Single name mortages

mjf001

Hi, would anyone be able to help me out with some information. I'm currently in the middle of getting a divorce & I am living in the family home. My wife moved out 2.5years ago & as of that time I've paid all bills associated with running a house. My wife is happy for me to keep the house but Northern Rock are telling me that due to my bad credit rating I need a second name on the mortage before I can take my wifes name off it. Does anyone know if there is a legal way around this or does anyone know of any mortage lenders that offer single name morgages? Thank you in advance.

holly_hobby

It is your credit rating that this causing the problem, depending upon the severity (are we talking defaults, CCJs, IVAs or a combination), this will prevent you from remortgaging in your sole name to most "high st" lenders.

You may fit an adverse lenders criteria - and will need the services of a whole of market broker to really bottom this out for you. (as they will have access to both lenders and mortgage sourcing software, giving them a heads up as to who are current players in this market).

The alternative, if your ex wants off the mge regardless, would be to sell the property and for you to go into rented, until your credit hitory improves (defaults/ccjs will be removed with CRAs, following their 6th anniversary of registration).

Hope this helps

Holly

Thrugelmir

You need to address the issues surrounding your "bad credit rating".

Firstly determine what they are.

kingstreet

All lenders offer "single name mortgages" but that's not really the issue.

A lender won't remove a borrower from a mortgage if by doing so it weakens its position because the remaining borrower is perceived to be a higher risk. NR is trying to help, without increasing its risk.

What you need to know is if there's a lender which will accept you as a mortgage applicant with your credit problems.

The answer is yes, but we'll need to know what the problems are, type, size, date etc, plus we need to know your income and how much you need to borrow/value of property.

mjf001

Hi, thanks for your post.

What do you mean when you say 'need to know the problems'? Type, size date etc? I can provide income details when needed. I earn £28K but can give you a breakdown of outgoings. I owe approx £83,500 on the mortage as of Sept 2011. I'm not sure of the value of the property though. The bad credit rating comes from credit cards/store cards etc that myself & my ex-wife had but were in my name as she wasn't working at the time.

mjf001

Hi, thanks for your post.
My bad credit rating came from the credit cards/store cards/loans we had when my wife was not working, so late payments and such.

kingstreet

If I tell you one lender has a rule like this;-

CCJ - maximum of 2 in the last 24 months (satisfied over 6 months ago). Total max. £750

Defaults - maximum of 2 in last 24 months (0 in last 6 months)

Secured - no missed payments in last 24 months

Unsecured - all non-defaulted agreements must be up to date at time of application

you'll hopefully understand a broker will need to know all about your adverse credit entries.

In fact, what I suggest you do is obtain your credit file from all three credit reference agencies (Experian, Equifax and CallCredit) and when you get them, make an appointment with a whole market broker, taking the reports along with you when you go.

Finally, the most important information needed is the amount required to redeem your current mortgage and a realistic valuation of your property. The broker may be able to assist with the latter using HomeTrack.

Conrad

Kensington might be able to help you - they can accept a degree of adverse credit. The rate will likely be higher than Northern Rocks and you'll need at least 15% equity.

Thrugelmir

mjf001 wrote: »

Hi, thanks for your post.
My bad credit rating came from the credit cards/store cards/loans we had when my wife was not working, so late payments and such.

Have you now cleared the debts?