Defaulting on mortgage repayments

Miss_Havisham

Apols if not on the right board, I'm new on here and still finding my way around. Apols also if I've given too much/too litle info or it's not clear.

I'm asking for a relative of mine who divorced his wife but his name is still on the mortgage. Joint and several liability but she pays the full amount - interest only. The divorce settlement split the house 40/60 in ex wife's favour. Nil or even small negative equity.

Obviously ex hubby would be liable for the whole mortgage if ex wifey can't/won't pay but what actually happens ? He has no savings, is living with his girlfriend, has a decent job and will get a decent pension (although ex wife gets half under the div. sett), but a lot of personal debt from the marriage (as does ex wife). All the children live with their mum but are nearly 18 or over.

How would the mortgage company get the mortgage payments / full repayment from the ex husband if he doesn't have the money ? Would they seize his monthly salary, and how much would they "allow" him to keep from it for day to day living ? Presumably they'd go down the bankruptcy route ? Could they enforce the sale of the house once the youngest child turns 18 ?

The mortgage supplier (a bank) is not very helpful toward him, they are dealing with the ex wife but as she won't let him attend the appointments nor tell him what they have discussed and what she plans to do he has no idea what's going on.

Would be grateful for any comments/advice or pointers as to where he can go for accurate info.

Thank you so much

Miss H

Gary123456790

Ideally you need to get the husband removed from the mortgage. This is done basically by the wife applying through the current mortgage provider to put it into her name only. This would involve affordability/credit checks etc so is not completely straightforward.

Otherwise as you suspect the bank will come after him for the money if she does not pay. They cant seize his income but he is liable for the debt as much as she is.

Whilst he is still listed on the mortgage it will affect his ability to borrow other money (i.e. get another mortgage) any will affect his credit report if she defaults.

Gary.

DVardysShadow

Miss_Havisham wrote: »

The mortgage supplier (a bank) is not very helpful toward him, they are dealing with the ex wife but as she won't let him attend the appointments nor tell him what they have discussed and what she plans to do he has no idea what's going on.

I think he should write to the lender and demand politely but firmly to be included in all meetings, updated on discussions to date and copied in on all correspondence.

antrobus

Miss_Havisham wrote: »

...Obviously ex hubby would be liable for the whole mortgage if ex wifey can't/won't pay but what actually happens ? He has no savings, is living with his girlfriend, has a decent job and will get a decent pension (although ex wife gets half under the div. sett), but a lot of personal debt from the marriage (as does ex wife).

Is there are any reason to suppose that the ex-wife is likely to default?

Miss_Havisham wrote: »

... Could they enforce the sale of the house once the youngest child turns 18 ? ....

They could repo the house now, if there were arrears, and a court gave them leave. I don't think the age of the children has any effect on what the lender can or cannot do.

Miss_Havisham wrote: »

...The mortgage supplier (a bank) is not very helpful toward him, they are dealing with the ex wife but as she won't let him attend the appointments nor tell him what they have discussed and what she plans to do he has no idea what's going on.....

Well the bank is in a difficult spot. They still owe a duty of confidentiality to their customer (the ex-wife) and thus can't go around releasing info to someone else, even if they are also a customer and have a financial interest in the the other customer's dealings.

DVardysShadow wrote: »

I think he should write to the lender and demand politely but firmly to be included in all meetings, updated on discussions to date and copied in on all correspondence.

So I don't think that'll work. The bank will politely but firmly decline.