How do I keep my fantastic term tracker?

Posted on 25 November 2012 by Sarah


How do I keep my fantastic term tracker?

My husband and I separated 2 years ago and now he wants a divorce. (no children). He left the house, which when he left taking into account my deposits there was no equity in the house. I have paid the (interest only) mortgage myself and have also paid off some of the capital. He said that he would stay on the mortgage and act as guarantor - give me the house (with no equity in it) as long as I didnt make any claims on his pensions or ask for anything off him (10 yrs living together, 5 yrs married).

We both had houses when we met which we both rent out after buying a joint property. He has now decided that he wants his name off the joint mortgage in order to buy another property. We have a fantastic deal on the joint mortgage and I can easily afford it- including paying off capital, however on paper it is a big mortage and I would not fit the lenders criteria.it is a lifetime flexible tracker which I do not to wish to move away from. If he were to contact the mortgage company and say that we are separated could they move me onto a different - more expensive - deal?

Is there any way that I could keep him as guarantor yet get my name only on the title deeds for the land registry? Would he be able to get another mortgage with his name on the joint mortgage and also having another mortgage on the property that he rents out? Thank you!

Sarah,

To answer your first question, your lender can't move you onto a more expensive deal just beacuse you and your husband have separated. As a joint borrower, both you and your husband are "jointly and severally responsible for the mortgage", which means that you are both equally liable for the payment, while you both remain on the mortgage.

Your husband can certainly still get a mortgage if he stays on the marital mortgage, however it may well be that the amount he can borrow may not be sufficient for his purposes. In certain cases the court can rule that although your husband can't be removed from the mortgage as the lender won't allow it, he won't have any claim on equity in the marital home.

One avenue to explore maybe to see whether there's scope to raise capital on your Buy To let property, to then reduce the balance of the main mortgage down to a level where your lender would allow your huband to come off the mortgage.

If you'd like to talk through your options in more detail, please let me know and I'll arrange a suitbale time for you to speak to one of our consultants.

Regards,

Alistair

contact@johncharcol.co.uk

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