Mortgage following divorce

willmott77

Within the financial settlement it was agreed that as my ex was not paying towards the house and had not been for sometime that I would keep the house.

I contacted the bank and applied to transfer the mortgage. As my ex had been wreckless there was a lot of debt and the bank said although I could afford it on my salary because of the ratings they would only agree to a transfer of equity as suggested to protect me from potential claims later. They told me to sort the consent order then this could be sorted.

12 months and 5k later, I phone them clutching the agreed and court stamped order that clearly states the house to be transferred to me. I was not surprised that they still refused the transfer of mortgage as the credit reference agent they used refused to eliminate the association as we still had the joint mortgage (catch 22). However, they then contradicted the original advice saying that they dont do a transfer of equity without the transfer of mortgage and the credit rating meant it had been declined.

What can I do? The likelyhood is that eventually my ex will go bankrupt as he is still stupid with money.

Thanks

Simon_gloster

Who is the lender?

Thrugelmir

Underwriting criteria has tightened considerably in the past 12 months. Mortgage terms can change overnight. A different market now to then.

If you are unable to afford the mortgage in your own right. Sell the property and consider other options.

Simon_gloster

If affodability is an issue, I know of a lender who will consider the removal of a name off a deed, but name remains on the mortgage upon proof of a court order.

Obviously usual caveats that its not as straightforward as this but its a different apptroach to a difficult situation.

As you say though, if the lender doesnt want to do it, they dont have to.

jamesd

Complain to them saying that you acted in good faith based on their initial advice and did what they requested in that initial discussion.

Mention that you anticipate the ex heading into bankruptcy and that you're also interested in protecting their security from any risk of charging orders if that happens and he's still shown in any way as having an interest in the property.

Mention that this mortgage is now the only financial association between the two of you (if it is) and ask them to ensure that their decision-making is no longer using his credit behavior but only yours.

Ask them to reconsider based on your past record of paying the mortgage on your own since (whenever that started) and your own individual credit record.

If they still decline, post again giving their reasons and it's likely that the suggestions then will be a complaint to the FOS.

Thrugelmir

jamesd wrote: »

Complain to them saying that you acted in good faith based on their initial advice and did what they requested in that initial discussion.

A year is far beyond what anybody would consider reasonable if a complaint was lodged. A lender is not obliged to advance money. There was never a guarantee.

jamesd

I don't consider it unreasonable to ask them to reconsider the facts and actions of the prospective borrower, showing them acting as agreed and asking the lender to take a second look at the decision. They are required to treat customers fairly, after all, and this borrower has presumably demonstrated the practical ability to maintain the payments and dissociation from the person with the negative credit history that they seem to be using as the reason for the decline decision.

NAR

willmott77 wrote: »

Within the financial settlement it was agreed that as my ex was not paying towards the house and had not been for sometime that I would keep the house.

But OP allowed this situation to continue as an increasing joint debt (presuming property was in joint names). So why would the credit reference agent allow the transfer; there is no proof as to who is responsible for the debt.

jamesd

Other than the fact of the divorce and the credit records of the two individuals concerned, of course. That's probably plenty to show their individual conduct.

Simon_gloster

jamesd wrote: »

Complain to them saying that you acted in good faith based on their initial advice and did what they requested in that initial discussion.

Mention that you anticipate the ex heading into bankruptcy and that you're also interested in protecting their security from any risk of charging orders if that happens and he's still shown in any way as having an interest in the property.

Mention that this mortgage is now the only financial association between the two of you (if it is) and ask them to ensure that their decision-making is no longer using his credit behavior but only yours.

Ask them to reconsider based on your past record of paying the mortgage on your own since (whenever that started) and your own individual credit record.

If they still decline, post again giving their reasons and it's likely that the suggestions then will be a complaint to the FOS.

Not quite sure the threat of bankruptcy would make a lender squeal, they have first charge over the property.

As I said, if a lender doesn't want to do it, no-one can force them.