Please help with mortgage problem

IanG73

Hi,
I am recently divorced, however I am still named on my ex wife's mortgage although I don't financially contribute to any payments. She pays everything and has done for over 4 years.

I am now looking to buy a house, although I haven't spoken to an IFA yet, I was holding someone could offer me some advice. Am I right in thinking I won't be able to get a mortgage while still named on my ex-wife's mortgage despite not paying anything towards it?

Thanks
IanG

AnotherJoe

Depends how much you earn. There's no specific bar on it, it just depends on affordability and you are liable to pay that mortgage so that will be taken into account. Practically speaking, you won't be able to get one unless you earn "a lot".
Also, note you'll have to pay the extra 3%SDLT for buying a second home.

Are there children involved ? If not, you really need to get out of the first mortgage.

IanG73

Yes children are involved hence me staying on the mortgage in the first place. I've looked at the rental option but really wanted to buy. I don't earn 'a lot', but I do ok. So the reality is, I won't be able to get a mortgage for myself until my name is off the old one despite me paying £0 on it?

glosoli

That is correct, the payment will have to be fully factored into the expenditure, if you wanted it any other way you need to come off the existing mortgage.

AnotherJoe

Could your ex afford it by herself or more to the point, would she meet affordabilty criteria for a sole mortgage, since she obviously is affording it right now. ? If so you might be better off giving her whatever equity is currentiy in the house to let her buy it and cut this financial tie.
If not, you are likely screwed until you earn "a lot" or the kids turn 18.

Thrugelmir

IanG73 wrote: »

Hi,
I am recently divorced, however I am still named on my ex wife's mortgage although I don't financially contribute to any payments. She pays everything and has done for over 4 years.

You are still liable for the debt though. In the eventuality that your ex is unable to meet the repayments. As far as the lender is concerned. What's agreed between your you and your ex has standing in this regard. Was this arrangement part of the divorce settlement?

IanG73

so would that be the same situation when looking to rent, as I understand a credit check is done then also?

There is work being done to release me f ok the mortgage, but may take some time so in the meantime I want to rent a home but I'm now worried the mortgage I'm named on will also affect my chances to rent even though I don't pay anything towards it and haven't done for years?

AnotherJoe

I think credit check for rental will be less exacting than fora mortage and to an extent any issues may be overcome with a larger deposit

dimbo61

The credit checks for renting are very different from buying.
If you produce 3/6 months of bank statements they won't have any mortgage payments coming out each month