Can The Bank Take My Mortgage Away?

FocusAndrew

Hi All, looking for some advice.

My wife and i are going through divorce.
The mortgage on the property is in joint names but, because i know she could not afford it and because i didn't want to risk a bad credit rating, i took over payments of the mortgage since June last year.
I am now seeking to put the mortgage solely into my name but the bank is saying that according to their affordability i cannot afford the mortgage which in reality is incorrect.
I am a company director and my business made a small loss last year due to my soon to be ex wife's financial misconduct, she was doing the book keeping for a while and made a total hash of it.
Prior to that we showed good profit and now we are showing good profit again but the year in the middle is causing the problem with the average.
Given that i have been paying without a problem and that my outgoings will reduce when i move back into the property can the bank really force me to give up the mortgage AND charge me redemption penalties?

Any advice or precedent greatly appreciated.

[Deleted User]

The mortgage won't be taken away (after all, it's money you owe them), but the house could be if you don't maintain payments.

If you can't afford to remortgage, you'll need to stay with your current product.

AnotherJoe

If you will be able to afford t then wait until your companies financial records are sorted and apply again. In the meantime keep paying. Whoever is your wife not going to want a share of the equity?

FocusAndrew

Hiya,

I have always maintained the payments and i have no problem doing so going forwards.
I don't want to remortgage, i am happy with the current product, it simply needs to be in my sole name.
I cannot re-apply given that the divorce will require me to release my wife from the mortgage.

[Deleted User]

The way they assess affordability has been signed off by the regulatory bodies and is deemed the best way to avoid people going in to arrears.

Cases of logic sometimes slip through the net but there has to be a framework where they make affordability decisions.

Some lenders would actually ignore a bad year if there was a good reason for it but your current lender isn't one of them.



You have options, they just aren't the ones you want.



Stay with the mortgage until the accounts improve, or;
Remortgage away and pay a penalty

ACG

I would imagine there will be lenders who will do this with a bit of effort from you and a mortgage broker.

But no the current lender can not pull the mortgage providing you stick to the terms - which means one of you living in the property and paying the mortgage on time.

AnotherJoe

FocusAndrew wrote: »

Hiya,

I have always maintained the payments and i have no problem doing so going forwards.
I don't want to remortgage, i am happy with the current product, it simply needs to be in my sole name.
I cannot re-apply given that the divorce will require me to release my wife from the mortgage.

That IS a remortgage.