Joint mortgage and separating from partner

dsim86 · 22 June 2018 at 10:53PM

Hey guys,

Like the title suggests, my girlfriend and I have a joint mortgage, we split up and she's moved back to her parents. We paid equal amounts into the deposit, only 6 months ago. I've contacted the mortgage company to see if I can pay her her side of the deposit and put the mortgage in my name, but this isn't possible as my salary isn't high enough, they won't consider income from a lodger (understandably) as it isn't guaranteed, and they won't accept my parents as a guarantor as they are too close to retirement. Selling the house isn't an option either as there's a £9000 fee for cancelling in the fixed term period! So....my next idea.....and I'm a tad sceptical about this...is to visit a solicitor, pay her side of the deposit (which she is happy with) and get a written agreement to say the ex-girlfriend will have no further financial involvement or gain from the house when it is sold. Could I get peoples opinion on this please, would be a great help. It won't affect her stamp duty on her next property as she is on her parents deeds and will need to pay the higher rate anyway.

Cheers, don't know how I get into such situations!

Bass_9 · 23 June 2018 at 6:07AM

First and foremost, would your girlfriend be happy with that solution? Presumably she would still be liable for the mortgage even if she signed the solicitors documents. Then what happens if you lose your job? Or if you start messing about and refuse to sell to pay off the mortgage in the future? (not saying you would but it happens) I certainly wouldn't sign that if I could still be liable for the mortgage. She would be taking on a lot of risk and not getting any benefit from it.

9,000 seems quite steep. Who is your mortgage provider, how much is left to pay and how long is the fixed period?

Personally I think it's best to cut ties as cleanly and quickly as possible in these situations, so I would seriously be looking at selling even if I had to pay the early repayment charge. Surely if you can afford half her deposit you can afford half of the ERC. Unfortunately it sounds like you cannot afford to stay in the house as an individual.

Re. Your situation, it's life, and this happens to many unfortunately!

tacpot12 · 23 June 2018 at 7:50AM

If the solicitor's agreement includes some safeguards for your ex, she might sign. It is about the only way to avoid you both losing out significantly from splitting up.

The only other alternative is that your ex continues to pay her share of the mortgage until the end of the fixed term deal and you sell the house. I can't see anyway that you can stay in the house over the long term unless you start earning enough to take on the entire mortgage AND buy out your ex's equity in the property (which might be a little more than the deposit she has paid).

Is there anything you can do to reduce your outgoings that the mortgage company are taking into account when assessing your income, so that you can take the mortgage on now?

dsim86 · 23 June 2018 at 8:35AM

Hi, thanks very much for the above responses. It's just an option that we discussed but seems the only way not to sell the house. I understand what you're saying Bass_9, the benefit for her would be receiving her half of the deposit without losing anything short term i.e. not paying mortgage fees (£4500), solicitors, estate agents etc. The mortgage is with Platform (Co-op) and fixed for 5 years (4.5 years left). If we sold we would both lose approximately £8000 in the space of 6 months.

Tacpot12 - I have suggested this, even getting in a lodger (aware this isn't guaranteed consistent income) to pay her half of the mortgage, wait 4.5 years, sell the house and split 50 50, she'd be making money without having to do anything but won't agree to it unfortunately. And my outgoings are already near their minimum.

Thanks again

HouseBuyer77 · 23 June 2018 at 9:45AM

She's unlikely to be able to get another mortgage whilst she's still on the one for this property (regardless of whether or not you're paying for it). So if she wants to buy again within 5 years she'll need to get off the mortgage.

Generally the early repayment fees are on a sliding scale, they get lower as time goes by. Maybe sell in a year or two's time rather than hold on til the end of the fixed term?

tlc678910 · 23 June 2018 at 9:46AM

Hi, If you do agree this with your partner I think it is important to include a timescale when you will either get her name off the mortgage or sell e.g, in 4 and a half years when there is no early repayment charge. This is because your ex may not be able to get a mortgage themselves due to failing the affordability because they are still jointly liable for your mortgage.
Tlc

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Joint mortgage and separating from partner

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