advice on remortgaging under separation

Alfiemeg1

this is a long post so bear with me, 

i pay all the bills and OH money was for food/fuel etc, they have got themselves into a load on debt £40,000 and taken out £10,000 in my name, they now have cifas markers on there name and are under a repayment plan, we have separated but are still co-habiting which will likely go on for another 1-2 years while they attend gamblers anonymous and have mental health help, as neither of us can truly afford to live alone at the moment in time and we haven't decided on our long term future yet

ive paid the mortgage and have been overpaying by 35% a month for years now so its in good shape, all fraudulent accounts are being removed from my name, while this was being investigated i have been banned for life as a customer with my current bank RBS as they initially thought i was complicit which has now been proven by the ombudsman that I am not, but they do not have to reinstate me as a customer. 

my question is this, how do i remove OH from the mortgage so I can remortgage next year, and if we do split it will be 50/50 shares, we have no dependants, but i would like to keep a roof over my head while im making my mind up. 

HobgoblinBT

I am sorry to hear about your situation.  Each of the things above are stressful on their own and to come all at once must be truly awful.

On the practical side you probably need to see a solicitor.  A lender will not remove a borrower from a joint mortgage without it being repaid or an arrangement to rearrange the mortgage (remortgage) is agreed. Why should they loose the ability to hold all borrowers jointly and severally liable for the loan unless an acceptable arrangement can be made?

To be fair to both of you, the split of equity should take account of any agreement made prior to taking out the mortgage, deposit contribution by both parties, the contribution to the mortgage repayment and/or household expenses and if not already fully covered, any losses due to “fraudulent” activity”.  

You are in the good position of having made overpayments so this should go some way to demonstrating your ability to afford a mortgage in your sole name. 

If your Ex continues to live in the same house, you should also draw up some sort of lodgers agreement to agree any rent/ contribution agreed between the two of you plus a share of the bills.  Have a look at “the landlord zone.co.uk” that includes specimens of many types of forms including lodger agreements” or your solicitor might provide a suitable form (for a fee).  

Above all, don’t be tempted to release additional equity to take on any of your ex partner’s debt.  It is NOT  selfish to look after yourself in your situation. 

The timing of the remortgage should take account of any deal you are on now and the deal you may be offered for a remortgage ie you might not want to swap a low rate deal for a higher rate deal.  

Hope that helps.

Alfiemeg1

ok thanks, ill get looking at solicitors I think