re-mortgaging to buy out partner in IVA

Kate9876

My partner has had recently agreed a full and final settlement IVA. The plan is I will buy his share of the property and this will be used to settle his IVA. I had a re-mortgage lined-up but at the last minute the mortgage lender said they would only give me a mortgage if my partner moved out of the property. Since his IVA was agreed my credit rating is low by association (previously high) because we have the mortgage and a secured loan in join names. There is 50% equity in the property. Will anyone lend to me in these circumstances i.e. with low credit score due to association and with both of us living here?

Dave_Ham

Potentially yes, although there is an extremely limited pool of lenders willing to lend under these circumstances.

Best to consult a broker, if you have one may want to upgrade.

This will not be easy.

Best of luck

Kate9876

Thank you Dave

I have now spoken to 3 mortgage advisors and they have all tried but can not find a lender who will lend to me with these circumstances. They will not lend to me with my partner still living in the property as he will have tenancy rights and they would not be able to evict him if any thing went wrong in the future. They tell me some lenders have changed their policies recently.

I am now on the standard variable rate and paying my partners secured loan. I will have to do this for the next 5-7 years. I can pay for his share of the property to pay off his IVA with my savings and have started talking to solictors about the right way of doing this.

Though we both got lots of advise before he decided on the IVA route no one advised us on the difficulty I would have on re-mortgaging I feel let down by everyone who advised us.

Thrugelmir

Kate9876 wrote: »

Though we both got lots of advise before he decided on the IVA route no one advised us on the difficulty I would have on re-mortgaging I feel let down by everyone who advised us.

Your partner let you down. No one else. As it's his financial position that has created the situation. Even without an IVA you would have had a difficult situation to address. There's no such thing as a free lunch.

amnblog

There are a couple of Lenders at least who should do this.


I do not know which Lenders your other brokers have spoken to, but if you credit file is good, there should be options.

Kate9876

No one lender will do everything I need. The brokers I have used have only gone to highstreet lenders. The lender who was the closest fit I failed the credit check (due to association).

Dave_Ham

Which lender was this?