Re-mortgage after ex puts mortgage into arrears

Ravinder15

My sister's ex-husband has put their joint mortgage into arrears. She has now paid the arrears herself to avoid his default on the mortgage to impact her credit rating. Unfortunately, as it's a joint mortgage then she is impacted. They have had the mortgage for over 15 years with no payment issues until they went through a divorce and before the financial settlement he defaulted on his portion of the mortgage payments.
Following the financial court hearing, she gets the matrimonial home (because she has 3 kids). She needs to release him from the mortgage and have the property transferred into her name. However, this cannot happen until she can get a mortgage due to the bad credit rating and the incumbent mortgage provider will not simply transfer the mortgage into her name because of the defaults, despite no previous payment issues until the divorce, and knowing that it was her ex-husband that defaulted.

Is there any way that she can convince her current mortgage provider to understand these circumstances?

Via a broker, she has been offered an interest only mortgage at 9-10% interest rate!!!

Are companies that insensitive to these type of circumstances! She works, and wants to keep working, so she can pay her way and support her 3 children, and doesn't want to be a charity case reliant on Government hand outs...but it's not working in her favour!

Any advice would be much appreciated.

many thanks

Thrugelmir

Suggest she consults with solicitor. As matters aren't as you describe. As in all probability her ex will remain on the mortgage.

Ravinder15

Thrugelmir wrote: »

Suggest she consults with solicitor. As matters aren't as you describe. As in all probability her ex will remain on the mortgage.

Thank you for your reply. She does have a solicitor but unfortunately, they cannot help with regard to the poor credit rating her ex has placed on her. In accordance with the court order she needs to release him from the mortgage and deed, and get a mortgage herself. She has found a repayment mortgage but at a huge interest rate.

I'm just so surprised with a great track record of payment until the couple of defaults made by her ex, that the bank can just turn their back on you and not look at the details of her case.

Thrugelmir

he defaulted on his portion of the mortgage payments.

There's no portion. A mortgage is a joint and several liability.
That's the view any lender will take.

silvercar

This really is his problem more than hers. She is in the home, she is paying the mortgage. So the property is safe. He, on the other hand, has the liability of a mortgage on a property he doesn't live in and will therefore struggle to buy a property elsewhere.

Ravinder15

silvercar wrote: »

This really is his problem more than hers. She is in the home, she is paying the mortgage. So the property is safe. He, on the other hand, has the liability of a mortgage on a property he doesn't live in and will therefore struggle to buy a property elsewhere.

Thank you...you are right in that she is safe and he is at a disadvantage because he has his name on the mortgage which is impacting his ability to get another mortgage...consequently, and as per the court order his solicitors are pushing for her to release him for the mortgage and deeds of the home. Which brings her to the problem of simply transferring the mortgage into her name because of his defaults. As such she has had to use a broker who has found her an interest only mortgage with huge interest rates.

Thrugelmir

Ravinder15 wrote: »

In accordance with the court order she needs to release him from the mortgage and deed, and get a mortgage herself.

Was any time period specified. The Court in their capacity as guardian of the children would not impose a condition which put their home at risk. More often or not the status quo is maintained until the children have left full time education.

Ravinder15

Thrugelmir wrote: »

Was any time period specified. The Court in their capacity as guardian of the children would not impose a condition which put their home at risk. More often or not the status quo is maintained until the children have left full time education.

the date has passed - it was in November (2 months after the court hearing) but subject to securing a mortgage. As per my comments above it has been extremely difficult to get a mortgage in her name.

My sister has another property solely in her name, which is used for rental purposes...so her ex is getting that property. As he is still tied into the family home mortgage, plus his defaults, then he is probably struggling to get a mortgage to take on the other home...but by releasing himself from the family home mortgage could increase his chances of getting a mortgage.

silvercar

My sister has another property solely in her name, which is used for rental purposes...

Any CGT liability on this?

Ravinder15

silvercar wrote: »

Any CGT liability on this?

I doubt it, because she is not selling it to him, just transferring it into his name and closing her mortgage account on it