Dealing with divorce

roughyed186

Hi
Sadly my wife and I are seperating, I am off to see a solicitor tomorrow morning but was hoping somebody maybe could offer some advice. We have just changed our mortgage (2weeks ago) to a fixed rate 2 year deal with the royal bank of Scotland in joint names. If I wanted to change this to my name only would that be the same as changing the mortgage and therefore having to pay the penalty charges. Its a real mess as i am pretty sure when the calculate my salary alone it's unlikely they will offer me a mortgage that will cover the amount we owe. I guess its very naive of me to expect they will just change the mortgage to my name without going through a reapplication.

Dave_Ham

Hi there,

I am sorry to hear about your situation. All too often this happens and can prove to be financially and emotionally costly.

Unfortunately, you have answered your own question and even more so you got the answer right.

They will reapply on your sole specifics, subject to your wife agreeing.

It is not unusual in these circumstances to try and broker an agreement that would leave your wife staying on the mortgage for 2 years as part of the divorce. It would then give you 2 years to straighten up any loose ends and seek to make you more attractive for a new lender in 2 years time. Obviously there are many variables within this around equity, potential buy out to wife, any maintenance (kids) if applicable although all of this will be in your wifes interest also.

If the solution was you could not transfer into your name and your wife insisted to be removed, you would sell a property at assuming locally to you at a very poor time and for a lower price. Either she will receive less monies, or if close to negative equity you may jointly owe the bank upon sale.

Depends on the relationship state, but the more of the practicalities you can arrange between yourselves and present to the solicitors as the solution, the lower your joint costs will be...

All the best...

roughyed186

Many thanks for the reply, it's a nightmare to be honest but the one thing that might save us is if we can broker an agreement it's going to be incredibly tough but at least your advice gives me an idea where I stand..