Mortgage Redemption Fee (Unfair Situation)

benmusk

Hello,

I have been split up with my partner for aprox 12 months now, we have a joint mortgage with 4 years left on the tie in term. My partner never contributed to the mortgage she was just on it for convenience. My partner has agreed to sign over her equity but I contacted my lender ( nationwide) and they said they cant accept me because my credit rating is not up to scratch. I earn enough but I have a default. Even tho I have never missed any payments and I earn way over what I need to maintain the mortgage they are saying they wont take her off. I need to remortgage and pay a £7000 redemption. Can Nationwide do this? Can I maybe get this redemption figure reduced? It also would be well in their favor to let me go early as I have a 3.75% rate, surely they can re lend this money for a much higher rate.

Please HELP!!!!

MortgageMamma

Hi ben

Have you spoken to your local branch about this? They can do this unfortunately, but i would ask them if there is any way they can reduce the early repayment charges as a gesture of good will.

benmusk

My branch cant help me, they dont seem to care. I just want to take her name off, I even suggested swapping her for another person but they just wont budge

simonts

same boat as i am in...yet to find a way out

MarkyMarkD

As far as the lender is concerned, they consider your application for a transfer of equity as a new mortgage application. If they wouldn't lend you the money, in your own right, as a single person then they won't let the other person be removed from the mortgage as it reduces the likelihood of them recovering their money.

Even though you have split from your ex-partner, she is still jointly liable for any shortfall on the mortgage and there is definitely an increased risk to the lender if you cannot pay.

I don't know your age or circumstances, but it could be that if you could get a parental guarantee for your mortgage they would allow the transfer of equity.

Apart from that, there is next to no likelihood that they would let you off the £7k repayment fee which exists because you've had a deeply discounted product and they've made a loss on your account to date. It's not their fault that you have broken up with your ex-partner and hence decided to alter the mortgage.

I presume that the default you are talking about happened after you originally took out the Nationwide mortgage? Have you settled, or can you settle, the default amount to improve your credit rating and have you suggested this to Nationwide?