My partner is still on a mortgage with his ex-wife. She won't buy him out and the bank won't give us a mortgage because of this

Posted on 10 December 2013 by Lisa


Hi my partner and I are looking to buy our own home together however we have recently been to the bank to be told that as he is still on his existing mortgage with his ex wife its not possible for us to have a mortgage. She is refusing to buy him out and refusing to Sell the property that she resides in with there 9 year old daughter. She wants him off the mortgage but isn't prepared to buy him out to do so. And she's happy to wait until the child is 18 and then sell the property. My partner will not walk away with nothing Do we have any options at all ? Thank you. Lisa.

Lisa,

It may well be that there are options open to you. Firstly there's a difference in the way that some lenders calculate borrowing when an applicant is to remain on a marital home. Some lenders calculate the total borrowing you can get on your incomes and then subtract the amount of the other mortgage, and the remainder is what they will lend you. Other lenders will take the marital mortgage payment as just a monthly committment, which may give a better result for you. There are also those lenders who manually underwrite their mortgages, and can therefore judge each application on its individual merits.

Also your partner could agree to come off the mortgage now, but retain an interest in the property, which wouldn't have to be paid until his daughter turns 18. Thisis something that could be set up by the solicitors as part of the 'Transfer of Equity' process to remove him from the deeds and mortgage. This would free him of the committment now, and protect his share of the equity in the property by deferring it, which would hopefully overcome the impasse.

Without knowing the exact figures involved it's difficult to be more specfic, and I would therefore suggest it's worth talking in more detail. If you'd like to do so, then please please let me know and I'll arrange a convenient time.

Regards, 

Simon

simon.collins@johncharcol.co.uk

More than mortgages, talk to me about:
Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance
General Insurance | Valuations | Conveyancing | Wills | Home finders

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.