Sole application, current house sale in joint names with ex...advice needed.

roje

I am single and have an agreement in principle for a mortgage, so have put an offer in for a house.
My current house has sold, funds are yet to be released. The house is owned in joint names with my ex husband ( we are not divorced but live separately).
The deposit for the property will be partly made up from the equity from the house sale. My ex has agreed to transfer all the equity to me as I have the children.
However I cannot disassociate with my ex on my credit reference agency files until the mortgage is paid off from proceeds of the sale. That is our last remaining financial association.
I now need to go ahead with a full application for my mortgage. Is the joint mortgage going to cause a problem with the credit check? Will I have to wait until the mortgage is paid off? This could add weeks on to the process and I'm concerned about the consequences of this.

roje

does anyone have any idea about this?

Manichouse

Depends if your ex has a good credit file. I had this same issue but I waited until the association was removed before I went onto full app as it can and does affect if they have not conducted their own credit well.

roje

His rating apparently drifts between 'poor' and 'fair' on experian which isn't great. The problem is, if I wait for the association to be removed it impacts on the entire chain. Accepted an offer on my house 2 wks ago, had offer accepted on new property on Thursday. The vendor is buying a property with no chain and my buyers are first time buyers so everyone is hoping for a quick turnaround. I got an AIP before I had realised there would be a financial association, I have not struggled to get credit anywhere else.
I won't be able to remove the association until the funds are cleared and the mortgage can be settled which will be at completion of my house sale, that is likely to be a good 4-6 weeks away I'd imagine? Holding the chain up by that long is not good is it? Plus I will then also be homeless in the interim.
Is it not even worth putting in the full application? LTV is 44%, my own file is excellent apart from that link.

roje

It just seems strange because people get divorced all the time and buy a house from the proceeds, I can't be the only person in this situation and I was hoping that the underwriters may see that we live separately and this is the only remaining financial tie and realise that it will obviously be paid off on completion, severing that tie.
I don't even know if it goes to underwriters until the credit check has been done though, I thought they would have had to carry out a credit check for the AIP but no search is showing on my file. It's natwest who apparently do a 'soft search.' Would this not show details of financial associations?

Manichouse

Well if your wanting to take the risk go ahead. I wasn't going to as I knew my ex had an extremely poor file and was borrowing from payday lenders etc.

As most say the AIP is not worth the paper it is written on. It's the full app that is deciding factor and some people have done it with an association and been turned down and some haven't. It's the risk you take with your lender.

As for the comparison to people getting divorced they have as much the same chance of being declined for the above reasons as unmarried couples who are financially associated so that is not a valid argument nor a great comparison.

Speak to your lender to see how they view it as they are the only ones who can say yes or no.

roje

They have done a full credit check on me looking at my equifax file and I was approved for the AIP despite his file being quite poor (although no defaults, CCJS or payday lenders..but late payments on there).
I'm confused reading this forum as my broker (who is away until middle of next week hence a mad rush of posts from me ;-) ) said the natwest AIP they get is quite reliable and they have very few declines but on here I've read lots of people saying differently. I suppose I'll find out soon anyway. I'll ask the broker what he thinks this week and if he thinks I'd be better off waiting.