Removing ex-partners name from mortgage

sjhopewell

Hello,

I am after a bit of advice. I divorced from my wife in 2010, which given other circumstances left us both in a financial predicament. I stayed in the marital home, which is in negative equity at present (house value £215k, mortagage £225k)

She went bankrupt, but I decided to battle through but ended up with a bad credit record (with defaults, missed payments and a CCJ). Everything has been fine for the last 3 years with all payments made on time, and me maintaining interest only payments on the house.

However, I want to remove my ex-wife from the mortgage and the deeds. She is fine with this, but the mortgage company (Cheltenham & Gloucester) are saying that I don't meet the affordability requirements despite me paying it every month without fail for the last 3 years. They have no reason to keep my ex-wife's name on the account, as her bankruptcy will mean she isn't liable for any shortfall.

Because it is in negative equity, it isn't possible to sell the house. As a result, I don't want to be in a position where I am not moving forward and still have the financial links with my ex. I would prefer to not have to go down the bankruptcy route, as I know it will put my last 3 years worth of good credit management to waste.

So I wanted to know whether (a) there is a way I can get the mortgage company to remove my ex-wife's name - they don't benefit at all from her staying there - or (b) can I hand back the keys and agree a plan for the negative equity, so that I don't get any (more) bad marks against my credit status.

Thanks

Pixie5740

I smell :spam:

OP you can't (as you've already found out) just remove someone's name from the mortgage and deeds. The only way you could do it is to remortgage in your own name only.

There are a number of factors that are against you. 1) Being financially linked to someone who is bankrupt. 2) Defaults and CCJs of your own. 3) An interest only mortgage (any repayment vehicle in place?). 4) The new Mortgage Market Reviews brought in April 2014. It doesn't sound as though you would meet the affordability criteria for a repayment mortgage. 5) You are in negative equity.

So that leaves with 2 options as far as I can see. The first one is to carry on as you are with the joint mortgage. Although one day the capital will need to be repaid on this loan. Maybe the housing market where you are will pick up and you won't be in negative equity any more. The second option would be to hand the keys back and walk away but that is not without consequences. In doing that you might not ever be able to buy another property again. Have you discussed that option with your lender?

magpiecottage

Pixie5740 wrote: »

I smell :spam:

You and me both.

Thrugelmir

sjhopewell wrote: »

So I wanted to know whether (a) there is a way I can get the mortgage company to remove my ex-wife's name - they don't benefit at all from her staying there - or (b) can I hand back the keys and agree a plan for the negative equity, so that I don't get any (more) bad marks against my credit status.

Thanks

Or it it's cheaper than renting. Remain in the property and start to pay down the mortgage. Obtain a letter from your wife that she has no interest in the home (in a legally enforceable form).

rafty2015

i assure you it isnt spam.

Getting a letter saying ur ex has no interest in the property wont work if its in negative equity.

I've come across this a number of times. a letter from a ex partner will not be enough to convince the mortgage company they have no interest in the party as you are both joint liable if anything goes wrong.

if you wish you can drop me an email and i can advise how to help.

getmore4less

WHy was this not included in the bankrupcy with you buying out her interest in the property.

rafty2015

They would have to get permission from the trustee to do this, but more than likely she didnt want to pay anything into it and get discharged after 12months. the shortfall for her debt can only be brought into her bankruptcy if the property was disposed off, but i get the feeling her negative equity wasnt included in the bankruptcy so she's still liable. but again this is only me thinking outside the box.

getmore4less

rafty2015 wrote: »

if you wish you can drop me an email and i can advise how to help.

If you have something to share do it here so all can get benefit.

rafty2015

it's are to generailse theIt’s hard to generalise the solution as everyone’s circumstances are different and what they want the outcome to be is different, (plus it will involve their own financial information which is sensitive) and a lot of this information is easier to explain over the phone to save confusion.

But in general if you’re in negative equity, help is at hand and you can dispose of the property and move on

For sjhopewell it is possible to sell the house and then sort out the shortfall debt there after whether it is via and insolvency route or an informal settlement.

Pixie5740

rafty2015 are you touting for business on the MSE forum?

getmore4less

rafty2015 wrote: »

it's are to generailse theIt’s hard to generalise the solution as everyone’s circumstances are different and what they want the outcome to be is different, (plus it will involve their own financial information which is sensitive) and a lot of this information is easier to explain over the phone to save confusion.

But in general if you’re in negative equity, help is at hand and you can dispose of the property and move on

For sjhopewell it is possible to sell the house and then sort out the shortfall debt there after whether it is via and insolvency route or an informal settlement.

You obviously have not ready much on here, mortgage detail income spending habits debt in detail.

People share their financial info all the time on MSE there is enough anonimity for people to be comfortable.

what you can do is point them to the sort of people than can help and the schemes available then others can read.