Financial redress

paulie38

:Hi.
 In 2000 I got divorced and as part of the proceedings, my name was removed from a joint mortgage and transferred solely to my ex wife's name. On the transfer document from the mortgage provider, there was a special condition that I would not be released from my covenant with the provider. I understood this as if my ex wife defaulted on the mortgage, I would also be a defaulter & liable for the mortgage. Since then, when seeking another mortgage, this condition has prevented me from getting one as I have been told I would need to prove income to repay a new mortgage AND the old mortgage if it went in to default. I have recently sought clarification from the mortgage provider & they now state that I should have been removed from the covenant when the mortgage was transferred to my ex wife. Do I have any legal redress with the mortgage provider for not being able to secure a mortgage in the past?

DE_612183

Not sure about redress - are you expecting them to remove you from the Covenant that you agreed to?

How much is outstanding on the old mortgage, I guess you could argue that after 24 years they mortgage should be paid off in full, and if there is anything outstanding the o/s loan to  valuation % must be very low. 

paulie38

My point is, taking the original mortgage out of the equation, I could have secured a mortgage with my 2nd partner & could now be the owner of my own home as our joint income was provable to cover it. As the "special condition" on the transfer of the original mortgage stated I would not be released from the covenant with the lender, I had to declare this on any mortgage application & prove I could cover the costs of that mortgage if it defaulted. As I could not prove this, I couldn't get a mortgage. So the misinformation on the transfer document has prevented me getting a mortgage. 

DE_612183

what are you after?

1. A mortgage?
2. Compensation?

If it's 2 - I don't think you've got a leg to stand on as you entered into that agreement - you could try a no win no fee solicitor I guess.

MWT

paulie38 said:

Do I have any legal redress with the mortgage provider for not being able to secure a mortgage in the past?

Presumably you had a solicitor involved in the process acting for you?

If so then they would have reviewed what you were signing at the time...

I would also suggest not putting too much faith in a reply from a frontline CS agent as if this was included as a 'special condition' it suggests that the lender really did want you on the hook at the time and the CS agent may just be answering this as a general question and yes, in general when you are removed form the mortgage you do not retain ongoing liability, but that is just a general answer...

ACG

I had a client in a similar position. 
I did find a lender, but rates are awful. 

I dont think you have any right to redress though. 
Did you ask the lender to change anything or just assume something would be done? 

penners324

Has the mortgage been repaid yet? If so this condition is irrelevant 

Hoenir

paulie38 said:

:Hi.
 In 2000 I got divorced and as part of the proceedings, my name was removed from a joint mortgage and transferred solely to my ex wife's name.

Winding the clock back. Did you have children that remained with their mother ?