Removal of an ex partner from a mortgage

Scott1971

I have been trying to remove my ex girlfriend from a joint mortgage but my bank are telling me that she cannot simply be removed and that the property has to be revalued, and an entirely new mortgage in just my name with a new value has to be drawn up....

Is this correct ? I only want a my ex girlfriend removed, she's agreed and has no interest in the property and I have a letter to that effect.


Finance is not an issue as the mortgage is not even 2.5 times my income.

Why is the bank saying that I have to get a new mortgage? Is this correct or are they just trying to profit out of me because they know that the propertys valus has gone down - they are telling me I have to settle the difference between the original mortgage value and the new lower mortgage value reflecting the fall in the propertys value.

Can anybody help and advise ? Any help would be much appreciated

meer53

Your bank is correct. You will need a new mortgage in your sole name, the old mortgage will need to be repaid and a new application made.

Scott1971

Thanks for reply there - I just can't get my head round why a piece of paper cant just be printed up minus one name ! Flats value has plummetted by 25k over last 3 years so at lot of money at stake.

Do you know if they would incorporate the difference into the new mortgage repayments so it can be paid off over the next 25 years as opposed to taking out a loan or having to cough up 10's of thousands up front ?

Also what do the last 5 years of mortgage payment count for - does that money figure anywhere in the calculations for the new mortgage?

CLAPTON

your current mortgage was granted on the basis that two people were responsible for the mortgage and are on the deeds of the house.

to remove the other person will require the deeds to be changed and a new mortgage subject to their current lending criteria to be agreed; some companies charge a lot for this others charge a little.

subject to valuation and lending criteria you can remortgage with any one that will accept you and have no need to stay with your present lender.

your payments for the last 5 years will have reduced the amount you owe them and so reduce the amount of the new mortgage

Thrugelmir

Scott1971 wrote: »

Thanks for reply there - I just can't get my head round why a piece of paper cant just be printed up minus one name ! Flats value has plummetted by 25k over last 3 years so at lot of money at stake.

Do you know if they would incorporate the difference into the new mortgage repayments so it can be paid off over the next 25 years as opposed to taking out a loan or having to cough up 10's of thousands up front ?

Also what do the last 5 years of mortgage payment count for - does that money figure anywhere in the calculations for the new mortgage?

So its not just a piece of paper. You and your ex borrowed more than the property is now worth. The banks wants to ensure it gets its money back. What's unreasonable about that?

By retaining your ex on the mortgage they have more security for the debt. Has never been any different.

Scott1971

Cheers for the feedback everybody - really appreciated

I think I'm going to have to act now because if what I'm seeing in various artucles is to believed values may continue falling for the next 3 years - talk about buying at the wrong time !