Cannot Afford Mortgage (On Paper)

Dark_Immortal_Screams

After some advice. I have a mortgage with my ex partner (since 2008). We've been split for 5 years. She's not paid the mortgage in the last 5 years, however I HAVE been paying it. I have never missed a payment in 10 years (nor will I in the future). She wants nothing to do with the house and has requested to be removed from the mortgage. I am unable to do this because, according to my lender, I cannot afford to pay the mortgage. As you can understand, this is incredibly frustrating as I am currently paying the mortgage from my earnings. Also, if I was to remortgage (minus the EP), it would be at a lower rate than my current, which in turn would mean lower monthly payments. My credit score is exceptional, however I have a minimum wage job. It frustrates me that I can clearly afford to pay the mortgage but they just ignore the evidence and tap on the computer for a "computer says no" answer. Is there anything I can do about this?

Thrugelmir

Dark_Immortal_Screams wrote: »

It frustrates me that I can clearly afford to pay the mortgage but they just ignore the evidence and tap on the computer for a "computer says no" answer. Is there anything I can do about this?

Unfortunately your interpretation of affordability and the lenders differs. The lender will be using what if scenarios for potential future events. This criteria is set by regulators and issued to lenders as guidance, i.e. expected to follow as a minimum. Failure to do so leaves the lender exposed. Past history of you paying every month has no bearing.

Could you afford the mortgage at 6% -7% interest rates? Not the current extremely low levels.

ACG

As above, lenders are assessing you based on a rate with a buffer built in for rate rises - they have to.

However, a couple of things you could look at:
Increasing the term,
Switching lender,
Choosing a 5 year fixed rate (or longer) with certain lenders can mean you are assessed on the rate payable rather than 6-8%.

Speak to a broker if in doubt.