Credit Score, Joint Mortgage and held to ransom

Madball

Hello,

I would like some advice on how to proceed with a joint mortgage. To give you an idea of my situation I'll give you a bit (might be more than a bit) of previous history.

I purchased a house in 2002 with my wife at the time, the mortgage is in both mine and her name. We had a child in 2003, everything was going well. In 2007 our relationship declined and by the end of 2007 we separated. Because we both couldn't afford to go through the courts we went into mediation which we agreed that she would live in the martial home (for now) and my son would live with her whilst I pay child maintenance. I moved out and lived in a rented flat.

In 2008 the recession hit and the value of our property went into negative equity by the sum of £15K to £20K, so sale of the property wasn't going to be an option for both of us.

During 2008 my ex-wife had run up a lot of debts in her own name thus causing her credit report to state that she would be refused for credit, from what I can remember, she said her credit score was below 100 points. In addition to this she met a new man and he moved in and they have a child together.

After a while I met a woman and we have been living together for a while now and we decided that we want to buy our own home. After speaking with the bank they said unfortunately because my name is on a mortgage already they would not agree for me to go onto another mortgage.

Speaking with my ex-wife I suggested that her and her new man apply for the mortgage on my previous home so that my name can be removed however she is refusing to do this (plus she would get refused by the mortgage lender due to her bad credit history).

In additional to this she constantly threatens me that she'll stop paying the mortgage all the time to get her own way in things and since my name is against the agreement this would appear on my credit report that I missed payments.

I've spoken with a solicitor (I may have not asked the right questions) however he said that there is nothing I can do until my child reaches the age of 18, once that happens I can force the sale of the house. The issue I have with this is that I have 7 more years of her threatening me that she'll stop paying the mortgage, 7 more years that my credit score will be effected by her, 7 more years that I cannot get my own mortgage and after 7 years if we do sell the house at a loss, I'll end up with a £15K - £20K debt that my ex-wife has already said she will not pay a penny to, meaning that I'll have to pay the debt off myself which I cannot afford to.

Basically I am at a loss, I feel that I am held to ransom by my ex-wife and the mortgage lender. Has anyone had experience or has been in the same situation as me and have found a solution to this?

Yours Faithfully
Jon

kingstreet

Madball wrote: »

After speaking with the bank they said unfortunately because my name is on a mortgage already they would not agree for me to go onto another mortgage

And is "the bank" the only place you've been for advice on this?

Did they say you couldn't afford to have another mortgage with the current one in the background or was it just "no, we don't allow that?"

If it is affordable, other lenders will allow you to have another mortgage, treating the existing mortgage like a credit commitment you may have to pay one day.

Get advice from an independent mortgage broker.

Madball

Hello,

If I am honest I haven't spoken with an independent mortgage broker, however I have spoken with a number of main stream banks and building societies and all have said the same thing. I believe its more of an affordability issue as the property I am trying to buy is £170K whereas the mortgage I have left on the previous property is £68K.

I am also worried that if I do somehow get the mortgage that my ex-wife will stop paying that mortgage on the previous property, ruin my credit history and I'll end up losing my current mortgage too

So really my ideal situation is to get my name off the mortgage in the previous property to safe guard my credit history and to not feel under threat of the bank repossessing the house and coming after me for all the debt.

Jon

kingstreet

Once you have a mortgage, no-one can take it away from you, so your ex's conduct won't be that great an issue.

The balance of the existing mortgage isn't the issue for most lenders. Nationwide is one of a small number of lenders which adds together the capital balances, so is that one of your selected few?

It's the monthly payment that counts. If you put the payment in a lender's affordability calculator as a loan, does the rest of your case stack up on affordability?

From this latest thread and your last one from February, you aren't going to get off the current mortgage any time soon, so you need to think about a workaround. Getting a new mortgage as well as, prior to her stuffing things up for you, has to be the priority.

Madball

Yes, Nationwide was one of the select few, when we went to see them on affordability my partner could get a mortgage of £150K on her own however with me applying for it jointly it drops dramatically to £110K, this is why its preventing us from going for the mortgage unless we can somehow save up £20K in additional to our current deposit.

One question could be, if we do manage to get the property into my partners name only how easy would it be to get my name onto the mortgage at a later date?

kingstreet

A transfer of equity, to add you to mortgage and ownership, would be similar to any other mortgage application. Affordability, credit status etc would be checked.

BTW I'm suggesting Nationwide is one of the lenders to AVOID because of its attitude to an existing mortgage. Other lenders do not do this. Please talk to an independent broker as you may have options you are keeping the door closed on by aimlessly wandering up and down the high street.

Madball

Thanks for the advice, I'll go and see an independent advisor.

Beckyy

Do you know the current value of your old property now?

lonestarfan

One question could be, if we do manage to get the property into my partners name only how easy would it be to get my name onto the mortgage at a later date?

Why do you need to put it in joint names anyway.
Can't you find a different way e.g. Ask a solicitor to draw up some type of agreement.
Maybe I'm getting a bit more realistic these days but I'm reading this in every other post about relationship breakdowns. Once your name is on the mortgage it creates a financial relationship and you are jointly and severally responsible for the mortgage debt.

Thrugelmir

Madball wrote: »

Basically I am at a loss, I feel that I am held to ransom by my ex-wife and the mortgage lender. Has anyone had experience or has been in the same situation as me and have found a solution to this?

As your solicitor says. The fact you have a child is the pivotal factor. Any legal attempt to change matters will fail. For the reason that the Court's primary role is that of the welfare and interests of the child. Any decision that the Court makes will put the child first.

So you are going to have to sit out the next 7 years. I accept that it's not easy. However there's the reality of the situation.