Re-Morgage to get better interest rate but partner has bad credit

Tim1964

Hi, has anyone any thoughts on the following situation that I'm in.
I have a morgage with what was Northern Rock with about £140K left to pay on a property valued abot £320K. I am keen to remorgage to get a better rate, we are currently paying 4.99%, unfortunately in the time that we've had this morgage my 'beloved' partner has managed to default on several loans and subsequently has an awful credit rating. I have spoken to the Nat West ( who I bank with ) and they have refused to give us a joint morgage, however they have suggested that if I have my partner's name removed from our current morgage then in about 3 months time I could reapply just in my name and I would be accepted.
They seem to think that I would need to use a solicitor to do this, I'm now confussed as to what they meant. Am I to get her name off the morgage or the Deeds or both ? If I have her name removed from the Deeds can we get a legal document drawn up that states that we still own the house 50/50. I'm loathed to phone back and have to hang on another hour to get this clarified. Has anybody got any thoughts on this or any other way in which I can tackle this problem.
Many thanks Tim.

kingstreet

You'll have to do a transfer of equity to have a sole mortgage and sole ownership of the property. That costs £400 to £600. You can have whatever agreement you want drawn up, if you are prepared to pay for it.

It's worth noting, if you have other accounts and credit commitments, you would have to sever all financial links and have the CRAs do a disassociation to ensure no lender saw you as financially linked, otherwise the TofE might be a waste of time.

You should be paying 4.79% to NRAM, although this drops by 0.25% when you've been with them 7 years if you didn't have a Together combination of mortgage and unsecured loan, then the follow-on rate is 4.78%.

Tim1964

kingstreet wrote: »

You'll have to do a transfer of equity to have a sole mortgage and sole ownership of the property. That costs £400 to £600. You can have whatever agreement you want drawn up, if you are prepared to pay for it.

It's worth noting, if you have other accounts and credit commitments, you would have to sever all financial links and have the CRAs do a disassociation to ensure no lender saw you as financially linked, otherwise the TofE might be a waste of time.

You should be paying 4.79% to NRAM, although this drops by 0.25% when you've been with them 7 years if you didn't have a Together combination of mortgage and unsecured loan, then the follow-on rate is 4.78%.

Thanks Kingstreet, We took a rate of 4.99% that was fixed for 15 years ( seemed a 'safe' thing to do at the time, I'm sure it was 15 years, anyway it was at least 10 ) so I'm stuck at that rate for a couple more years yet.

kingstreet

NRAM then, or Virgin Money? Some went one way, some went the other...

So are you planning to pay the early repayment penalty to leave now, or are you waiting out the ERP? If you are, won't the credit problems be historic and more manageable/ignored by then?

Tim1964

kingstreet wrote: »

NRAM then, or Virgin Money? Some went one way, some went the other...

So are you planning to pay the early repayment penalty to leave now, or are you waiting out the ERP? If you are, won't the credit problems be historic and more manageable/ignored by then?

It's NRAM, there won't be any early repayment penalties, they keep writing to us to tell us we can leave at anytime and there won't be a penalty. I'm not sure if it's just me they want shot of or they're generally trying to reduce their size.
Unfortunately my partner is now 'under' a debt management scheme and I fear it will be some while before these credit issues become historic. By somewhile I mean probably never ( my opinion ! )