Mortgage with EX

mypurplepants

Hi there,


New to the forum and looking for some advice. My hubby and I have had our offer to buy a house accepted. On preparing for our mortgage appointment I have discovered hubby is still named on his ex's mortgage and a loan they had jointly taken out when they were together.
The terms of their divorce meant he stepped away and she was responsible for taking on the mortgage & loan payments.


Despite divorcing him, she never contacted her mortgage provider to take the mortgage over herself and as far as we are aware they still believe them to be married despite her now married to someone else.


I'm gutted! I'm trying to be positive and will attempt to apply for the morgage on our new place by my own. Going forward I want to ensure he is not liable for any of her debts as she is really bad with money and is subsidised by various 'partners' who pay her bills.


Is there any way that hubby can get himself removed from her mortgage & loan to avoid penalties should she default?


I have advised him to set up a credit score account so he can see what credit is listed to his name as there is every possibility she has taken more credit out fraudulently in his name. He is also trying to get in touch with the mortgage lender to let them know the current situation but I don't think they would remove him from the mortgage as she is responsible for it.


He has stressed the situation to her and her response is 'it is what it is' so no help there.


Any advice would be much appreciated.

BoGoF

This should have been sorted as part of the divorce settlement, did he have a solicitor.

He can't just remove himself from the mortgage. Ex would need to remortgage in her own (or jointly with new partner). There may be various reasons why she can't get a mortgage in new name but as things stand your husband remains liable. He could go to court to force a sale but really needs to see a solicitor.

Brodiebobs

He would have had to have some input when she 'took over' the mortgage in signing his rights away. It seems very unlikely he was unaware of this...

The lender wont just remove him from the mortgage at his request, she will have to be able to prove to them she can finance the mortgage herself/with her new partner or re-mortgage in their own names.

Id also press him what the actual terms of the divorce were, they might have agreed she took on the payments of loans/mortgage, but that's not the same as them being in her name.

Personally I'd be very reluctant to buy a house with someone who is so blase about their financial affairs!

mypurplepants

Thanks for the replies... I remember there was something in their divorce about her taking over the mortgage payments and not having to pay him a lump sum or anything. I'll be hunting for the solicitor's letters this evening to confirm. She's blocked him now and is refusing to communicate so I think the next step would be to consult a solicitor and advise that she will need remortgage or sell. He has been in touch with the mortgage provider who has pretty much confirmed the same

foxy-stoat

I would speak to your broker and advise him of the current financial commitments to get your mortgage offer correct and valid. Your solicitor will just advise you of the extra stamp duty that you will have to pay.

Unless you are intending on putting off buying somewhere while the past is sorted out, it may be some time to resolve though.

mypurplepants

foxy-stoat wrote: »

I would speak to your broker and advise him of the current financial commitments to get your mortgage offer correct and valid. Your solicitor will just advise you of the extra stamp duty that you will have to pay.

Unless you are intending on putting off buying somewhere while the past is sorted out, it may be some time to resolve though.

Thanks foxy stoat - Am I right in thinking if I am sucessful in securing a mortgage on my own as a first time buyer I wouldn't need to pay any stamp duty as long as the property is under 175k? I live in Scotland if that makes any difference


TBH I think going forward I'd rather apply on my own, that way the property is mine should there be any issues with his ex & that mortgage. I wouldn't want the chance of her defaulting on her mortgage to, in a round about way, affect my credit rating through my husband's liability if that makes sense.

[Deleted User]

mypurplepants wrote: »

Thanks foxy stoat - Am I right in thinking if I am sucessful in securing a mortgage on my own as a first time buyer I wouldn't need to pay any stamp duty as long as the property is under 175k? I live in Scotland if that makes any difference

A married couple is essentially treated as a single unit for SDLT purposes so you will still be liable for the extra 3% surcharge due to your husband owning a home at the point of completion of the new purchase

If your husband is removed from his current mortgage then he would have no share in property anymore and you would be able to buy a property in your sole name and not pay stamp duty.
If you bought in joint names without him owning anything else then you would pay 'normal' rates

Thats my understanding anyway, happy for anyone to correct or confirm

Brodiebobs

You may find you are already affected if you have any joint bank accounts etc he will already be associated to your credit report.

If your using any of his money for the deposit and he will be living there i'm sure there will also be hoops to jump through and forms to complete to say he doesn't have any interest in the property in the future.

Id be very cautious of going down this route and make sure you get appropriate advice from a broker and solicitor.