Need my name removed from a mortgage

coach_potato

Hi,
Back in Oct 1990 I entered a mortgage agreement with my then wife, this was under a 75% equity scheme. In 1999 my wife and I split and she was left with the flat and our four year old son. In 2000 we had to rearrange the mortgage so we can repay the 25% equity we owed to the builders. It is now 2013, I have a fiancee, a 15 month old son and a mortgage on a property I'm not living at. My fiancee and I live in a one bedroom house and desperately need to move into a bigger property for our sons sake. I am still named on the mortgage with my ex wife and the Bank (Halifax) say they cannot remove me from this as on paper my ex wife doesn't earn enough. I innitially paid the mortgage for the first five years then my ex wife has been paying it ever since.
My financial situation is not great at the moment anyway as I have a debt management scheme in operation with Gregory Pennington. Currently owing £7'800 and paying £97 a month this is forcast to last 12 years approximately.
Any advice on removing my name from the current mortgage would be greatly recieved.

Many thanks.

James

P.s. Hope this all makes sense as I'm not very clever with finances or explaining things.

holly_hobby

To remove you from the mge (and deeds), the lender (all lenders in fact)will require your ex's income to be sufficient to service the loan on its own.

Halifax have said under their income criteria its not - which means that they won't allow you to be released.

You could try and mediate with your ex and see if she would consider remortgaging to another lender whom may have a more generous income multiple - but you can't force her.

If you were able to source an alternative lender to accept your ex's sole income - she won't qualify for any fee free remortgage deals due the associated transfer of equity that is reqd - to which I would think it reasonable that you fund the costs, given that its you driving the exercise.

If you sourcing an alternative lender isn't possible because your ex won't play, or her income isn't sufficient - then there is only one other way to remove this liability, and that is to sell the property, (but given your child lives there, this may not be something you wish to pursue at this time).

Hope this helps

Holly

Thrugelmir

What were the terms of your financial consent order when you split from your wife?

Has your son left full time education yet?

coach_potato

Hi and thanks for your reply

When we split we made a verbal agreement re maintenance which has been paid regularly. My son leaves college in July. I can't remember off hand what exactly the terms were re the flat during the divorce preceedings and at present I can't find any paperwork on this.

Thrugelmir

coach_potato wrote: »

I can't remember off hand what exactly the terms were re the flat during the divorce preceedings and at present I can't find any paperwork on this.

So your solicitor at the time did draw up a financial consent order?

coach_potato

I'll be honest with you I really can't remember. All I can remember is that after 5 years separation she filed for divorce, (cheapo one) and I now have the decree nisi

InsertWittyName

coach_potato wrote: »

My financial situation is not great at the moment anyway as I have a debt management scheme in operation with Gregory Pennington. Currently owing £7'800 and paying £97 a month this is forcast to last 12 years approximately.

Get yourself on the Debt-Free Wannabe forum and post regarding your debt.

You shouldn't be using a fee charging company such as Gregory Pennington when there are charities that will perform the same service for free (such as StepChange, CAP & PayPlan).

neverdespairgirl

OP, why would it make any difference? You aren't paying the mortgage, so having your name off it won't actually get you anywhere, will it?

maninthestreet

Does the mortgage end in 2 years time - assuming it's a 25 year term mortage??

Gary123456790

neverdespairgirl wrote: »

OP, why would it make any difference? You aren't paying the mortgage, so having your name off it won't actually get you anywhere, will it?

Yes it will - he is still named on the mortgage so it is still his debt as much as the ex wife's. This means he cant get a new mortgage for a new house as he is still on the old one.

Whether he is still paying or not is neither here nor there, the fact that he is still liable for the debt is the issue.

Gary.

Thrugelmir

Gary123456790 wrote: »

This means he cant get a new mortgage for a new house as he is still on the old one.

With a DMP that potentially has 12 years to run. Then a mortgage is not on the horizon for many years yet.