Posted on 23 June 2011 by Louise Smith
Cut a long story short - I have a joint mortgage with a ex partner, he walked out June 2009 leaving me with a lot of debt (joint loans) which he hasn't paid for. I have struggled with the advice of CCCS who have now set me up on a dept management plan with all creditors. I have missed 1 mortgage payment, when my ex left and have been keeping up with regular payments and paying extra every month to clear the missed payment. I have been referred to dept agencies for my joint loans as I have not been paying the full amount but always paid them.
My ex, he moved away and has not contributed to the mortgage or the joint loans. In 2009 I tried to sell the house but it's in negative equity, my mortgage is £103,500 and the house is now valued at £95,000. I went back and forth to the solicitors and did not get anywhere. I applied for a mortgage on my own in 2009, but at the time was not earning enough. I have asked him to sign the deeds over to me, after all he's not paying anything towards the mortgage or the joint loans, but he refuses until his name is off the mortgage. I have now got 2 jobs to try and make my financial situation better, I sold my car and finance is looking better, so have made a appointment with Nationwide to apply again for mortgage on my sole name. Problem I have is - Where it states on the application to inform them with any loans, credit cards, amount and if its joint or sole - do I put what the amount I was paying for before and name of banks or do I put the name of the dept agencies and how much I'm paying now??
Will I have any chance in having mortgage on my sole name because I am dealing with CCCS and bad credit rating?
Is having a guarantor another option?
If they refuse again, do I try elsewhere, is there any point? But if I opt out now with Nationwide there's a £3,500 penalty charge.
With regards to the Nationwide application form you should give the name of the banks and how much you should be paying them. You will find a subsequent question that asks if you have ever been bankrupt or insolvent or made any arrangements with creditors? You should answer yes to this and give them full details of the arrangements you have made in the additional information section of the form or on an additional separate sheet. Nationwide will carry out a credit search against you and all the arrangements will be disclosed, it is far better you tell them up front because if you don't you will definitely be declined.
Whether you have a chance or not will depend on how Nationwide view the efforts you have been making to bring the mortgage up to date and whether they were made aware that your partner had left? If they know that you have been making payments on your own and that your ex has not been paying anything they are more likely to look favourably on your application than if this is the first time they have been made aware of the situation. You should always talk to your lender if you have any difficulties with meeting the mortgage payments.
I honestly think that your best chance is with Nationwide. No mortgage lender will lend you more than the property is worth to clear the Nationwide mortgage and with a £3,500 penalty charge I think you best course of action would be to take legal advice about removing your ex partner's name from the title. I have referred your details to our in house solicitor's Rollingsons and you should hear from them by e mail very shortly.
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.