Mortgage affordability

Fitrix

Hello, I'm chasing my tail trying to find out a solution to my problem.
I have a mortgage with my ex-husband. He wants to remove his name from the mortgage so that he can start a new mortgage with his new partner.
I and my new partner are easily able to afford the repayments, but because we are both self-employed and our net profit is really low, our current provider says we are not eligible to meet their requirements for the amount of the mortgage.

What do we do? We have been making the repayments easily for the last year and see no reason why we can't continue to do so. Will they force us to sell up? Can my ex-husband get his name removed anyway?

Any advice gratefully received!

Dave_Ham

Ok, firstly every lender views self employed income slightly differently and therefore there may be a solution with a different lender.

Whilst your Ex cannot quickly enforce a sale, he potentially could go through the courts and within a reasonable timescale expect his name to be removed.

If you want to provide more information regarding income, property valuation, mortgage valuation etc. will be able to give more specific answers as to whether anything is likely to be out there.

Being able to pay a mortgage and having a track record of doing so only helps your credit file, no lender will use this as the basis of future affordability.

Fitrix

Thanks so much for your reply. Future looks gloomy then!

I don't know if my ex would go through the courts - he wouldn't do that. But can he just get his name removed anyway?

For info:
House value is approx £240000
Mortgage is £108000

My and my new partners joint income is £19000 (net profit).

We are able to easily afford repayments as we have other incomes such as maintenance payments/WTC and our turnover is quite a bit more than our net profit..... but I know lenders don't take any of that into consideration.

I appreciate your help and time.

kingstreet

He cannot be removed if you cannot evidence your ability to pay it alone, or with a new partner.

Dave asked for net profit and longevity of self-employment. Please answer for a more specific guide.

Dave_Ham

With those sort of numbers, I would fancy potentially there will be a solution now.

Obviously this is subject to the detail of the case and what rate you are currently on would be a consideration.

kingstreet

I agree with Dave.

That net profit, plus WTC, CTC and child benefit may be enough, as long as you don't have other large credit commitments and childcare costs which eat up the CTC too much.

There are lenders which will accept just one year's net profit, subject to credit score and that low loan to value which will be very helpful. See a broker, as the most likely route for this is a remortgage with a one off, one on transfer of equity at the same time.

Fitrix

Thanks very much for your replies. We've both been self employed for many years - childminders, so childcare is taken care of! No debts at all thankfully.
I will research brokers now.

Many thanks for taking the time.