125% Lending - Change of Parties

Posted on 3 March 2011 by michelle


I have a joint mortgage with my ex partner and father of my 2 children, I moved out and am now renting with current partner. My ex wanted to keep the house and we were going to get my name removed from mortgage. However he has now changed his mind, our mortgage is £100,000 and the house would probably for £112,000, but we also had an unsecured loan attached to mortgage at the same rate for £25,000. Mortgage company says we can not split the two, so not sure whether it would be best to sell and split remaining debt or me and my current partner take over mortgage but would there be any way to take off my ex's half of the unsecured loan?

Michelle,

Have you asked your lender if you can transfer the whole debt, mortgage and unsecured loan to you and your new partner? I do not know if your mortgage Lender will allow a change of borrowers on the unsecured loan and my gut instinct is that this is unlikely. It may be that you have to consider repaying the £25,000 unsecured loan completely and you and your ex taking a new loan from another provider for half each? If the Lender will allow a transfer of parties on the whole package then it does not seem unreasonable to ask your ex partner for half of the unsecured debt to take on his liability.

I recommend that you speak to your Lender to see what they will and will not agree to before talking to your ex and agreeing a way forward.

Peter

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