Advice on my current mortgage option after a relationship split

cool4door64

Hi I love this site it has helped me in the past and I am hoping I can be helped with some advice as I am getting allsorts of info from family and friends that is very conflicting and causing me all sorts of worry and stress.

So the short version of the story goes like this;

We moved into our new house in july 2012 joint mortgage but all the money used for deposit solicitors fees estate agents etc was paid for by me. I have £13k tied up in the house at current so owe about £112k in total my mortgage is with Halifax whether that makes a difference or not I dont know.

So I moved heaven and earth for a new start for myself, my partner, 2 step children, and my daughter. It all went pear shape and we split up before Xmas.

Now she is happy for the house to be signed into my name, I have never missed a mortgage payment and I have always been the one to pay the mortgage as my ex cant be arsed to even try to get another job :mad:.

Now the youngest is to stay with me we agreed upon and my ex and her two children were to move out locally so we can all still see each other regularly, her choice. She has agreed to sign the house over to me.

The thing that is bothering me is whether halifax will force me to sell the house or repossess it I was told that as long as I keep up the payments they cant do that but have been told they can if they want to?

So I earn £21,798 a year according to the online benefits thing its estimates I should receive about £238 a week in benefits for my daughter so a year thats £12,376 does that sound right to anyone I am really confused?

The other issue is I have alot of debt roughly around £14,000 made up of credit cards and overdrafts, my credit rating is pretty good but cant get any 0% credit cards to make it easier to pay it all off. I am desperately trying to clear all my debts before she leaves to help my circumstances.

I am worried I wont be able to keep the house I have put so much into getting it I am very upset with everything at the moment and I am just so worried if anyone can shed some light or advice on this? Am I worrying about nothing? I have never been in this situation before and im stressed already dude to the breakup and everything else that is going on plus we are still living together.

I thought I could do a dmp or IVA but need to know whether I can even keep the house before trying these options? Anyone else been in this situation?

Thanks P

cool4door64

I forgot to mention that I spoke to halifax and they said we would come into the branch and sign a declaration to change the deed and then they would have to re-assess my affordability to see whether they could allow me to keep the mortgage?

Also Would her name being removed mean we would have to re-apply as to come out of the current mortgage it would cost £3500!

kingstreet

If you make the relevant payment, on time each month, the lender will not contemplate action against you.

As to the formal split arrangements.

The party to remain in the mortgage should approach the lender for a transfer of equity and additional borrowing, if needed to pay her off. If there's sufficient equity, a sole remortgage with a new lender may also be used to repay the current mortgage to get a lower mortgage rate and/or to purchase the leaving borrower's share of the property. The latter may cause early repayment penalties to be payable.

If the borrower's income is sufficient to maintain affordability, the lender will permit the change, or accept the remortgage application.

At that point, the matter will be passed to a solicitor for the transfer of equity to be completed. Once both parties have given their agreement, the leaving borrower is removed from the mortgage and the deeds to the property so they have no further interest in it.

A transfer of equity typically costs between £400 and £600.

kingstreet

The status-quo here is the continuation of the current joint mortgage and joint ownership. Halifax won't throw you out if they don't want to allow the TofE.

cool4door64

She doesnt want anything in terms of a pay off which is great as I am the one who has paid for everything anyway and her wages are separate to the mortgage payment account. So it would simply be a case of transferring the property into my name

So if the mortgage is changed I presume I would still have to pay for the £3500 exit fee of the current mortgage?

cool4door64

It maybe some considerable time before she leaves although its very difficult living together I have raised her children for the past 6 years and love them as my own, so she could be in the house still in 12 months time it all depends on what she wants to do regarding her living arrangements

kingstreet

AFAIK a transfer of equity does not mean you change products, so you should not have an ERP to pay. One or two ex-Halifax employees post on here and they may be able to confirm.

cool4door64

Thankyou so much for your advice I love this site its invaluable if there was more people like the people who contribute to this site in the world it would be a much nicer place :beer::T

Thanks again you I feel a bit more optimistic about things now

Goldiegirl

kingstreet wrote: »

AFAIK a transfer of equity does not mean you change products, so you should not have an ERP to pay. One or two ex-Halifax employees post on here and they may be able to confirm.

I'm one of those ex Halifax employees.

I can confirm that when a customer applies for a Transfer of Mortgaged Property, there's no ERC, as long as you keep the same mortgage product.

This is because you won't be taking out a new mortgage, you'll be keeping the same mortgage as you have now, just changing the name on it.

cool4door64

Thankyou so much to you both I am going to arrange the appointment to change this over ASAP I can pay some of my debt off very soon so this should put me in better position to be viable for going solo thanks again has helped with the weight on my shoulders

Simon_gloster

A transfer can happen up to 120% of the value of the property based the lenders estimate.

As long as the other party is happy to sign over the property and you affordability assessment stacks up this should go thru.