Mortgage, Separation and change of parties

skemp1

Hello,

Not sure if this is the right place but here we go anyway.

Me and my wife are divorcing and are separated (me living in a different address, it's amicable and all that)

I have a problem with the mortgage though.

It is due for renewal in September and it's going to go on Virgin Moneys standard variable rate, this means that it will rise from £677 a month to £880 + a month. This obviously is not ideal for either.

If I get a fixed rate for 2 years the mortgage will drop to £510 a month.

The issue is that my ex does not earn enough to take the mortgage on as it is at the moment as part of the settlement I am taking the mortgage down £30k so she can take it on herself, therefore releasing me form the mortgage. This should happen Jan/Feb if all goes well with the consent order.

Obviously we don't really want to pay an extra £200 a month and if it's fixed for 2 years there is a good saving to be made on the current mortgage so I'm thinking there must be another way? Is there?

I would need a mortgage that I can pay £30k off early in the new year without any early repayment charges and then remove myself from the mortgage and title deeds of the house early in the new year.

Any ideas or help would be appreciated.

Thanks.

Lilla_D

Most lenders and deals allow 10% overpayment a year, including the Virgin deals. However, based on the figures above, it doesn't sound like that you have a £300k mortgage, which would allow 10% = £30k overpayment per year.

As an alternative, there are deals without an early repayment charge (ERC), so you could perhaps take one of those. This way you would be able to remortgage to her name at a lower mortgage level without being hit by an ERC when the time comes.

sparkey1

Virgin money send a letter to mortgage customers 120 days before they end their deal inviting them to log on and sign a new deal. If you dont have a letter, it sends you to here.

See https://uk.virginmoney.com/virgin/mortgages/existing-customers/switch-your-deal/

There are options that include unlimited overpayments. Although its possible your options may be different to mine, you wont know until you logon.

Once you select a deal, they post a form to you to sign, and then its done, so that might be a good option for you at the moment.