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Joint mortgage and Separation

Posted on 24 August 2011 by Elizabeth


My husband and I are seperating. We have a joint mortgage on our current home which we will be putting on the Market. Any money made from the sale of the house will be going to my husband as this was really his house. I am looking to buy my own house and apply for a sole mortgage. Will I be able to do this? We still have a joint account. We are in the process of having my name taken off this account. Do I hve to wait until we sell our current home before I can apply for my own mortgage? Will they lend to me as I will be associated with my husband on credit scores due to the joint account, mortgage etc?

Elizabeth

Whilst you can apply for a mortgage in your own name you will find that it is a condition of the mortgage offer your existing mortgage is either repaid or transferred to your husband's sole name before completion can take place.  As part of the application process the lender will carry out a credit check and this will show any sole or joint credit agreements that you have.  If your husband has a poor credit record this could well affect your overall score and it is possible you may fail the credit check.  I recommend that you apply to one of the 3 major credit reference agencies: Experian, Equifax or Callcredit for a copy of your report.  

If you do find that your husband's credit record is counting against you, there are still lenders who will take a sensible view and take into account that you are now separating.  These lenders will assess you on your own circumstances and often lend where the more automated high street lenders will not.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to advise you on your situation.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.


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