mortgage issues - help!!

MWake

Hi All,

I am new to this site and I'm in desperate need for advice.

Bear with me as this is quite long winded.

Basically 7 years ago myself and an Ex girlfriend got a mortgage, we split up 5 years ago and have a son together.

We decided it was best that I move out and leave her with the task of paying the mortgage as her income easily covered all the bills and in doing so would keep a roof above our sons head.

I have since moved on with my now Wife, have a daughter with her and we own our home together.

My name is on this mortgage and my ex's mortgage.

The past few months, for one reason and another, have been hard on my ex as she has been made redundant and her boyfriend (who lives in the house with her) has been injured and is unable to work. This has meant they cannot keep up the mortgage repayments.

As my name is still on the mortgage I am obviously worrying that her bank will come knocking on my door for me to contribute given my name is still on the mortgage.

IF this was to happen is there a likelyhood that the bank would be able to use my assests (my new house with my wife) to recover any monies outstanding?

IF this is the case, would it be financially beneficial to remove my name from my joint mortgage with my wife so my new home cannt be used to recover money??

If my Ex is to default on payment or give the house back to the lender I will obviously be left with a debt.

I don't know what to do for the best. This will obviously upset my wife at the thought of us losing our house. We bought it to keep in her family after her nann died and we've spent a lot of time, money and effort building a life for ourselves here.

I'm lost

Any help will be appreciated, I'm sure that soon I'm going to seek legal advice with a solicitor too

Thanks
Mark

kingstreet

As you have joint and several liability for the mortgage, you could be expected to contribute to it. This is about income, not about assets.

You would be expected to pay the whole mortgage. Failing that, you would have to complete an income and expenditure breakdown to justify to the lender why you are unable to meet your responsibility.

If the property was repossessed, the lender would have the right to pursue you for the residual debt and then, your assets could be taken into account.

The issue of the joint mortgage should have been resolved a long time ago and not doing so is now going to bite you where the sun don't shine, I'm afraid.

Annisele

Be aware that if payments are missed on either of your two mortgages, that'll be very bad for your credit record. The lenders don't care whether you live in the house or not - they care that you're named on the mortgage.

Can you afford to pay both mortgages, at least in the short term?

Is the first house worth more than the mortgage on it, and is your ex thinking about selling?

Are you paying all the child support you're supposed to for your son?

As to your worries about losing your house - IMO you're getting way ahead of yourself. Your first mortgage loan is secured against your first house - not your second one - and so if the first mortgage lender does take possession of a house, it'll take the first one.