Stuck on joint mortgage, advice needed!

Horatio02

Hi

I'm in the final straight of divorcing my ex. All the necessaries have been agreed, my ex is getting the house and in return my pension is untouched,both parties happy with the outcome. However, she fails on affordability to remortgage on her own, she can afford the repayments currently without issue, and has been doing so for the three years we have been apart. Although she has a new partner, they have for whatever reason decided not to remortgage together. Therefore, I agreed to remain on the mortgage until such time she remarried or other triggers come into play, this being until my youngest is 18. As part of the deal, she will sign an indemnity, removing any responsibility for the repayment from my shoulders, I am purely just on the mortgage to allow her to remain in the property, which I am OK with. I have a new partner who has her own place and will contribute towards that as if we are joint owners. The question I have is am I able to be a second person on a mortgage with my new partner whilst my name is on the old one, even though I'm not liable for any of the repayments? Any info or advice is appreciated.

AnotherJoe

IANAL but I fail to see how you can sign an indemnity releasing you from responsibility to pay the mortage. Because that would require the lenders agreement. At present if your wife stops paying the mortgage the lender can come to you. Why would they give that up?

Horatio02

I've asked the exact same question but have been assured its correct. As I'm paying them enough I'd hope they've got their facts right!

mrginge

Horatio02 wrote: »

I've asked the exact same question but have been assured its correct. As I'm paying them enough I'd hope they've got their facts right!

Did the lender tell you that?

normanna

The Lender won't release you from the mortgage. Your ex will need to remortgage on her own - maybe she can consider moving to a cheaper property? Not sure what the indemnity is you've mentioned as the Lender will not remove your name. You are still liable to pay if your ex doesn't. This will affect your affordability for a second mortgage.

BoGoF

Have you had any legal advice because the indeminity, unless it came from the lender, isn't worth the paper it is written on.

Carrot007

All the indeminity will do is allow you to (very) likely win in court if your ex stops paying and the bank forces you. Paying you back you of course be subject to them having the money.


You are still jointly liable and as such would be classed as an outgoing and having a second house on any other mortgage/purchase.


Whoever suggested and sold you the indeminity really does not have your best interests in mind. Yes it's better than nothing but not much. Especially if you don't have money to burn in case you need to do something.

TBagpuss

The indemnity relates to you and your wife, not to the lender. I would imagine that it says that if you end up having to pay anything to the lender, you are then entitled to recover those payments back from your ex.

It is not uncommon in situations where one partner is staying in a property with children, and would normally mean that you would be able to get back anything you'd paid, out of the sale proceeds when the house is sold.

In terms of whether you can be on another mortgage that would be down to the new lender, but they would take into account the existing mortgage as you still have liability to the lender.

enthusiasticsaver

I would also query whether the advice you have been given is correct. If you remain on the mortgage you are liable for repayments. Any release to this liability has to come from the lender and as you say if your ex cannot take on the mortgage on her own this is obviously an issue. There is nothing to stop you taking on a new mortgage with your new partner but they will count your existing mortgage on your exes property as an existing liability so this may reduce the amount they would lend. However if your current partner already holds the mortgage and you are not looking for additional borrowing this may be ok. If you go on the mortgage you will also need to go on the deeds. Is your new partner ok with that?

Horatio02

I've got hold of my solicitor this afternoon for clarification and it's exactly as you say, got my wires crossed with all the back and forth and info coming my way.

Horatio02

Yes, it was her suggestion as it looks like I'll be unable to get a mortgage on my own. We'll be sorting out a pre nup of sorts so that everything we go in with we take out in the event of a split. Anything over and above will be split 50/50. The indemnity is as a few have mentioned, it allows me to recoup anything I may have to pay towards the mortgage from the proceeds of the eventual sale, confirmed by my solicitor this afternoon. Wires crossed on my part