Taking mortgage on in own name following separation

CLL78

Hi all,

I've recently separated from my husband and he has agreed to sign our house over to me (after I have paid out his equity).

How would I stand with the mortgage in this situation? Obviously, I would need to contact our lender, Abbey, but I wouldn't be able to afford all the expenses of running the home on my salary alone.

I have, however, got someone who would be very keen to rent a room from me for £125 per week (bills included) and have guaranteed part time work after Christmas (£200 extra per month). This would mean that I am able to cover all expenses easily as it would be an extra £700 per month. Would the Abbey take this into consideration in allowing me to keep the mortgage in my sole name? I have this fear that most lenders will just work from my salary without looking at the fact I would have this extra income, as it isn't proven yet.

Many thanks in advance!

Thrugelmir

CLL78 wrote: »

How would I stand with the mortgage in this situation? Obviously, I would need to contact our lender, Abbey, but I wouldn't be able to afford all the expenses of running the home on my salary alone.

Either you can or you can't.

Some decisions in life are painfull.

CLL78

Thrugelmir wrote: »

Either you can or you can't.

Some decisions in life are painfull.

Cheers for the response, but as I said I would be able to afford it easily with renting out a room and additional income. This is the real issue I'm unclear as to whether it would be taken into account.

Otherwise, I'll naturally have to sell up.

superhez

Hi there, I've just gone through this and had the mortgage signed over into my own name.

I had to show to my lender that I could afford the mortgage myself before they would let me take over the mortgage, luckily Nationwide who I am with took, my salary, maintenance, tax credits and child benefit into account which I know all lenders don't.

I had to show proof of all this income, ie maitenance going into my acc (and a signed letter from ex), tax credit paperwork, payslips, if you were renting out I think you would have to have someone with a signed tenancy before they would consider the income, hope that helps.

CLL78

superhez wrote: »

Hi there, I've just gone through this and had the mortgage signed over into my own name.

I had to show to my lender that I could afford the mortgage myself before they would let me take over the mortgage, luckily Nationwide who I am with took, my salary, maintenance, tax credits and child benefit into account which I know all lenders don't.

I had to show proof of all this income, ie maitenance going into my acc (and a signed letter from ex), tax credit paperwork, payslips, if you were renting out I think you would have to have someone with a signed tenancy before they would consider the income, hope that helps.

That's really helpful, thanks so much! I'll have a word with the Abbey, hopefully they'll be as good as your lender and I get approved with a tenancy agreement and letter confirming part time job :beer:

dimbo61

Hi CLL78 I doubt if ABBEY would take into account money you might earn with another part time job and also having a lodger !
They will look at the plain hard facts
how much do you earn including child benefit, WTC,CTC, maintenance (CSA or court agreeded)
the size of the loan required and the LTV ( loan to value)
Good Luck

CLL78

dimbo61 wrote: »

Hi CLL78 I doubt if ABBEY would take into account money you might earn with another part time job and also having a lodger !
They will look at the plain hard facts
how much do you earn including child benefit, WTC,CTC, maintenance (CSA or court agreeded)
the size of the loan required and the LTV ( loan to value)
Good Luck

Hi Dimbo61,

Have spoken to Abbey (or Santander as they are now!) tonight, they have said they will only take into account the rental income after 6 months of rent being deposited into my account and also a tenancy agreement (expected the tenancy agreement but not the six months bit!)

Had a chat with hubby (luckily we are still on good terms!) and we are going to see financial advisor about our options -- may be that I rent out for six months with hubby still on mortgage to get required proof. Not as clear cut as I would have liked but can understand why they need that evidence!

Thanks everyone for your help!

CLL78

Ps forgot to add, LTV is fine (69%) as am not taking out additional borrowing. It's a bit frustrating as mortgage payments are less per month than renting a terraced house!