Can a mortgage company make you sell your home if your circumstances change.

Jax999

Hi

I was wondering if anyone could give me some advice ... I have had my mortgage for about 18 months and I have now had a change of circumstances that I am worried may change my eligibility to have the mortgage.

The mortgage is joint with my ex partner who moved out bout 3 months ago - I have also recently taken redundancy and have had to sign on whilst I look for other work. I can pay the monthly payment quite easily - but the job centre is insisting that I apply for help with the payments - although I said I didn't need help they have said any other financial help I get will be affected if I refuse it (which seems mad to me!!)

The upshot is they insist that my mortgage company be informed - my ex-partner is currently happy to remain on the joint mortgage - but is there any chance the bank will see that he has left the property and there is now only his wages (which are not enough to 'afford' the mortgage using their mortgage calculator) and say the mortgage is no longer valid??

Sorry to be so long and complicated and I hope this makes sense.

maninthestreet

You can't be forced to apply for benefits, AFAIK.

Voyager2002

No, once the mortgage has been given the lender's main concern is that you maintain the agreed payments. They would only be concerned if you decided to let the property, or perhaps if someone came to live in the property who was not named on the mortgage.

Anyway, it does make sense in your situation to apply for government help with mortgage interest.

holly_hobby

Only if the original application was fraudulent.

Peoples circumstances change, they can't be forseen by anyone, and your mortgage lender certainly won't punish you for such events having taken place.

If you are entitled to mortgage assistance, take it, it would also be a good idea to let your lender know your financial situation. Of course you may feel that as you have been maintaining your payments without issue, what is the point .. but that IMHO is the whole point. That despite finding yourself in a difficult financial position, you have endeavoured, and indeed have continued to maintain your mortgage, despite such circumstances, without fault or any instance of arrears.

Then if you do need to ask for mortgage assistance from your lender, i.e a temporary reduction to monthly payments, they can see that you have not made this request either lightly, or without consideration, having maintained your payments up to that point, whilst being in the same financial position - it can only reflect well on you account management.

Hope this helps (good luck with the job hunting !!)

Holly

Jax999

Thank you for the positive comments! Not the best time to be looking for a new job that's sure! I phoned my mortgage company (anonymously lol) and they have said that as long as the ex-partner was happy to stay on the mortgage it should be fine, but if he changes his mind and I couldn't 'afford' the mortgage (according to their mortgage calculator) I would have to sell - which seems a little harsh to me if I am paying the monthly payments regularly.

holly_hobby

Well, you would only have to sell (if you refused on the request of your ex), if your ex obtained a court order - or of course the mge went into 3+mths arrears, when the lender has the right to apply for a repossession order.

But that hopefully won't occur.

Talking jobs - I have no idea obv what your background is, but its christmas season and all the big shops are taking temp staff on M&S etc - could be helpful it taking you through xmas and the expense we all incur

I wish you well

Holly x

DVardysShadow

jax999 wrote: »

.... I phoned my mortgage company (anonymously lol) and they have said that as long as the ex-partner was happy to stay on the mortgage it should be fine, but if he changes his mind and I couldn't 'afford' the mortgage (according to their mortgage calculator) I would have to sell - which seems a little harsh to me if I am paying the monthly payments regularly.

No, this is wrong information. As long as you pay your mortgage, that is the end of the matter. They would have to get a court order to repossess. And to get a court order they would have to show that you had defaulted. Now you have a mortgage, any affordability calculator or calculations is dead and buried. A court will never grant a repo for failing to meet an affordability calculation.

The only difficulty may arise if you want to take up a new deal, when you will have to go through affordability again.