two mortgages

adibranch

Hi all, quick rundown of situation.. and please bear with me as i'm not financially savvy.

Basically, i'm splitting up with my partner, very amicably. we currently have a joint mortgage with unequal shares. Orginally i was going to take over the mortgage house and she was moving out, but being self employed and in a non limited partnership, i've had trouble getting the mortgage and thus are now going to rent another house elsewhere instead.

Anyway, the plan is that she now stays there (i'd like this as we have a child and it will be familiar to him, and the house is in a good area). She will borrow some money from family to reduce the mortage to 50,000 and repay this herself. However, as she is not working (full time mum) then i need to stay on the mortgage/deeds in order for her to get the mortgage from the lender, however i will have zero or very little percentage.

Now, is this a very bad idea? Will i be able to get another mortgage in a years time as i already will be listed on this one? If i stay on, should i insist on say 10% of the house?

I know this may sound like i'm being daft.. but i just want to help out.

kingstreet

There is no "share" of a mortgage. While you remain a party to it, you are 100% responsible for its payments, as is any joint borrower. You enjoy what's known as joint and several liability.

If you want to alter the ownership, you'll need the services of a solicitor and an agreement between yourselves as to what happens if the house is sold, or if either of you die.

Getting another mortgage in future may be problematic as you will be liable for this one in addition to the new one. A lender will ensure you are able to afford both before approving the second.

adibranch

sorry, i meant share of the house. Ie we currently have an agreement saying she owns 60% and i own 40. The plan is to keep my name on the mortgage so she can continue living there, even though i wont be contributing, and my share would drop to 0-10% at most (as i wont be directly paying the mortgage, there seems no reason for me to have a big share in the house). From what you say the shares would therefore be purely a legal issue, ie deed of trust.

kingstreet

Yep. Spot on.