Mortgage Liability

Deenport

Mortgage value agreed by bank based upon husband’s income. Wife’s income very low, under £250 a month. 

Couple separate, ex husband demanding ex wife now pays towards mortgage until house is sold. Husband claims he can no longer afford payments alone. 

Where does she stand with bank if she can’t afford to make any contribution to the payments? 

Thank you

Deenport

Deenport said:

Mortgage value agreed by bank based upon husband’s income. Wife’s income very low, under £250 a month. 

Couple separate, ex husband demanding ex wife now pays towards mortgage until house is sold. Husband claims he can no longer afford payments alone. 

Where does she stand with bank if she can’t afford to make any contribution to the payments? 

Thank you

Wife is currently trying to get a new job with F/T hours, however salary will still be quite low as she has little experience and struggles with dyslexia. She has been working through a free English course at local library 

TheSpectator

Deenport said:

Deenport said:

Mortgage value agreed by bank based upon husband’s income. Wife’s income very low, under £250 a month. 

Couple separate, ex husband demanding ex wife now pays towards mortgage until house is sold. Husband claims he can no longer afford payments alone. 

Where does she stand with bank if she can’t afford to make any contribution to the payments? 

Thank you

Wife is currently trying to get a new job with F/T hours, however salary will still be quite low as she has little experience and struggles with dyslexia. She has been working through a free English course at local library 

If the mortgage is in joint names (not clear if it is?) then both are jointly liable for the payments and both of their credit files will be damaged if payments are missed.

Deenport

TheSpectator said:

Deenport said:

Deenport said:

Mortgage value agreed by bank based upon husband’s income. Wife’s income very low, under £250 a month. 

Couple separate, ex husband demanding ex wife now pays towards mortgage until house is sold. Husband claims he can no longer afford payments alone. 

Where does she stand with bank if she can’t afford to make any contribution to the payments? 

Thank you

Wife is currently trying to get a new job with F/T hours, however salary will still be quite low as she has little experience and struggles with dyslexia. She has been working through a free English course at local library 

If the mortgage is in joint names (not clear if it is?) then both are jointly liable for the payments and both of their credit files will be damaged if payments are missed.

Thank you for clarifying. Yes mortgage is in joint names

silvercar

Any kids? If there are it may complicate things. Spousal maintenance is rare, but a possibility. Financial settlement as part of the divorce. Bottom line is that if she can’t afford the mortgage and is living in the house alone, she will probably need to agree to sell the property and live somewhere she can afford.

Exodi

A lot of detail missing, but to have a stab:

Joint mortgage = both liable to pay the mortgage (there's no rules that say that each person must pay a certain amount - they are both responsible for ensuring the mortgage gets paid and if it doesn't, it will trash both parties credit files and both will be pursued for arrears).

There are other things to consider - children as silvercar mentioned, and also the habitation status? Specifically, is she still living in the house? It sounds like it.

It would make sense why he can't afford to (or be keen to) pay the full mortgage on top of rent if he's living elsewhere.

I appreciate you say she can't make any contribution (not a single penny?), so would suggest she prioritises looking for full time work and/or getting a lodger in (or have the ex move back in just until the house is sold).

If both parties are unable or unwilling to make up the full mortgage payment between them, eventually the house will be repossessed and likely sold at auction - potentially causing a massive hit to equity (and trashing both parties credit files as mentioned above, which could cause issues if they planned on repurchasing in the near future).

Hoenir

Ring the lender and ask for a temporary suspension of mortgage repayments due to the circumstances of the seperation. Provide evidence that the property is being actively marketed. 

Exodi

Hoenir said:

Ring the lender and ask for a temporary suspension of mortgage repayments due to the circumstances of the seperation. Provide evidence that the property is being actively marketed. 

I'd never heard of that before - would this just effectively be a payment holiday or a separate instrument?

Good idea in either case - even asking to temporarily move to IO if that's the only option would be better.

WYSPECIAL

Exodi said:

Hoenir said:

Ring the lender and ask for a temporary suspension of mortgage repayments due to the circumstances of the seperation. Provide evidence that the property is being actively marketed. 

I'd never heard of that before - would this just effectively be a payment holiday or a separate instrument?

Good idea in either case - even asking to temporarily move to IO if that's the only option would be better.

It's a payment holiday. A lot of lenders will support in this way when a couple are separating, especially if there is plenty of equity in the property. Usually reviewed after 3 months when they will want more details of incomes and outgoings if continued help is wanted.

MEM62

Deenport said:

Couple separate, ex husband demanding ex wife now pays towards mortgage until house is sold. Husband claims he can no longer afford payments alone. 

Not unusual.  If he is the one that has left the marital home he may have additional costs elsewhere.

Deenport said:

Where does she stand with bank if she can’t afford to make any contribution to the payments? 

There is no he and she.  They both stand together in terms of the mortgage as they are both jointly and severally liable.

Mortgage aside, if the marriage is dissolving then she is going to have to address her income as she will be be not able to live on £250 a month - even if the ex could afford to fund the mortgage.