Negative equity transfer

dalty123

I am locked into a mortgage with my soon to be ex-husband. The mortgage is approx 15k to 20k in negative equity. Throughout our short marriage I paid the mortgage solely and for the past 3 years have paid everything in relation to the mortgage, bills etc and can afford this although I am in a high interest as the deal we were in ran out a number of years ago.

He is currently officially unemployed and on DLA although is working but no point in going into that. I am buying him out even though he owns half the negative equity legally, as he would not care about the credit rating and as has a free house on benefits etc so if we were to sell he would never pay up and prob go bankrupt with the bank then coming after me.

I have came to the conclusion it’s best I keep the house as it is a roof over my children and I and I can easily afford it as I am in a secure job with a good wage and pension etc (buying him out for a reasonable sum stops him coming after any of this).

My question is the bank said no to me taking it on solely 6 months ago due to affordability, even though I have proof of independence and been paying it solely, is there any way in talking them round if they realise the alternative is me giving it up and them having to come after us for the debt?

I did speak to an advisor who has suggested my father remortgaging and putting this down on my mortgage and paying off the remortgage, ironically doing this would be a couple of hundred less than I am currently paying.

Long winded I know apologies. Any help?

silvercar

Supposedly mortgage prisoners are soon going to be helped:

https://forums.moneysavingexpert.com/discussion/5951011/rule-change-to-free-mortgage-prisoners-could-happen-fairly-quickly-mse-news

I don't know if you are exactly a prisoner in mortgage terms, but whatever comes along may help you.

Your father's offer works as long as there is no change in circumstances that mean you can't afford the repayments, especially if he also can't afford them. There may be tax implications of your father going on your deeds.

foxy-stoat

Not sure why you need to pay him any money just so you can have a mortgage balance higher than the value of the property.

Your better off buying somewhere else and use the money your father would of given you as a deposit for the next place and settling this mortgage. It would be a clean financial break and you wouldnt need to pay your ex anything.

dalty123

Thanks I will have a look at that forum, basically my fathers mortgage is very little and he is going to re-mortgage and pass me the money which I will then use to put down on the house with another lender.

dalty123

Foxy, unfortunately due to his ‘circumstances’ worst case scenario he could get at my pension and then possibly spousal maintenance. So paying the small fee and taking him out of the equation and cutting free is quite appealing and what has been advised, as stated my earning power will increase as I am on a scale and then promotion opportunities where as he is on long term benefits.
It is just the bank are putting the arm in despite the fact I pay every month on time etc, it’s afdordable for me they won’t allow me to solely. So just wondering any way around this other than what I’ve been advised. Part me surely thinks the ultimatum of walking away and handing the keys back to the bank will leave them in a worse position?