as any other helpful ideas/information/advice you can think of. Thank you.

Sorry, it wasn't such a short story after all.

themull1

What does your daughter earn/get in tax credits etc? how much is the mortgage? she might not be able to have his name taken off the mortgage, but if thats the case she should be able to stay in the house until the kids finish school. or if her salary is enough, she and her ex could decide to do a transfer of equity, where she takes over the mortgage herself - thats what i'm doing at the moment.

kpwll

She gets, all in, about £14,000, the mortgage is around £55,000. She is not asking for his name to be taken off and he has been somewhat willing to leave it on until the 4 yr old leaves school.
We are just worried that they may say that as she is not earning enough they will not allow her to continue with the mortgage on her own, or will expect some sort of guarantor. Also that they may not give her an advantageous rate.
Good luck with yours.

The house is worth around £100,000 due to the house prices dropping in our area.

kingstreet

While the insurance was paying the mortgage, the fixed rate ended and she has been called in for a meeting with a mortgage advisor

What reason was given for this meeting? Had she previously contacted her lender about the situation? Have the payments gone up or down since the end of the fix?

I'm guessing, but I reckon the adviser is planning to sell her a new product now the fix has ended and the minute her circumstances are revealed, the meeting will be over. I'd ring and ask the purpose of the meeting before you drag yourselves down there.

To ease your mind, they cannot take your daughter's mortgage away, or demand it be repaid or a guarantor included.

Given her circumstances, what would she like to happen/do at this time?

kpwll

I'm not sure of the reason, I'll check with my daughter and get her to ask. She would like to have another fixed rate so she knows exactly how much is going to go out every month. My main worry was that they could take some form of action now that her circumstances have changed and the household income is a lot less.
Your reply has eased my mind, thank you.

dimbo61

as long as your daughter pays the mortgage each month then there is not a lot the lender can do !
But this does not sort out the divorce and assets from the house/pensions or give your daughter security and her EX wont be able to move on and buy another property while still on the existing mortgage.
Her income should cover the mortgage! but what does her EX want as his share of the equity?
Has he got an pensions as she has a ( small NHS one)
Maybe now is a good time to sort out her life as after 3 years she may want to move on with her life.
Are you in a position to act as guarantor ? some lenders take into account benefits and maintence

kpwll

Like many these days they never got round to the wedding, just the engagement, house and kids, so pensions aren't an issue. He has already moved on and started another family, same situation just no mortgage this time.
We (parents) are not in a position to act as guarantors as we still have a mortgage ourselves and are coming up to retirement age.

dimbo61

I hope your daughter can get her EX off the mortgage and off the deeds.
Time to see a solictor and hopefully get security of ownership