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Transfer of joint mortgage
afcj
Posts: 180 Forumite
Good morning,
Myself and my (ex) wife purchased our first property little over 2 years ago, this was with a 20% help to buy loan and on a 5 year fixed mortgage.
Unfortunately we are now going through a divorce and need to sort the property out. She has moved out, and the house is on the market with a local agent. Judging by their valuation, there is approx 40k equity in the property.
Ideally, I would prefer to send her half this as cash and take on the mortgage myself. I went through the initial process with our mortgage lender and they suggested I could, but only on a 35 year term instead of 25 years. This was fine with me, if anything it was preferred to help keep payments lower while I adjust to paying it alone!
I then spoke to the help to buy scheme who said I can't take out a mortgage longer than the term of the equity loan (25 years), which ruled out the 35 year option, unless I paid the loan off (not feasible with having to shell out half the equity too).
I believe I could continue to afford paying the mortgage on the current payment over 25 years (have additional savings for emergencies etc), but with not meeting the lenders affordability criteria this doesn't look like an option.
If I was to remortgage elsewhere, there is approx £7000 worth of fees due to being tied into a 5 year fixed mortgage.
Has anyone got any suggestions as to any other ideas on how I could take the property + equity loan on myself?
Cheers in advance.
Myself and my (ex) wife purchased our first property little over 2 years ago, this was with a 20% help to buy loan and on a 5 year fixed mortgage.
Unfortunately we are now going through a divorce and need to sort the property out. She has moved out, and the house is on the market with a local agent. Judging by their valuation, there is approx 40k equity in the property.
Ideally, I would prefer to send her half this as cash and take on the mortgage myself. I went through the initial process with our mortgage lender and they suggested I could, but only on a 35 year term instead of 25 years. This was fine with me, if anything it was preferred to help keep payments lower while I adjust to paying it alone!
I then spoke to the help to buy scheme who said I can't take out a mortgage longer than the term of the equity loan (25 years), which ruled out the 35 year option, unless I paid the loan off (not feasible with having to shell out half the equity too).
I believe I could continue to afford paying the mortgage on the current payment over 25 years (have additional savings for emergencies etc), but with not meeting the lenders affordability criteria this doesn't look like an option.
If I was to remortgage elsewhere, there is approx £7000 worth of fees due to being tied into a 5 year fixed mortgage.
Has anyone got any suggestions as to any other ideas on how I could take the property + equity loan on myself?
Cheers in advance.
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