Removing Name + Default Advice - Nationwide.

willLeeds

Hi Guys,

I have had a mortgage for 5 years with a friend with Nationwide, just after we got the mortgage I ran into slight financial difficulty. It didn’t damage our relationship and although I picked up 3 defaults from 1 over draft, 1 credit card and a mobile phone contact. I paid my share of the bills on the house. Since then, I managed to become much more financially stable and along with an improved job, career I’ve also been managing my finances extremely well.

18 months ago, my friend decided he wanted to buy another property with his girl friend, he understood my situation and I offered to pay him the equity on the house upfront in cash along with all the mortgage payments and bills on the agreement that I would have two years to arrange a new mortgage deal or remove him from the current mortgage.

That two years is coming to an end in six months, one of my three defaults will have dropped off my file, the other is due few months later, and the final 9 months after that.

The other slight twist is that I was offered a promotion at work and relocated to a different city, the house is now rented out buy a couple, using an estate agency, contacted and the rent more than covers the mortgage.

I was wondering if anyone could give me some advice on what options I have, if Nationwide refuse to switch to just my name due to the defaults still on my account.

Other info

House value: £92,000
Outstanding Mortgage: £76,000
Wage: £35,000 PA + Bonus
Credit Card 1: Capital One - £500 Limit, nothing spent. 18 months old, always paid on time.
Credit Card 2: Barclay Card: £800 Limit, spent on each month and paid off.
Credit Card 3: Aqua: £1300 – One large purchase on it, paying £200 standing order off each month.
Ive also had a £2000 Lone, over 2 years , paid off completely, no missed payments.

Along with my mortgage I’ve also been paying an additional £50 per month from the mortgage, standing order.

Any help, advice, etc. Would be great. Im a little suck on what to do if Nationwide do decline me, and would love to keep hold of the house if possible. Its not an option for my friend to extend the agreement as he is looking to lower his own mortgage after his two year deal and can’t being named on two mortgages.

Will

kingstreet

If you intend to continue to let the property, I don't see Nationwide permitting a transfer of equity.

I suspect you'll have to remortgage to a BTL product into your sole name with a new lender, if you have enough equity and the rent meets the lender's formula. You'll complete the transfer of equity at the same time.

I'd see a whole market broker now to see if there's a route for you to proceed.

willLeeds

Do you recommend any brokers?

kingstreet

No. Ask friends and relatives for a recommendation.

Failing that, try https://www.unbiased.co.uk, switching off the "sponsored ads only" option, so you get a full list for your area.

Call around and have a chat. See who you feel most comfortable dealing with.

willLeeds

Thanks a lot. This might sound like a stupid question, but the house is based in Leeds and im currently in London.

Do you think it would be better to look for a mortgage adviser close to the house in Leeds with local knowledge or close to me in London so i can meet them personally?

Or is it irrelevant?

Keekles

Depends if you feel more comfortable dealing with someone face to face as opposed to over the phone. I would say it's probably easier face to face and would be my personal preference but it's up to you.

Strictly speaking, the broker doesn't require any knowledge of the area / property itself other than the financials so in terms of geography, is pretty irrelevant imo.