Mortgage following a relationship break up
Leonmc0708
Posts: 4 Newbie
Hi There and thanks for reading and replying to this.
A friend of mine really needs help.
She has a mortgage in joint name with her ex partner who left in late 2017, November to be precise.
She has since then paid all mortgage payments on the property in full (c£600 per month).
She is due to come out of a fixed rate for the mortgage in August so in April she contacted Barclays via an independent advisor and was told to “call back in June” as it was “too soon”.
In June she contacted them again and was told by Barclays they won’t deal with an independent advisor on a remortgage.
She contacted Barclays in-house advisor who has suggested she “doesn’t meet affordability requirements” to get an equity release and have her ex removed. This is despite her paying this amount for the last 19months.
She has asked for a “rate switch” but they won’t allow this without consent of the ex partner who has refused to tick a box and allow it to be done. It is because he is bitter about the breakup.
There is a challenge on the credit file in that a Barclaycard balance that was paid off in April Has not been updated on her file (the irony that it’s the same company doing this slow response is the one who will refuse her application)
So - if she doesn’t complete the remortgage and remove her ex’s name her payments will go up from c£600 a month to c£900 a month.
I am sure that this is irresponsible lending, refusing based on affordability means it would be even less affordable - but wondered if anyone had any ideas on what to do or how to approach this.
Understandably my friend is at her whits end.
Thanks in advance.
A friend of mine really needs help.
She has a mortgage in joint name with her ex partner who left in late 2017, November to be precise.
She has since then paid all mortgage payments on the property in full (c£600 per month).
She is due to come out of a fixed rate for the mortgage in August so in April she contacted Barclays via an independent advisor and was told to “call back in June” as it was “too soon”.
In June she contacted them again and was told by Barclays they won’t deal with an independent advisor on a remortgage.
She contacted Barclays in-house advisor who has suggested she “doesn’t meet affordability requirements” to get an equity release and have her ex removed. This is despite her paying this amount for the last 19months.
She has asked for a “rate switch” but they won’t allow this without consent of the ex partner who has refused to tick a box and allow it to be done. It is because he is bitter about the breakup.
There is a challenge on the credit file in that a Barclaycard balance that was paid off in April Has not been updated on her file (the irony that it’s the same company doing this slow response is the one who will refuse her application)
So - if she doesn’t complete the remortgage and remove her ex’s name her payments will go up from c£600 a month to c£900 a month.
I am sure that this is irresponsible lending, refusing based on affordability means it would be even less affordable - but wondered if anyone had any ideas on what to do or how to approach this.
Understandably my friend is at her whits end.
Thanks in advance.
0
Comments
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It is still a joint mortgage which was given based on joint affordability. If the ex won't permit a product change then they will need to consider selling up.0
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Not meeting a lenders current affordability criteria isn't irresponsible lending. The mortgage was affordable at the time in joint names, but it isn't affordable now on just her income alone. As above poster has stated, she would have to consider selling the property if she can no longer afford it the new repayments.
Is she not able to just complete a rate switch online without his consent?
"You can switch online
Switch your rate instantly as long as you’re not making other changes to the mortgage and want to choose your rate without mortgage advice."
https://www.barclays.co.uk/mortgages/existing-customer-centre/mortgage/I am a Mortgage Broker.
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
If they split up 19 months ago, why didn’t she sort this out then?I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com0
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Thanks for the replies.
Selling doesn’t need to happen and she is happy to if it comes to it but would rather work with the bank to fix this.
It is surely irresponsible to allow someone’s rate to increase based on affordability when they can see she has been able to afford to pay £600 per month for 19months as it’s her bank and they can see the proof but to then increase it to £900 on the basis they don’t feel she can afford £600 is absolute lunacy ?0 -
19months ago she kicked him out for being abusive and violent and has spent the last 19 months rebuilding her confidence and self esteem to a level where she can speak to people.0
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So the mortgage rate change was kinda on a back burner0
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No, it's not irresponsible. If she were to apply to any lender now she probably would be declined on affordabilty. The fact she has paid it for the last 19 months.....it doesn't work like that.
The joint ownership is something she really needs to address sooner or later. The fact she continues to pay the mortgage is just creating more equity that the ex may be able to claim on. Sell now and start afresh.0 -
2 things here. The lender wont agree to remove him for the mortgage as they deem her unable to support the mortgage in her name. You may disagree and she may disagree but the only opinion that matters is that of Barclays.
At the moment if a mortgage payment is missed, they have 2 people to go after for the money. In the future its only 1. Why would they take this risk unless they know she can afford it based on their own method of calculating.
The also wont agree to do a product switch without his authority.
I have noticed a few companies start to do this. Halifax used to only need 1 person to go through online to do it but now needs the other person to log in and agree to the changes. I can see why they would do this as you are effectivey signing another person up to a new financial contract without their authority but again, thats their rules.
Has she looked at changing lenders altogether? I had a similar case recently where existing lender wouldn't lend enough to remove ex but another lender would. Maybe worth exploring.
Otherwise, take him to court to force him to sign a new mortgage deal
Otherwise, sell the house
Its not as if she doesnt have options, they just arent the options she wants.0 -
Leonmc0708 wrote: »Selling doesn’t need to happen
It does, unless she is happy to continue paying whatever the standard rate is now that the original mortgage deal has ended. It may only be £300 extra for now, but what happens in the future when the rate rises? Would she be able to pay £1,000? £1,200 etc.?
Does she want to be financially tied to him for the rest of her life? Because at the moment if he decided to run up loads of debt, her credit history would also be affected by this because they still have a joint mortgage together.
Also as previous poster has mentioned, she is building up equity in the property the longer she keeps paying on her own, equity that her ex is entitled to 50% of, even though he has hasn’t paid anything towards the property in all that time.
I know you said the ex was abusive/violent – is she still in contact with him? Does he want to sell?
Your friend should call the Womens Aid helpline to ask them for help with regards to what next steps to take if she is no longer in contact with him and wants to sell. I suspect your friend will probably need to get a court order.
https://www.womensaid.org.uk/information-support/helpline/#1447945875934-beee5111-afd5I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com0 -
Even if he agreed to go to new rate I'd advise she sells up to cut all financial ties with him otherwise how long will this continue?0
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