Help with Unregulated mortgage

orangatan

Hi


Rang my mortgage company yesterday to try and remove my ex husband from mortgage at his request but told I was unable to make any changes as it is an unregulated mortgage.I also have a secured loan on property in both our names. Mortgage owed is £95k and secured loan is £21k. House is probably worth that. May question is how do I go about trying to get a new mortgage with new partner either on this property or elsewhere. ANy one any ideas as I am very confused. Thanks x

kingstreet

Was it a buy to let?

You need to apply for a residential remortgage in your new names to repay the old mortgage and secured loan, assuming the plan is to live in the property.

During the process, your solicitor will handle a transfer of equity to remove your old partner and add your new one.

orangatan

As far as I am aware it was not Buy to let.


Will have to try and dig out paperwork. It shouldn't have been buy to let, It was interest only though .

Thrugelmir

Selling it and clearing the debt, along with cutting the ties to your ex in the process may be the cleanest route.

orangatan

Yes I think that is the best option too but just need to find a deposit and also could I apply for new mortgage before my property was sold to enable to buy elsewhere?

kingstreet

Yes you can apply. You just won't be able to complete until the old property is sold.

What made it unregulated then?

orangatan

I will still need a deposit though. I guess I should get house valued to see if there would be anything left over after sale.


Not sure why its unregulated, I just rang GE Money yesterday to ask about transfer of equity and was told I cant make any changes He told me to speak to an independent financial advisor.

nuzik

There was some mortgages sold a few years or so ago that were unregulated and these usually were the second mortgages on the property with the lender which made them a pain for the existing mortgage and remortgaging was the only option.