Posted on 14 March 2011 by Rob
I've recently had an amicable split from my long term girlfriend with who we jointly owned a house. I decided to move out and will look to rent in the short term. I've been working as an illustrator for over a year and so self-employed with a Limited Company. What I want to know is, I understand that I won't be able to get a new mortgage for at least another year or two due to the current length of self-employment. If I kept my name on the house with the ex, would this be of benefit for me in said year or two and would I be able to move my half of the mortgage to a place of my own instead of starting from scratch when the time comes? Or would it be of no benefit and best to just cut ties altogether? I'm in a position to pay this mortgage amount per month but would struggle to raise a large deposit when the time comes in a year or so.
Two things and I'll answer your question first. All the time you are named on a mortgage you have a joint and individual responsibility to ensure the mortgage payments are made on time. You existing Lender will only release you from these covenants if your ex girlfriend can afford the mortgage on her own. If you stay on the mortgage and decide to come off in a year or two the Lender is not in anyway obliged to grant you a new mortgage of a similar size or on the same product terms and so from this point of view there would be no advantage and you would also still need to find a deposit. However, presuming you have maintained the mortgage payments it would count towards your credit rating and may mean that Lenders are more inclined to agree an application.
You say that you will have to wait to get a mortgage because you are recently self employed and that is not necessarily the case. If you previously worked as an illustrator or similar on an employed basis then there are Lenders who will look at an application with 1 years accounts or less. Also if you are mainly working on a contract basis but responsible for your own tax and insurance Lenders may accept an application.
I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 and tell the consultant the date and title of your question. They will be able to look at your situation and advise you accordingly.
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