Mortgage on my ex-wife's house

kilo_foxtrot

Good evening all,

I have done a quick search and found answers to questions similar in vein to my own, but not quite exactly the information I'm after so I apologise if this thread seems familiar.

My ex-wife and I first separated 4 1/2 years ago, which resulted in an eventual divorce and me passing on the house to her in it's entirety. Santander however were no willing to remove me from the mortgage because of the financial position of my ex.

Fast forward to the present... the current 5 year fixed rate is nearing its end and both of our circumstances have changed considerably. My ex is now cohabiting and engaged, but Santander are still not willing to remove me off the mortgage as her fiancee is self employed but not yet got 2 years of books and they do not accept the use of guarantors.

It caused an upset when I refused to sign a new 3-year fixed deal, despite offering advice on finding a lender that will take a guarantor as both of their parents have plenty of capital in their own homes.

In the original divorce papers, it was stated by the court that my name was to be removed "as soon as possible". With my ex cohabiting, her and her fiancee expecting to make the house their matrimonial home and both sets of parents having enough capital to cover the £60k debt, can they be forced to changed lenders and use guarantors?

Many thanks in advanced.

Thrugelmir

Can I ask if the property is a home to your children? As this has bearing on any comment I might make.

Thegirl

To my mind if your kids live there is irrelevant (I am assuming that they do as it would be an unusual arrangement to be awarded the house and you to remain on the mortgage otherwise). The divorce agreement was not that you remain on the mortgage until the children are 18. You are also not refusing to help, merely not wanting to sign up for another three years. You've given them alternatives, they just don't seem to want to take them.

I too would be reluctant to sign up to a three year fixed rate deal, especially since what they are saying they are waiting for is her fiancee to have just two years worth of books in order to take over the mortgage.

What rate will they default to when the fixed term ends? Why I ask-my five year fixed rate ended six months ago and I am now paying considerably less than I was whilst tied to the deal. Five years ago the base rate that you switch to at the end of a mortgage deal was a lot better than is offered now as no one saw interest rates falling and remaining so low for so long. Perhaps just sit tight until their two year books deadline is up?

If what they are genuinely waiting for is her fiancee to be able to take over the mortgage then perhaps if you switch mortgage providers (not to a tied in deal) you could use a broker or at least properly research it so you know you are on a mortgage that can easily be changed once his books are in order.

Also, I would have thought that for such a small mortage another lender might be willing to lend with less than two years worth of books. Trouble is, some people struggle to see things clearly once they've got their mind set on something. Your ex appears to not be considering any alternatives other than you committed to her mortgage for another three years.

I hope some of those suggestions/thoughts help.

Wh05apk

If the mortgage is with Abbey the SVR is 4.74%, presumably there is no incentive to you to get a lower rate? so them having to pay a bit more might incentivise them?

There are lenders out there who will accept 1 years accounts, I am guessing the LTV is relatively low? so that will also help.

kilo_foxtrot

Thank you for your replies guys.

The current fixed rate is 5.25% and will switch to 4.75% come the 3rd of June, even thought the current payments are interest only they will go up by around £45 or so per month.

We do share a child, which is why the priority was to keep our daughter in her home rather than sell a house that has no equity. The house is my ex's so I'm not after a sale and my name is effectively on the mortgage in name only, but I find it incredibly frustrating that I may be held liable for their home putting at risk any future property purchases I make.

Thrugelmir

Thegirl wrote: »

To my mind if your kids live there is irrelevant (I am assuming that they do as it would be an unusual arrangement to be awarded the house and you to remain on the mortgage otherwise). The divorce agreement was not that you remain on the mortgage until the children are 18.

Very difficult to force a sale in such circumstances. The Court will automatically make the welfare of the child the priority. If the ex was to remarry then the dynamics change.

DUTR

Thrugelmir wrote: »

Very difficult to force a sale in such circumstances. The Court will automatically make the welfare of the child the priority. If the ex was to remarry then the dynamics change.

I'm not sure why this comment keeps being banded about, the house belongs to the lender, and if the mortgage payments are not kept up to date the lender can force a sale through repossesion, children or not!

Thegirl

Just to clarify, I didn't mean to force a sale.

As I see it all you want is to not be on the mortgage anymore whilst your ex is asking you to to commit to being on the mortgage for at least another three years, but definately a three year tie in. The reason that she is citing for this is that her fiancee, who lives at the property with her, cannot take on the mortgage yet as he does not yet have two years worth of accounts.

If it were me in her position, I would be doing all I could to not have your name on the mortgage anymore. I think it's wierd for her to rely on you to do this.

Maybe they have investigated them taking on the mortgage and it will be more expensive to do that than getting you to sign up for another three years.