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  • FIRST POST
    • Gjbalsdon77
    • By Gjbalsdon77 8th Mar 18, 11:18 PM
    • 4Posts
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    Gjbalsdon77
    Joint remortgaging advise awkward situation
    • #1
    • 8th Mar 18, 11:18 PM
    Joint remortgaging advise awkward situation 8th Mar 18 at 11:18 PM
    Hi folks. So here is our position.

    We are currently looking at remortaging our home to change lenders to a better rate as a joint mortgage. However, my partner and I will be splitting up soon (amicably). We still both want to be named on mortage but only one of us will be living there. So my question is

    Do we need to tell the lender of our situation or should it make no differnce as not affecting mortgage payments. If we dont tell and they find out what could possible implications be. Or if we do tell them would they refuse application?

    Any advise would be appreciated.
Page 1
    • Edi81
    • By Edi81 9th Mar 18, 6:39 AM
    • 450 Posts
    • 311 Thanks
    Edi81
    • #2
    • 9th Mar 18, 6:39 AM
    • #2
    • 9th Mar 18, 6:39 AM
    If you are splitting up why do you both want to be in the mortgage?
    Is one of you moving out? What if that person wants to buy in the future the existing mortgage may prevent them from doing this.
    You really should consider cutting all financial ties if this is a permanent split.
    • Gjbalsdon77
    • By Gjbalsdon77 9th Mar 18, 7:27 AM
    • 4 Posts
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    Gjbalsdon77
    • #3
    • 9th Mar 18, 7:27 AM
    • #3
    • 9th Mar 18, 7:27 AM
    Yes one of us will be moving but one will be staying because of kids. For the reasons of security of the person staying we want to keep.mortgage as joint and will have an agreemnt in place about the sale of house. This is an amicable split so its almost as we are having a joint mortgage as "friend". I just want to know if its best to tell lender or not.
    • csgohan4
    • By csgohan4 9th Mar 18, 7:57 AM
    • 4,430 Posts
    • 2,782 Thanks
    csgohan4
    • #4
    • 9th Mar 18, 7:57 AM
    • #4
    • 9th Mar 18, 7:57 AM
    money and friend's shouldn't mix, one of you will have more to lose and little to gain. Friends now but enemies later and you are both liable for the mortgage meaning your credit files will be ruined if one decides to default on the mortgage.


    The bank does not need to know your own personal relationship, but think carefully about your financial and personal implications of doing this. It is far better to cut ties and sell the house and split accordingly.
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • Edi81
    • By Edi81 9th Mar 18, 8:33 AM
    • 450 Posts
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    Edi81
    • #5
    • 9th Mar 18, 8:33 AM
    • #5
    • 9th Mar 18, 8:33 AM
    If there are children involved I would hope that you are doing this through solicitors and not between yourselves.
    • ashe
    • By ashe 9th Mar 18, 9:14 AM
    • 530 Posts
    • 367 Thanks
    ashe
    • #6
    • 9th Mar 18, 9:14 AM
    • #6
    • 9th Mar 18, 9:14 AM
    When the person moving out wants to buy another house they are going to get whacked with a huge stamp duty fee for owning another property, as well as it affecting borrowing.
    • Gjbalsdon77
    • By Gjbalsdon77 9th Mar 18, 12:58 PM
    • 4 Posts
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    Gjbalsdon77
    • #7
    • 9th Mar 18, 12:58 PM
    • #7
    • 9th Mar 18, 12:58 PM
    Thanks for the replies. We will have agreements in place between us about the sales of the house etc. I am more interested to know if we HAVE to tell new lenders of our situation and if we dont will there be any issues as long as mortgage is being paid. Is it illegal not to be telling them as our conern is if we do tell them the new deal wont be approved.
    • robatwork
    • By robatwork 9th Mar 18, 3:36 PM
    • 4,299 Posts
    • 4,713 Thanks
    robatwork
    • #8
    • 9th Mar 18, 3:36 PM
    • #8
    • 9th Mar 18, 3:36 PM
    B
    a
    d

    i
    d
    e
    a
    • Gjbalsdon77
    • By Gjbalsdon77 9th Mar 18, 5:42 PM
    • 4 Posts
    • 0 Thanks
    Gjbalsdon77
    • #9
    • 9th Mar 18, 5:42 PM
    • #9
    • 9th Mar 18, 5:42 PM
    Whats a bad idea?? The situation or bit about saying / not saying anything?
    • Thrugelmir
    • By Thrugelmir 9th Mar 18, 5:57 PM
    • 58,490 Posts
    • 51,854 Thanks
    Thrugelmir
    Providing there is a proper legal agreement drawn up and both parties receive the benefit of independent advice. Then there's no reason why it this idea cannot be followed through. Not similar to arrangements made by married couples where children are involved.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • robatwork
    • By robatwork 10th Mar 18, 2:49 PM
    • 4,299 Posts
    • 4,713 Thanks
    robatwork
    Bad idea is maintaining a financial relationship. It will come back to bite you
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