Joint Mortgage probs

phil_mac_2

hi there
I have 2 joint mortgages with my previous business partner on 2 similar properties we decided to have one each but stick with the joint mortgages which was fine for a while then i started getting letters from various credit card companies telling me my limit was being decreased so after a check on my Equifax file i found out that my ex partner had six late payments and obviously as i am joint on them it was marked on my account,so my question is what can i do about it i have a perfect credit history apart from this i have a fair bit of credit but always paid on time,i did get some info on seperating the mortgages but found out there was no way my ex partner would get a motgage so the bank probably wont allow me to take my name off the mortgage.
Thanks in advance

[Deleted User]

If youe ex partner cannot get a mortgage in his own name, then you need to look at selling, or finding a way to keep up with payments.

StuC75

Either pay the ex partners debts for them, maybe with some variation in the share that you then each hold of the properties - e.g. you buy equity which they use to pay debts..

Or look to sell up and bring this to an end - you can then file a notice of dis-association once the active accounts have been closed down..
There inability to get a mortgage shouldn't hinder your future!.



This is the downside to linked credit files..

phil_mac_2

StuC75 wrote: »

Either pay the ex partners debts for them, maybe with some variation in the share that you then each hold of the properties - e.g. you buy equity which they use to pay debts..

Or look to sell up and bring this to an end - you can then file a notice of dis-association once the active accounts have been closed down..
There inability to get a mortgage shouldn't hinder your future!.



This is the downside to linked credit files..

the debt is paid it was just late i think selling up would be ideal but he doesnt want to sell

Tixy

The problem is not just that this debt had eventually been paid, whilstever you are financially associated with him then your ability to get credit/new mortgage etc will be affected by anything on his credit file (so if he falls behind with debts just in his own name that could still impact on you).

When you originally were in business together did you set up an agreement as to what you would do in these circumstances? if one wanted to sell and the other does not.
If he doesn't want to sell, and he is unable to get a mortgage in his own name then you may need to look in to the possibility of forcing a sale through the courts.

phil_mac_2

Tixy wrote: »

The problem is not just that this debt had eventually been paid, whilstever you are financially associated with him then your ability to get credit/new mortgage etc will be affected by anything on his credit file (so if he falls behind with debts just in his own name that could still impact on you).

When you originally were in business together did you set up an agreement as to what you would do in these circumstances? if one wanted to sell and the other does not.
If he doesn't want to sell, and he is unable to get a mortgage in his own name then you may need to look in to the possibility of forcing a sale through the courts.

its not mine to sell i have another house again in both names but i look after that and he looks after his its only half mine in name only but in reality its his house

Tixy

phil_mac wrote: »

its not mine to sell i have another house again in both names but i look after that and he looks after his its only half mine in name only but in reality its his house

'In name only' is the key thing here. If you are registered as an owner of the property then you can apply to the court for an order to sell.

If you have decided between you and documented that he gets 100% of any equity then that is fine, but you still have the right to apply for it to be sold so that your name is no longer on the mortgage.

Equally with the other property that you see as yours, you'd need to look to mortgage the property in your own name and take his name off the mortgage, or consider selling that property as well.

I would absolutely work on getting this sorted now. You don't want to be linked with these mortgages for years and have all the associated risks.

Do you each live in the respective properties? or are they let out?

kwmlondon

Can you do an exchange? Swap the collateral in one for the debt in the other and just have a property each, with adjustments?

phil_mac_2

Tixy wrote: »

'In name only' is the key thing here. If you are registered as an owner of the property then you can apply to the court for an order to sell.

If you have decided between you and documented that he gets 100% of any equity then that is fine, but you still have the right to apply for it to be sold so that your name is no longer on the mortgage.

Equally with the other property that you see as yours, you'd need to look to mortgage the property in your own name and take his name off the mortgage, or consider selling that property as well.

I would absolutely work on getting this sorted now. You don't want to be linked with these mortgages for years and have all the associated risks.

Do you each live in the respective properties? or are they let out?

No they are let properties,the problem I've got now is I prob won't get a mortgage because of these defaults but I'm quite happy with mine because its got a dirt cheap mortgage on it so don't really want to lose that and I'm quite happy this won't happen again but it's my record that I need to set straight even if we sell up that won't solve my problem

Tixy

No even if you sell up that won't go from your credit file. It is a correct reflection of the account. But in time it will have a less damaging effect.

The problem is if you don't sell up and remain linked then he could have further financial difficulties which will impact on you further and for much longer.