How do I get myself off the ex-marital mortgage?

Posted on 4 December 2012 by A.archer


I have been separated from my wife for 2 years, we have one 8yr old child together. I have been paying half the joint mortgage for two years (I have not lived in the property for 2 years) since I left. I have a new partner and have a 6 month old child together. I have advised my wife I can no longer afford to pay the full half and have offered her £40 towards it. We are going through a divorce, we have our decree nisi, my wife can't afford to obtain the decree absolute at the moment.

I have 2 questions - can she take me to court to make me pay the full amount and how do I get myself off the mortgage? We have a fixed term until November 2013.

Many Thanks.

Firstly, it is important to maintain the mortgage, as any missed payments will damage both yours and your wife's credit profile, and restrict your ability to obtain further credit. As a joint borrower on the mortgage, you are still "jointly and severally responsible" for the mortgage payment. That is to say, both you and your wife are equally liable for the mortgage payment. I would recommend that you speak to the lender, to see whether there's anything that can be done to lower the payment, by either extending the term or changing to interest only.  You would need to speak to your solicitor regarding the legal side, and whether your wife has any legal redress on the payment.

Secondly unless your current lender agrees to the transfer of equity to your wife's sole name, then selling the marital home and your wife downsizing would be the only alternative.

However, it may be possible to move the mortgage into your wife's sole name, depending on the situation regarding regarding the financial settlement in the divorce, and your wife's income, if she's working.

I would suggest that it's worth talking to one of our consultants to see what the options are regarding a Transfer of Equity. If you'd like to do so, then please let me know.

Regards,

Simon

simon.collins@johncharcol.co.uk

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