Remortgage and separation

metal675

Hi,


I am currently separting from my spouse and we will be applying divorce soo. I also have a property whose initial fix rate mortgage is coming to an end.


We've agreed the details for transfer of mortgage and title between us to transfer both of them from joint to my sole name.

Mortgage advisors have done checks and have confirmed my sole affordability.


The issue is the mortgage fix is coming to end in few weeks, but the process for me to initiate the transfer will take a further 7 to 8 months (as it is dependent on certain aspects to be complete in divorce which wont happen 7-8 months later).


1. If I do product transfer with the same lender now before the expiry of my current mortgage, do I have to pay any charges or penalties to them, say in 8 months time when I initiate the transfer of equity from joint to sole name and if I stay with "same" lender ?

Assume my sole eligibily has been met.


I understand changing lenders can attract penalties.


I am deciding between
- staying on SVR for 8 months and then remortgaging as sole vs
- remortgaging now and then transferring to sole in 8 months time.


The latter is my choice if I know there are no penalties and it is a smooth process other than checking affordability.


Can any expert please advise so I can make a decision?

davidmcn

It will depend on the lender and the terms of the product. So it would help if you told us what those are.

missile

A GOOD mortgage advisor would have "advised" you, but a quick phone call to your current lender will confirm your options.

metal675

Thank You.


To give more background - although we have joint names, but I have been making the entire mortgage payments for over a year.

When I was told a bank would do 'affordability' checks when moving to sole, I got 3 advisors to check and they all confirmed it will not be an issue. I have not directly spoken to the lender as I did not want to put in their record about change in circumstances 'for now'


I will try asking, but was seeking expert opinion of anyone on this forum who speciliases in mortgages or lending and may be able to help.



As I have not yet taken a new product, I am unsure what the terms will be. My current fix rate is ending in few weeks.

Does that mean to switch to a product with no penalties? The ones with lower rates have early payment penalties.


It will depend on the lender and the terms of the product. So it would help if you told us what those are.


The lender is Halifax and the product is 'Halifax remortgage' FBC427 Product Transfer Only



Regards

Thrugelmir

metal675 wrote: »

When I was told a bank would do 'affordability' checks when moving to sole, I got 3 advisors to check and they all confirmed it will not be an issue. I have not directly spoken to the lender as I did not want to put in their record about change in circumstances 'for now'

You will need to apply for a new mortgage in your own right. Whether it's with your current lender or a another one. Question for your existing lender is whether they will allow you to retain your existing product. If you opted to lock in to a fixed term one now.

Penelopa.Pitstop

How about tracker without a fee and then you can remortgage without ERC? Why people only see choice between fix and SVR and forgetting about tracker? It will be cheaper than SVR.