Have the mortgage terms changed?

manambo101

My wife and I are getting divorced. I was recently let go from my job. 

I moved out a month ago. 

I want her to put the house up for sale so I can buy my own smaller place with the proceeds but she doesn't want to move. There are no dependants. 

I can't contribute to the mortgage as I must pay my own rent. She is paying the mortgage on her own for the moment, mainly relying on income from renting a room. She won't qualify for a mortgage on her own. 

While she refuses to sell, we can't split up financially as she doesn't have any money to buy me out.

If there's a market crash (in a year) and she can't afford to pay the mortgage, we could both be left with nothing and both of our credit files would be ruined. 

Am I obliged to tell the mortgage lender of my change of circumstances and what are the short / long term implications? 

secla

No you dont have to tell the mortgage company you have lost your job. If it is a joint mortgage you are both liable for the full amount each month, If your wife stops paying then it will show negatively on both your credit files.
You can force a sale through court but its costly

manambo101

Thanks for that secla. 

OK so there's no obligation to inform the lender of such a change of circumstances but what happens if I do tell them? Personally, I think it's a very risky debt, especially relying on a fluctuating income when it was my wage that was the main regular source of income on the initial application. 

What happens if I ask for a transfer of title? Will my credit file be impacted less at least if I get my name off the mortgage in the eventuality where she does default.

I would like to be able to get a mortgage with a decent rate if / when this ends.

Tia, 

secla

only way of getting your name off would be selling the house either to your wife if she can afford to buy you out or to someone else neither of which it sounds like your wife can/is willing to do.
You could try offering her a larger portion of the equity to sell or even move back in if you want to make it awkward, maybe speak to her and explain to her that if she defaults it will ruin both of your credit records and she will likely end up with nothing. but to force a sale you will have to go through court. Mortgage company wont remove you from the title as thats 1 person less to chase for the money

MWT

manambo101 said:

Thanks for that secla. 

OK so there's no obligation to inform the lender of such a change of circumstances but what happens if I do tell them? Personally, I think it's a very risky debt, especially relying on a fluctuating income when it was my wage that was the main regular source of income on the initial application.

Telling them will not trigger any action on their part, their risk is greater for sure, but as long as the mortgage is paid there is nothing they can do, or would want to do.

If you are in the process of getting divorced I hope you are at least getting some guidance from your solicitor, but it may have been a mistake to move out before agreeing to sell the property.

ACG

The lender will not do anything whilst the terms of the mortgage are being met (ie at least one of you lives there and the mortgage is paid). You cant get the lender to force the situation. 

Could you move back in? Maybe have a few mates round every night? Something to make your ex think it is better to draw a line in the sand.

manambo101

secla said:

only way of getting your name off would be selling the house either to your wife if she can afford to buy you out or to someone else neither of which it sounds like your wife can/is willing to do.
You could try offering her a larger portion of the equity to sell or even move back in if you want to make it awkward, maybe speak to her and explain to her that if she defaults it will ruin both of your credit records and she will likely end up with nothing. but to force a sale you will have to go through court. Mortgage company wont remove you from the title as thats 1 person less to chase for the money

OK, that's fair enough. I can see why some couples are forced to live together during a separation. 

I have started the divorce process on the www.gov.uk website. I know this is possibly moving on to a different topic but is this guaranteed to last a maximum of 6 months including the contested financial order? At least this would be one way for me to make a clean break in a reasonable time frame.

Many thanks for any replies, 

manambo101

ACG said:

Could you move back in? Maybe have a few mates round every night? Something to make your ex think it is better to draw a line in the sand.

Ha. Moving back in is not something I have the stomach for. Appreciate the thought tho 👍 sounds attritional! 

manambo101

MWT said:

manambo101 said:

Thanks for that secla. 

OK so there's no obligation to inform the lender of such a change of circumstances but what happens if I do tell them? Personally, I think it's a very risky debt, especially relying on a fluctuating income when it was my wage that was the main regular source of income on the initial application.

Telling them will not trigger any action on their part, their risk is greater for sure, but as long as the mortgage is paid there is nothing they can do, or would want to do.

If you are in the process of getting divorced I hope you are at least getting some guidance from your solicitor, but it may have been a mistake to move out before agreeing to sell the property.

Thanks MWT. 
I think my moving out was a foregone conclusion given how things were. 

I'm wondering if going through the process of the contested financial order through '.gov.uk' divorce is a way of forcing the sale? The question becomes is there a time limit for these .Gov divorces or can they go on for as long as one side wants to drag it out? 

Tia, 

ACG

manambo101 said:

ACG said:

Could you move back in? Maybe have a few mates round every night? Something to make your ex think it is better to draw a line in the sand.

Ha. Moving back in is not something I have the stomach for. Appreciate the thought tho 👍 sounds attritional! 

Do you have a relative who would happily sit there and walk around in underwear and a stained vest smoking cigars or something a little more tropical? 

I know it sounds awkward, but you want to draw a line in the sand (understandably) and at the moment there is no incentive for your ex to do that. It sounds like the ex is not going to do the reasonable thing and allow you to move on, so you need to force the situation some how. That could be financial, allow the ex to take a larger share or make it unbearable. 

The alternative is that you go through the court process, but that will take time and cost money. 

manambo101

That's why I'm wondering if the '.gov.uk' divorce is a way of forcing the sale. It's supposed to take 6 months which I would settle for. ACG said:

manambo101 said:

ACG said:

Could you move back in? Maybe have a few mates round every night? Something to make your ex think it is better to draw a line in the sand.

Ha. Moving back in is not something I have the stomach for. Appreciate the thought tho 👍 sounds attritional! 

Do you have a relative who would happily sit there and walk around in underwear and a stained vest smoking cigars or something a little more tropical? 

I know it sounds awkward, but you want to draw a line in the sand (understandably) and at the moment there is no incentive for your ex to do that. It sounds like the ex is not going to do the reasonable thing and allow you to move on, so you need to force the situation some how. That could be financial, allow the ex to take a larger share or make it unbearable. 

The alternative is that you go through the court process, but that will take time and cost money. 

That's why I'm wondering if the '.gov.uk' divorce is a way of forcing the sale. It's supposed to take 6 months and basically cost £1000 which I would settle for. I'd like to know in reality if it works in situations like this. 
(no I don't have any relatives that would do anything like that)
Thanks for the thought tho 👍👍