mortgage and dmp worry....

emmaroids

hi guys
ok me and my partner recently separated.
im keeping the family home and she is willing to sign it over to me.

so to do that we have to go to the bank so they can asses if i can pay it on my own and then on to a solicitors.
my worry is, im on a debt management plan so when the bank does the credit check on me its going to show that i cant afford the repayments.
i can pay the mortgage but that doesn't show up on their system.
so if this shows that i cant pay will they take the house off me leaving my kids homeless?
what happens in a situation like this?
thanks.

Thrugelmir

Firstly speak to a solicitor regarding your separation.

Given your are in a DMP. The most likely outcome is that the property will remain in both of your names. With both of you remaining jointly liable for the debt. As you say the key factor is the welfare of the children.

ACG

If it shows you cant afford it then they will say they cant take your ex off. You then have a decision to make between you.

emmaroids

so am i right in saying that the bank wont let me continue if im on a DMP?

emmaroids

ACG wrote: »

If it shows you cant afford it then they will say they cant take your ex off.

but will they take the house off me?

ACG

Personally I think its a wasted exercise, I cant see them allowing you to make any changes whilst you ina DMP.
But no they are not going to take the house off you.

Your ex may really want their name off the property, which means they could force it off through court which in turn would mean you would have to sell it.

emmaroids

many thanks.
i will have a word with her and see what occurs.
so pretty much just carry on as we are.

Thrugelmir

ACG wrote: »

Your ex may really want their name off the property, which means they could force it off through court which in turn would mean you would have to sell it.

The Court will act as guardian of the children and represent their interests and welfare accordingly. This interest will take precedence above those of the warring parties.

Westminster

It can't hurt to ask.

Admittedly pre-MMR but last summer, I investigated porting my NRAM mortgage while on a DMP which they agreed to and also in discussion with the underwriter, they agreed to reset the term on the loan too. In the end that move didn't stack up so didn't go through with it - but the initial person I spoke to on the phone was very skeptical.

caprikid1

"i can pay the mortgage but that doesn't show up on their system"


Undeclared income ???

enthusiasticsaver

If you are on a DMP it is unlikely the bank will agree to your ex being removed. Are there arrears outstanding on the mortgage? That will have an impact. The bank will look at your income and the amount of the mortgage but if you have a poor credit history the most likely outcome is that they will insist both you and your ex remain jointly liable. They won't take the house off you though if you are up to date with the mortgage payments.