Remortgage in wifes name only

beachball_2

Currently, my wife and I are both on the mortgage and on the deeds. We need to remortgage but this has turned out to be impossible due to my having bad credit from a few years ago. The reason we need to remortgage is that our current mortgage (5yr, interest only) has reached the end of it's term and we want to switch to a repayment mortgage for the same amount. Together we run a ltd co and own 50% shares each, decent 3 year accounts available.

My wife has obtained an agreement in principle as the sole applicant for a new mortgage. In 2 years, the bad credit will drop off my file and we can put things back to normal.

Basically, we want to proceed on this basis, but before she makes the full application, I'm guessing we need to get my name off the deeds and the current mortgage because I can imagine that once the underwriters see my name on the current mortgage and land reg info, they'll decline or start asking questions, etc.

Is this possible and am I thinking on the right lines?

James

Thrugelmir

What options has your current lender given you?

As there's no new credit checks if you remain.

beachball_2

The existing lender isn't being helpful. I've asked 3 questions and they answered no to all:

a) Can I switch to a repayment mortgage over 25 years.
b) Can you extend the current IO term for 2 years.
c) As b, but with me paying the whole 2 years up front.

The reason they give is that since I took out the mortgage for 160k, their criteria has changed and the min mortgage they do now is 500k (it's Coutts - I once had money but lost it in a major investment disaster in 2008/9). If I could only get them to extend for 2 years, my credit file will be clean at the end and all would be well.

They said "the existing term can't be extended, unfortunately", even though they themselves had extended it by 2 months in order to give me time to try and remortgage.

My wife had 2 applications in, in her name only with two Building Societies. The first (Leeds) was rejected yesterday due to "undisclosed commitments". All she has is a small credit card balance and that had been provided, so not sure what that was. The other we are awaiting a decision on.

I think the bank is being unfair in not extending for 2 years, especially as I was originally on a 25 year repayment mortgage until I switched to them and they suggested 5yr interest only. Is it really so difficult for them to do this, or is it worth me continuing to try and change their mind?

Thrugelmir

When does your mortgage term actually end. Not your product term which I think your are referring to.

Suggest you start overpaying to reduce the debt owed.

beachball_2

Officially, it ended on 26th Feb. They extended it to 30th April (8 days from today).

Thrugelmir

beachball wrote: »

Officially, it ended on 26th Feb. They extended it to 30th April (8 days from today).

Then they'll seek possession of the property if you make no attempt to remortgage.

There's no obligation to offer you a new mortgage product. However unfair you view their stance.

beachball_2

I was turned down by specialist lenders, hence trying in wifey's name only. 1 rejected, 1 waiting decision.... So, we have tried to remortgage. Just seems a bit silly to me that they'd go through with it when instead they could just extend the term!

Thrugelmir

beachball wrote: »

Just seems a bit silly to me that they'd go through with it when instead they could just extend the term!

Requires a new mortgage contract not just a term extension.

Coutts is part of RBS. So not surprising that they've changed their policy. As RBS under Hester is shrinking its balance sheet as quickly as it can.

Dave_Ham

Hi - who is the 2nd lender you are awaiting an answer from?

Use your efforts on a new solution, it is incredibly unlikely Coutts can or will change their mind...

To be honest, I thought you had this nailed. The last thing you need is anything untoward on your Wife's credit file so do tred carefully...

GMS

What is your bad credit and when did it occur?

How much do you need to borrow and how much is the property worth?

Some lenders will not allow a remortgage into a single name with a married couple, moreso when the person being removed will continue to reside. Clear all of this with any lender prior to application as declined applications will take their toll on credit scoring.

beachball_2

There's a lot of bad credit... 2 satisfied ccj's and many defaults, some satisfied, some not, between 2007 and 2008. Property worth 280k, mortgage required is 160k to replace mortgage of same size.

The other lender for which we are awaiting a decision spoke to my wife already and ok'd the sole application, stating I'd need to sign something to relinquish all rights to the property - so that's something.

Slightly annoyed in that I'd asked Coutts to arrange to clear my mortgage in late 2008 by email but they ignored me. If they'd have actioned it, I wouldn't be in this mess! Also, they've just made me wait 4 weeks for a copy mortgage statement which has delayed things...