Mortgage Choice on Separation

Posted on 16 April 2011 by john wassell


My wife and I have decided to seperate after being married for 7 and a half years.  The mortgage we have is solely in my name, but I think she is named on it?  I pay all of the mortgage payments.

I am moving out and she has said she won't be leaving the house and seems to think she can afford the mortgage payments herself, which I doubt as she is a student.  Where do I go forward from here if she can't afford the house?  Do I have to pay for her to live in it with the children or do we have to sell? Could I sell the house if its worth less than the mortgage now as we bought the house at the peak of the property boom?  If can sell for less can I then pay of the outstanding balance monthly to the mortgage company?  I can't afford to get anywhere of my own while I am paying for this big house.

John,

I have forwarded you details to our in house Solicitors and they will be in touch very shortly, if not already, in relation to your legal position.

With regards to your mortgage you must speak to your Lender as soon as possible.  Regardless of whether it is a joint mortgage or not you have made a commitment to the mortgage company to meet the monthly payments and this will stand until the mortgage is transferred to someone else's name or repaid.  By talking to your lender you may be able to arrange to make reduced payments and they will be able to advise you on what options are open to you and your wife.  Personally, I have not heard of a Lender accepting a reduced sum on sale and then agreeing to the balance being paid off monthly.

I also recommend that you speak to an independent body such as Citizens Advice Bureaux.

Peter

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