What happens to mortgage in relationship breakdown?

kingstreet

tododo wrote: »

I have advised my sister that I dont personally think she can afford the mortgage on her own - shes taking about 20k

I have said that she needs to be on like 40K+ to get anywhere close to a mortgage around the 148K mark

You're right. A minimum net profit of around £35k is needed. A lender would be mental to remove her former partner when she plainly cannot "afford" it by any sensible measure.

I think its close to about £700 a month now and thats on a decent variable rate - obviously this could have potential to increase quite dramatically at some future point

Sadly, that may be true. Unfortunately, all she could do is ask the current lender if there's another product she could transfer to...

Hes now turned around and stated hes going to default on the mortgage - not sure if thats the right term but anyway - my initial thoughts on that is that is that t sounds stupid - as will screw all credit files and as hes got a 1 bed flat it could possibly affect that too

He's jointly and severally responsible for the mortgage. If no-one pays then both credit files are ruined. Your sister will probably pay and save them both. Sometimes, that's the price of keeping the roof over your head. His current tenancy won't be affected, but a future let may be.

My questions are really:

Can my sister go on paying mortgage with two names still attached (again sounds ridiculous to me - as he could then claim what shes putting into the mortgage - or can there be some "agreement drawn up")

Yes. She can continue to pay for "both of them." You can't draw up an agreement without both parties "agreement" but if it ever ends up in court, the fact your sister paid everything for x amount of time would ultimately result in her getting the lion's share of any increase in the value.

Also when you remortgage to a new provider they need evidence of your current pay dont they?

Indeed. They do. In the case of the employed, it's normally three months payslips and bank statements, for the self-employed the normal minimum is two years' SA302s or two years accounts plus three months bank statements. A clean credit and mortgage payment history is also essential.

Thrugelmir

Sleazy wrote: »

If he didn't contribute to the deposit, why should he effectively benefit from it now? If there is written documentation regarding the deposit, so much the better.

No deed of trust. Then down to negotiation.

Seems the best solution is to sell the property.

Then approach the CSA.

tododo

Brill thanks all