Taking My Name off a Mortgage

Goldiegirl

An interest only mortgage must have some plan in place to clear the mortgage at the end of the term.

It is likely in this case that the interest only was a short term measure due to immediate hardship.

If the mortgage continues on interest only, what would be the plan to clear the mortgage at the end of the term? Selling the property is not acceptable, because it would potentially leave the mortgage holder homeless.

chalkie99

You started off this thread by saying:

I have recently been able to pay off all my depts including a loan that was secured on the house in just my name.

I have no outstanding depts in my name attached to that house so i now want my name taken off the mortgage

.

However, it now transpires you are party to an interest only mortgage of £130,000 with no equity.

Do you realise this is your debt? The whole £130,000, jointly and severally.

getmore4less

Lets cut to the key bits.

colinairey wrote: »

I spoke to the lender this evening and they said that my x wife needs to give them a call to go over income and expenditure with them. If they find she doesn't earn enough to cover the mortgage (which on paper will look like she doesn't) then they will not allow my name to be removed. Whats worrying tho, is that they have said that because I'm no longer living there and not contributing to the mortgage, she will need to change the monthly payments from Interest only to a Repayment making her monthly payments a lot more than what she is paying now which she will not be able to do.
Im struggling to work out how this is going to work? The house is worth around £130000 and that is what we owe so there isn't any money in it. She also has a secure loan in her name of £100000 attached to the house which if I'm right in thinking brings the value down to £120000. She is currently paying £501 a month and has never missed a payment. What benefit will the lender have insisting she changes to a repayment mortgage of which she will not be able to pay. Surly the lender should be happy they are getting the interest paid every month in the knowledge that at the end of the term they will still own the house anyway.? Im confused

No chance you will get off this mortgage, there is no equity, extra charge, and potential an income shortfall. I can't see you getting off this any time soon if ever.

Probably the only chance is if the ex shacks up with someone new.

You have alerted them to the situation which is going to please the ex no end if they actualy persue this change to repayment and put your own finacnial situation in jepordy if she can't pay, either you get to pay or credit gets trashed with late/missing payments.

The secured loan does not bring the value down, mortgage is first charge get their money first the loan(if they let the place sell) become unsecured along with any shortfall on the mortgage which you would also be liable for.


£500pm interest only on £130k 4.65%, repayment over 20years £833

colinairey

I understand that as it stands i am 50% responsible for this debt but what I'm basically doing is giving her the house because she has no intention of moving, she likes living there. If the house prices went up she would benefit. When I left the house i left with nothing. I have rebuilt my life, paid off all my debts, re married and had another child. All i want to do is move on so i can buy my own house but this is hanging over me. Like i said, my x wife has no intention of moving so what can do.?

StuC75

To the OP, if your exwife has low income and could not pass the earnings affordability checks by the lender then it may be difficult to complete the transfer of equity to take your name off the mortgage..

There is the possibility that the lender may take into consideration that she has been able to maintain the payments over the years..

When I split with the ex my case was 'borderline' on there checks, but they took into consideration that I had been paying it for over a year just from my account (coupled with good clean credit file and the funds in place to pay the LTV % down to there guide levels)..

colinairey

Forgive me for clutching at straws here but I'm devastated with this new information. I now realise that i was stupid to think that it would be as easy as just taking my name off but if my x wife has been paying the mortgage for the last 6 years on her own without my help I honestly thought it could be easily changed. Ive just got myself back on the straight and narrow financially and now this. : ((

getmore4less

colinairey wrote: »

I understand that as it stands i am 50% responsible for this debt but what I'm basically doing is giving her the house because she has no intention of moving, she likes living there. If the house prices went up she would benefit. When I left the house i left with nothing. I have rebuilt my life, paid off all my debts, re married and had another child. All i want to do is move on so i can buy my own house but this is hanging over me. Like i said, my x wife has no intention of moving so what can do.?

You are both responsible for 100% of the debt.

Thrugelmir

colinairey wrote: »

I understand that as it stands i am 50% responsible for this debt but what I'm basically doing is giving her the house because she has no intention of moving, she likes living there. If the house prices went up she would benefit. When I left the house i left with nothing. I have rebuilt my life, paid off all my debts, re married and had another child. All i want to do is move on so i can buy my own house but this is hanging over me. Like i said, my x wife has no intention of moving so what can do.?

As a follow on from my earlier post. I'm assuming that the financial consent order will allow for your ex to remain in the house at the current time. Even if not you will find that the court as guardians of the children will rule to maintain the staus quo at the current time.

Once your children are both financially independent then your ex will have to (a) refinance the mortgage into her name (B) sell the propery (c) you can force a sale through the courts. This is very expensive and may well require equity in the property to fund the expense.

dimbo61

Your EX wife will now get letters from the lender asking how she is going to repay the loan.
This will please her no end.
You phone call to the lender has not helped in anyway what so ever.
You are responsible for ensuring your children have a roof over there head.
In 13 years time when your youngest finishes full time education she may under the terms of the divorce have to sell up ?

JimmyTheWig

colinairey wrote: »

I watched a thing on Mortgages not so long ago and Martin Lewis was taking about the best way to keep your credit score good and up to date before getting a mortgage and one of the things he said was if you still have your name on a mortgage with an x partner then you should look into getting your name De-Linked. He made it sound as if it was easy to do. ?

De-linking is easy.
Unfortunately you aren't at the de-linking stage yet.

Imagine that the house is sold and the mortgage is paid off.
Your wife then racks up large credit card bills and defaults on them.
You then apply for a new mortgage.
The mortgage company look at your past credit (all good, hopefully!) and who you are linked to. They see the link with your ex-wife because you had a joint mortgage.
They look at her credit history (terrible, in this scenario) and refuse your mortgage.

What Martin would have been saying is that at the point in time when you no longer have any joint financial products with your ex-wife (i.e. when the mortgage is paid off or equity has been transfered) you should contact the credit reference agencies and remove the link between the two of you.
While you still have a financial link you can't do this.