Remortgage alone - is it realistic?

SophMa1

Hi all, currently divorcing. 

Have a joint mortgage and outstanding balance is £228, house value £290. 

Husband agreed to sign house and current equity across for me and children to stay. 

Stupidly I applied for a transfer of equity based on the current mortgage term/deal in view of extended the mortgage term from the current 17 years to 13 years once the current deal is up for renewal next April. My current lender has declined based on affordability. 

I have a salary of £44k with a second income (nurse bank) £18-22k per year. 

Outstanding credit card/loans of £21k. Credit file is fine with the exception of 3 late payments due to switching from a joint account to a single account. 

Do I have options to remortgage on my own or is a reality check required and it’s time to sell up?

Thanks in anticipation 

gwynlas

Your figures do not make sense ie current 17 years to 13 years.

You are best talking to a mortgage broker as essentially you are talking about affordabilty on 5 times your main salary.

You could look at a longer term given you will be eligible for NHS pension and overpay if you can afford it.

Hoenir

No reason for your husband not to remain on the mortgage until such time as you are able to remortgage it into your own name. Reducing the unsecured debt you owe would speed up the process. 

silvercar

why not go for a longer term? It would make the monthly payments more affordable.

ian1246

Hoenir said:

No reason for your husband not to remain on the mortgage until such time as you are able to remortgage it into your own name. Reducing the unsecured debt you owe would speed up the process. 

That would require his agreement and prevent him getting a mortgage of his own to meet his own housing needs - something a court absolutely would recognise as well. Courts like clean-breaks in the modern age.

I'd also caution the OP not to look a gift horse in the mouth - it sounds like she has a high income (£60,000+) and with the husband willing to sign over the equity, is going to walk away with a large chunk of the assets, since her NHS pension will no doubt be worth a substantial sum of money in itself (potentially £100,000's in transfer value, if she's been in the NHS for many years).

Of course it's possible her ex-husband earns a lot more and has a more substantial pension value - but statistically it is unlikely (a combined income between the 2 jobs of £60,000+ already puts her in around the top 15% of earners in ths UK).

The point i guess i m trying to make is reach an agreement as quickly as possible & get it embedded in an financial order - since if solicitors become involved IF the OP is the higher earner with a vastly inflated pension (vs. Her ex Partner), it may well end up with her having to give up a chunk of her pension, loosing the equity in the house AND potentially even Spousal maintainance on that income, depending on what her ex earns.

The starting point for divorce is 50/50, only moving from that based on need...

(I speak from experience with the above- £46,000 annual income & 8 years in a public sector pension. Result? 41:59 split on the equity in ex-partners favour (she earnt substantially less) & had to sign over 18% of my current pension value (pensions total transfer value from 8 years service - £68,000) - overall it still worked out to a 50 :50 split of assets over the marriage, so was fair. I was warned by the Solicitor on a £46,000 income i was on the cusp of Spousal maintainance territory).

SophMa1

Hi All 

Thanks for the comments. 

Yes I should have said I am looking to take the mortgage up from 17 years to 30. 

He earns slightly less than me but his pension pot is not as good as mine in the NHS.

The reason he has agreed to transfer the equity is due to the fact he had an affair, we have 3 children who will remain with me and in return for transferring the equity to me his request is that he is not required to make and child maintenance payments towards his children (approx 5-600 month)  - fair enough deal to me. 

He is not in a position to remain on the mortgage and obtain a second mortgage on his own property, if he stays on the mortgage he stays put. The living arrangements are not great, I’m upstairs, he’s downstairs, the environment is hostile! It’s a mess… 

Not planning to go for each others pensions. 

My credit card debt is a huge factor and my main salary is sacrificed due to a car scheme. My first job salary is actually 56k. I am currently considering returning the car and working on reducing my credit card debt before progressing this further as I am under no illusion that my current position is far from ideal. 

Thanks for the feedback though it’s really helpful 

ACG

17 year term with 3 kids - it could be a tough ask. Not necessarily impossible, but you would need to check affordability calculators (or use a broker). 

SophMa1

ACG said:

17 year term with 3 kids - it could be a tough ask. Not necessarily impossible, but you would need to check affordability calculators (or use a broker). 

Thanks. The term is currently 17 years joint but I am hoping to take the term up to 30 years as a solo application. Feel like I need to improve my current financial position first as the alternative option is to sell 😢

Hoenir

ian1246 said:

Hoenir said:

No reason for your husband not to remain on the mortgage until such time as you are able to remortgage it into your own name. Reducing the unsecured debt you owe would speed up the process. 

That would require his agreement and prevent him getting a mortgage of his own to meet his own housing needs - something a court absolutely would recognise as well. Courts like clean-breaks in the modern age.

The Court will assume guardianship of the children and prioritise their welfare. Ahead of any agenda by the warring parties. I would recommend that the OP seeks advice from a Family Law solicitor rather than being directed by the  other half.