Ex partner wants to get name off morrtgage

Misteek

Hey guys 
My sister needs advice.
She's been divorced for 5 years. She's on an interest only mortgage. She's been paying the interest element of the mortgage for the last 10 year's. Still another 15 years left.... he doesn't pay towards the house which is understandable as he doesn't live there anymore.

So if his name is removed . Would my sister need to remortgge and does that mean they will reasses her affordability ? What if she doesn't qualify? Will she have to sell the house ? Or what happens next ?

Also they never had a repayment vehicle set up to pay for capital at the end of term. So she will NOT have the money to pay it off at the end. Would she needs to get on a repayment mortgage now then??

If she ends up on repayment mortgage she may not be able to afford the repayments on a sole salary. Would that mean she will have to sell and find a cheaper house ? And in that case would it mean the interest she's been paying for 10 years . Would that go to waste. If u get me? Like paying rent and that will be lost..

Hope some clarity.

Thank u x

Thrugelmir

What was agreed in the financial consent order when they divorced with regards to the property? 

getmore4less

If she can't afford it he stays on the mortgage 
A forced sale would take time.
Does the ex have any financial interest. 
Something needs to be done those 15years will fly buy.
How big is the mortgage?
How much is the house worth
What rate
What is the max she can afford.

Misteek

getmore4less said:

If she can't afford it he stays on the mortgage 
A forced sale would take time.
Does the ex have any financial interest. 
Something needs to be done those 15years will fly buy.
How big is the mortgage?
How much is the house worth
What rate
What is the max she can afford.

Ex doesn't have a financial interest at all. He's doing pretty well. But wants to do his own thing with his new family.

Her house is worth about 160k . She's only paying interest atm. She can just about to pay the interest on her sole income. Rate is 2.5 I believe.

blue_max_3

Have a bit of déjà vu about this. Sure it's been asked before.
Anyway, he does have a financial interest as his name is on the mortgage. This should have been dealt with in the divorce, so review what was decided.
Her best option seems to be to sell (with the agreement of the ex) and probably rent if her income does not support buying another place.

[Deleted User]

What's her plan to repay the capital at the end of the mortgage term?

Carrot007

Misteek said:

So if his name is removed . Would my sister need to remortgge and does that mean they will reasses her affordability ? What if she doesn't qualify? Will she have to sell the house ? Or what happens next ?

Yes it's a complete new mortgage, people cannot be removed. He would need to sign paperwork though.

If she does not quality she does not geta new mortgage and the old one stays in palce.

He could force her to sell. It would be costly to him though with no money to gain. But some people might want it for piece of mind. Being on a mortgage for 10 years with no connection is being very nice.

Misteek said:

Also they never had a repayment vehicle set up to pay for capital at the end of term. So she will NOT have the money to pay it off at the end. Would she needs to get on a repayment mortgage now then??

She will not get an interest only mortgage without a definitive plan for how to pay at the end. So replayment sounds the only option and should have been done years ago.

Misteek said:

If she ends up on repayment mortgage she may not be able to afford the repayments on a sole salary. Would that mean she will have to sell and find a cheaper house ?

Well she won't get one unless she can afford it. However moving tyo somewhere cheap does sound like a good option.

Misteek said:

And in that case would it mean the interest she's been paying for 10 years . Would that go to waste. If u get me? Like paying rent and that will be lost..

This was happening anyway, what do you think an interest only mortgage gives back and why?

MovingForwards

So if his name is removed . Would my sister need to remortgge?
-- yes

does that mean they will reasses her affordability ?
-- yes

What if she doesn't qualify? 
-- means no mortgage for that house

Will she have to sell the house ?
-- Possibly

Or what happens next ?
-- not enough information to say

Also they never had a repayment vehicle set up to pay for capital at the end of term. So she will NOT have the money to pay it off at the end.
-- letters have been sent to customers for several years reminding them the mortgage needs to be paid off at the end of the term.

Would she needs to get on a repayment mortgage now then??
-- yes, I/O mortgages tend to require a high salary.

If she ends up on repayment mortgage she may not be able to afford the repayments on a sole salary. Would that mean she will have to sell and find a cheaper house ?
-- she won't get a mortgage offer if a lender does not think she can afford it.

 And in that case would it mean the interest she's been paying for 10 years . Would that go to waste. If u get me? Like paying rent and that will be lost..
-- Nope, not lost as she had a roof over her head.

A few questions:
1. What's her income?
2. How much is outstanding on the mortgage?
3. What's the property worth?
4. Any children? Debts? Bad credit history etc?