Any type of Ombudsman if Mortgage refused?

Finley01

Daughter bought house jointly with ex husband in 2007.
Separated and divorced 2010. Ex's name remained on mortgage as bank unable to take off - due to daughter's part-time worker status and two young dependant children.
She was, however, fully responsible for all mortgage payments as agreed when divorced, and Ex has no claim on property.
Also included in divorce agreement: if any future partner moved into the property, they must replace Ex's name on mortgage after 6 months residence, otherwise Ex can force a sale.
The current situation is that Daughter and Partner approached bank to proceed with above and were initially told it would be straightforward and cost £295 to do name swap, but would obviously check Partners finances etc. Fine. Not! Why? Both have good credit, never missed payments etc. all checked out,mortgage is less and Partner's income more than Ex's. To say nothing of Daughter managing same mortgage alone for years.
The household income has, in reality,increased by £30,000 a year
and household occupation by one adult and one baby.
Also, although children's maintenance payments from Ex cannot be counted as household income (quite rightly) the children are classed as dependants when mortgage calculations considered.
Does common sense ever come into these situations?
Please can anyone advise? Why should a family lose their home when they can afford to pay the mortgage and save a minimum of £250 per month? Partner is in very secure job in nuclear industry and Daughter newly qualified teacher, who hopes to be employed in the near future, thus improving their income yet again.
Help! So frustrating!

ACG

You cant force a lender to take on amortgage.

You have given no facts to suggest whether your thoughts are reasonable or not. But one lender declining does not mean they all will.

Yorkie1

Can they not remortgage with a different lender?

Thrugelmir

What's the reason given for the decline?

Both have good credit, never missed payments etc.

There's no bonus points for paying to contractual terms. That's the bare minimum to maintain a good credit rating. Your inference is that they have other debts. Perhaps this is where their problems lie.

amnblog

Your daughter should stop messing about and engage a mortgage broker.

Finley01

Thank you for quick replies. Local bank is doing best to fight their corner - as agree silly situation. Both have leased cars- and have savings to reduce outgoing payments, but have been advised not to do that as yet? Problem seems to be 3 children. Apparently should have £500 per child spare per month, and as stated, any maintenance payment for older children is not considered. Will mention Mortgage Broker idea. Thanks again.

amnblog

Going direct to a mortgage lender like trying on a single pair of reading glasses in Boots.


If you can't see, does that mean that reading glasses don't work for you? Do you go to the counter and complain?


A Mortgage Broker will sort out your prescription and find something that will do the job.

Thrugelmir

Finley01 wrote: »

and have savings to reduce outgoing payments, but have been advised not to do that as yet?

No one is going to tell them how to run their finances. Debt and savings do not sit in separate pots. What matters is the net position.

Finley01

Mortgage lender had to be approached, they hold the mortgage which requires amendment.
Can look around, and will do if common sense does not prevail.
Current lender happy to leave as is - or fine for Partner to take out new mortgage on his own (1 child of his own, only £500 spare income needed).
Daughter would like some security for herself and older children however, and would prefer to have joint names ( she has repayment mortgage and
has, at last, got a little equity in the property).
Will sort something out, just wondered if anyone knew of way to appeal or something.
Thanks again to those of you who have taken time to reply.
Will post eventual outcome!