mortgage on benefits??

mumtomolandroo

My husband and I separated 3 years ago, he moved out, we're now divorced. I have a court order for him to sign the house over to me, he's racked up huge debts since we split, has an IVA and his creditors were looking to the house to get the money he owed so I need to get his name off the deeds to protect my home.

My mortgage provider (nationwide) have given me a transfer of equity application form which i have to complete, this is going to cost £150, but have said that because i'm not working (i have a chronic illness so am unable to work and receive long term incapacity benefits) its unlikely i'll be able to renew the mortgage in just my name........ i've faithfully paid the mortgage for the 3 years since my ex-husband left, in fact I overpaid it for those 3 years !

There are 17 years left on my mortgage, an outstanding amount of £38k and there is about £130k equity in the house.

I dont understand why they cant just transfer the legal title to my name and why am i being asked to complete this form to re-apply for a mortgage when they've told me I probably wont be accepted?

Chinkle

Harsh though it may seem the mortgage company need to be assured that you can pay the mortgage on your own.

Just because you have been doing so till now is not enough for them to be confident you can continue to do so. The problem with benefits, particular at the moment with Government cutbacks, is there is no guarantee that your income will not be reduced or withdrawn.

If you are relying solely on your benefits to pay the mortgage I'm afraid they are very likely to reject your request.

themull1

The Nationwide will assess your income to see if you can afford the house, the transfer fee to Nationwide is £150, the solicitors fee to take his name off the deeds etc is around £450, and if you need insolvency indemnity insurance it will be about another £150. My husband left me in January, and i did the transfer of equity through Nationwide, they do take benefits into account, and may ask you to extend the mortgage again to make it more affordable(depending on your age!)

I work part time, and get ctc, wtc and child benefit and it was all taken into account. I would initially make an appointment to go to a branch, or to get a rough idea if you meet their affordability criteria, there is an affordability calculator on line.

Conrad

You need a lender that accepts benefits as income. Thankfuly there are a couple, but rates and so on depend upon your own credit history. What benefits are you on and what are the sums inolved?

mumtomolandroo

thanks for all your help, i've completed the transfer of equity form, given them proof of income and provided them with 6 months worth of bank statements, my health isnt going to change so will be relying on benefits so all i can do now is wait and see what happens.