Mortgage with current arrears

GlitteringGold

Does anyone offer mortgages to people who have current mortgage arrears? 

If someone currently had arrears of say £10k, had missed 5 payments for no good reason this year, and had missed 7 payments for no good reason the year before, how soon would that person be able to remortgage with another company? 

Thrugelmir

 Why would anyone intentionally screw up their own credit profile? Mainstream lenders little possibility. Maybe options elsewhere though.  Though expect to be treated as a bad credit risk and pay for the privilege. 


 

yksi

"No good reason" seems to suggest it isn't you who is in this position - is it a partner hoping to get a new mortgage, a family member, a sworn enemy?

This person has demonstrated poor money management "skills", if they had no good reason to not bother paying their responsibilities on time... harsh, but this is how lenders view things. So even though they might be able to remortgage tomorrow, they should be prepared for most lenders not wanting to touch them, and those who do will charge high interest.

You didn't say why they want to remortgage, but if it's because they are on a fixed interest and want a lower rate then I would say they have no chance.

GlitteringGold

I co-own a house with this person and I want to be released from the mortgage. They have been saying they will release me for over 10 years but just keep missing payments. Transfer of equity not an option with the current sub-prime lender. 

So some lenders will lend while there are current arrears? They wouldn’t need to be cleared first and the account be up to date? 

Thrugelmir

You are jointly and severally responsible for the mortgage payments. Playing the other person card doesn't wash. 

haras_n0sirrah

Just looking at our criteria guides even the 11% lenders are saying no more than 2 missed mortgage payments in the last 12 months.

[Deleted User]

Thrugelmir said:i hi

You are jointly and severally responsible for the mortgage payments. Playing the other person card doesn't wash. 

Come on !! The OP is effectively trapped in this mortgage and has been so for the last 10 years. No doubt doesnt live in the property, desperate to move on with their OWN life but the prat on the other side of the mortgage is playing games to prevent them from doing so. Its possibly another form of abuse and control in a subliminal way.
OP - even if another mortgage company would take it over, I doubt the other person would agree. The credit is ruined anyway. I definitely would not be paying a penny towards this mortgage if I didnt live there UNLESS ( very important ) I had been ordered to by a DIVORCE COURT ORDER. If not it would be nothing from me. 

Thrugelmir

Densol said:

Thrugelmir said:i hi

You are jointly and severally responsible for the mortgage payments. Playing the other person card doesn't wash. 

Come on !! The OP is effectively trapped in this mortgage and has been so for the last 10 years. No doubt doesnt live in the property, desperate to move on with their OWN life but the prat on the other side of the mortgage is playing games to prevent them from doing so. Its possibly another form of abuse and control in a subliminal way.
OP - even if another mortgage company would take it over, I doubt the other person would agree. The credit is ruined anyway. I definitely would not be paying a penny towards this mortgage if I didnt live there UNLESS ( very important ) I had been ordered to by a DIVORCE COURT ORDER. If not it would be nothing from me. 

The bottom line is that the OP is contractually tied into the mortgage.  Whether they like it or not.  This a mortgages forum, other matters are better dealt with in the most appropriate one.  Forced sale of the property is always an option if there's an intransigent partner involved.  

haras_n0sirrah

I think I would force a sale, clear the arrears and then time is a healer 

yksi

I agree with Densol. Force their hand. Ten years! It's time to walk away from it, they are ruining your credit and it will stay there for another six. If that means you need to pay a solicitor and hand it over, so be it. You will feel better for it.

ACG

Depending on the LTV there might be a lender for you to do this with as it would make sense you are being done over by an ex. 
But the person living in the property, I dont think there is any chance they could get a mortgage until the arrears are cleared for 12 months. 

Not easy/straightforward though, if the other party is in agreement though it might be easier to buy them out and take ownership of the property yourself and then bang it up for sale. I dont think you would get more than maybe 70-75% of the property value - possibly less.