Release from Mortgage

lornadoon1011

Ex husband has bought me out of the property and done through courts so I am not liable to pay mortgage, however I am unable to get name of mortgage even though not liable. Would I still be able to get another mortgage and something put on my credit file to state I am not liable to pay the mortgage

Annisele

Are you certain you're not liable to pay the mortgage?

Often, when people get divorced they'll agree that one of them will take over the house and the mortgage. That agreement binds the two of them - but it doesn't bind the mortgage lender.

If the mortgage lender wasn't party to the court proceedings, it won't be bound by them.

If you're right, and you really aren't liable to pay the mortgage, then you should be be able to get your name off it. What reason does the lender give for refusing?

xHannahx

The mortgage company won't be bound by the court hearing and are under no requirement to release you. If they won't release you then you remain liable regardless of what the court says.
The court would of said he had to make all possible attempts to get you released, but if the mortgage company says no then that's their decision.
Due to regulations on mortgage lending now, the remaining party must meet the lending criteria solely. The court won't normally order it must be done as the remaining person may not be eligible by themselves,

lornadoon1011

The mortgage company wasn't party to any of the proceedings and the court has said he must try every 6 months to try and get my name off the mortgage. But my solicitor has said all along that I wouldn't be liable for the mortgage anymore so does that mean my solicitor has misinformed me and given bad advice. And does that now I will be unable to get a mortgage by myself now.

Annisele

It sounds to me as though you have two entirely separate agreements.

One of those agreements is between you and your ex (as borrowers) and the bank (as lender). When you bought the house, the lender lent money to both of you jointly. You both promised to pay the money back. The lender hasn't released you from your promise - so you're both still liable to pay the mortgage. The lender can come after either or both of you for its money.

Separately, you have an agreement with your ex. He's given you a legally binding promise that he will pay the whole mortgage. If he breaks that promise, that's between you and him; it's nothing to do with the lender.

So, you remain liable for the whole mortgage - but so long as your ex keeps up payments, you won't have to pay anything. If your ex stops paying, the lender will demand that you pay - and you'll have to. Technically you could then sue your ex for the money (relying on your separate agreement with him), but if he's stopped paying the mortgage that might well be because he doesn't actually have the money. There's no point suing penniless people.

As to your first question - can you get another mortgage - I don't know. You should speak to a broker, but the fact you're already named on one mortgage will reduce the amount you can borrow.

You are liable to pay the mortgage, so you won't be able to get anything added to your credit file to say you're not.

Lastly, I'm afraid I've no idea if your solicitor has given you bad advice.

eddddy

lornadoon1011 wrote: »

...
But my solicitor has said all along that I wouldn't be liable for the mortgage anymore...

There are different ways of interpreting that kind of statement. I think what your solicitor means is:

The court has ordered that your ex-husband must pay the mortgage.

.... but, as it stands, if your ex-husband disobeys the court and doesn't pay the mortgage, the bank can still chase you for the money.

Therefore, as far as other lenders are concerned, you are still liable for that mortgage.

If you can get your name removed from that mortgage, that problem goes away.