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Removing name from a joint mortgage

  • unhappy_richard
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02 Sep 12 #353402 by unhappy_richard
Topic started by unhappy_richard
We have been married for 10 years, have a 10 year old son, and a joint mortgage (for about 5 years). I have always been responsible for paying both the mortgage and the bills etc.

My wife has now started working two days a week, and wants me out ASAP. We are trying to arrange the details so that we can use one of the online divorce and settlement services.

There is a fair amount of equity in the property, and I have proposed that she can "have" the property, so long as I only pay child support, and get my son 3 days per week. She recently said that she can''t afford to pay everything right away, so I agreed to pay the mortgage for one more year.

I''ve got a number of questions about this whole idea, so I''ll just list them:

1) Is what I''m proposing a good idea?

2) Do I need to get my name taken off the mortgage? I want to be able to move on, and buy something for myself in a couple of years.

3) If I get my name taken off the mortgage, will she be forced to take a different higher rate of interest? We have base rate+0.99%, and there''s no way we would get that same rate now.

  • stepper
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02 Sep 12 #353404 by stepper
Reply from stepper
The building society refused to remove my son''s name from the mortgage, despite the fact that his wife earns more than he does.

It was a joint mortgage so presumably the building society preferred to keep both parties responsible in case of default. I think the person who keeps the house has to indemnify the other party.

I would imagine if your name was still on a mortgage you would be unable to obtain a further mortgage. No doubt the legally qualified will give you all the facts.

  • Elphie
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02 Sep 12 #353406 by Elphie
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If she isn''t earning enough to cover the mortgage in her own right (ie, the mortgage is greater than approx. 3.5 x her annual salary) then the bank won''t allow you to remove yourself form the mortgage. If this went to courts, the title deeds could be transferred to her sole name while she was obliged to make "best endeavours" to get your name removed from the mortgage however this isn''t much use to you if her earning capacity means she will never be able to take on the mortgage. As stepper says, you are unlikely to be able to get a mortgage yourself while your name is on this one.
Would she be able to cover the mortgage if she were to work full time?
Also, what is going to happen in a year''s time which is going to enable h to take on the mortgage on her own? There is no point in signing the house over to her if she can''t afford it without sm.

  • Shoegirl
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02 Sep 12 #353407 by Shoegirl
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I had a much more straightforward experience of transferring equity with my building society.

They agreed to remove my husband from the mortgage covenant. My mortgage product continued actually so no change in my very good interest rate. Don''t assume you will be forced into changing your mortgage product because of the transfer of equity situation.

I was stunned actually how helpful the building society were. Dont think i can name them here, but they have branches across the Nation (erm really bad attempt not to mention the name :laugh:) So even though technically it is a remortgage the existing arrangements all continued. It was a remortgage even though I didn''t need the cash to buy Stbx out but rather because they needed to do an affordability check.

Dont apply too early, most offers expire in either 6 to 12 months. But they will tell you where you stand prior to any formal application. It took about an hour to apply and cost £150 for the application. I got the conveyancing done by a small local high street solicitor for about £300.

It all depends on the lender to what will happen unfortunately. I do know from experience that some lenders will remove one of the
parties from the mortgage without a problem. My Stbx didn''t care if they released him from the mortgage or not., I explained that actually being released from the mortgage might be quite important to him one day. Never mind water under the bridge now.

  • unhappy_richard
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03 Sep 12 #353614 by unhappy_richard
Reply from unhappy_richard
Thank you for all the replies.

Unfortunately, my wife is now talking about going to a solicitor, and having me pay until my son is out of education (mesher order). Everything I''ve read about that sounds like a bad idea, and not really a Clean Break.

  • stepper
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03 Sep 12 #353615 by stepper
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Are you able to pay for a mortgage? You may need to rent somewhere yourself. You are entitled to put a roof over your head surely.

  • QPRanger
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03 Sep 12 #353619 by QPRanger
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Richard I think with a 10 yr old son you will not get a Clean Break and the law bends over backwards to help people like your wife unfortunately. Whether the mortgage company agrees to you being removed depends on whether your wife meets their underwriting criteria on her own which from what you''ve said seems very unlikely...

Get some legal advice (start with a free half hour consultation) as to how best to protect your interests mate...

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