removing a name from a mortgage

MACH73

Hi I'm currently trying to remove my name from a mortgage I have with an ex wife. She has a bad credit rating and can not get a mortgage on her own. So she is telling me she cant remove my name. has anyone else had a problem like this?

kingstreet

That is likely to be true. In addition, if she cannot prove she can afford the mortgage alone, the lender will not release you.

As it stands, the lender has two people to chase if the account falls into arrears. Cutting that to one person with a poor credit history would not make sense.

MACH73

Hi thanks for the reply. do you know if this will stop me from getting another mortgage? cheers

kingstreet

It will mean;-

you can borrow less with some lenders as they will treat the mortgage like a credit commitment deducting the monthly payment from affordability;

where others will deduct the mortgage capital balance from what you can borrow, reducing your new mortgageability by more and finally;

others still who only allow someone to have one residential mortgage, they won't lend to you.

wishus

I'm at the end of a long transfer of equity process.

Our friend who had a mortgage with my OH could not get one by herself without removing herself from that mortgage with him.

The lender would not let him continue as sole name on the mortgage. Perhaps they would if he were considered a sound enough risk, but he was not viable for them.

If your ex has another partner now, could they buy you out?

You may be free to get another mortgage, depending on your own situation, but that other mortgage may be a millstone unless she either brings someone else in, or sells up and starts her own mortgage (reimbursing you for your own part in the investment). Or you could possibly make that a requirement of your divorce, when you get round to it.

We had to do a transfer of equity to get me on the mortgage and remove my friend at the same time, so I am also financially liable on the house, just so my friend could be free to get her own place. Fortunately, all parties are friendly, and patient.

Jennyl

When I split up with my ex, YBS wouldn't allow him to take on the mortgage himself as he failed their affordability checks and he couldn't remortgage with a different lender due to negative equity. In the end the only solution was for me to take out a personal loan and pay a chunk of the mortgage off to bring it down to a level that met their criteria. There was no bad credit involved which I imagine would make the process even more difficult.

Thrugelmir

What was the agreement between you and your ex when you separated?