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Taking My Name off a Mortgage

by Paddy Adamason 24 January 2013 |

6 comments | Love

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Hi I wonder if I could get some advice about taking my name off a mortgage so that I can get another?

My ex wife is saying that she can't remortgage for the value of the house as she doesn't have enough income even though I pay her a decent amount each month.

I have a new partner and we are currently renting a property. I'd like to get a new mortgage so that I can move on.

I am not interested in any equity out of the old house and happy to sign over to her and I don't want her to sell as it is my kids home but I am worried that despite decent monthly income we won't get the mortgage that we want as my name is pn another mortgage?

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darshanubhi posted
We had the same situation at my divorce in 1993. My wife worked out the biggest mortgage she could have in her name, say 100,000 - the mortgage was say 150,000 - so we paid 50,000 cash and she got the 100,000 mortgage in her name and house transferred in her sole name, leaving no involvement for me. The other option was to sell the house, split the equity and either she downsized or rented something cheaper, both hard on children.
Posted on 25 January 2013 | Love 0 loves Report
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TBoneBod posted
I'm also in the same situation - right now. My ex-wife has the house we once both had, she has now rented the property and changed it to a rental property with the mortgage company. This isn't based on income, but on rental return. You do, of course, have to have enough equity in the property for this to work. She has now rented a smaller property, at less expense than the original house, but she is still able to keep it, rather than sell it at a deflated price. There's no guarantee it will increase considerably in the next few years; but this way, it's not costing her anything.
Posted on 25 January 2013 | Love 0 loves Report
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rbgos posted
I'm going through just the same thing right now.

The bank will not take your name off the mortgage, unless your wife can prove that she can pay for it all on her own. My ex and I are currently jumping through all sorts of hoops to meet the bank's criteria for that (both being freelance contractors makes it much more complicated!). The fact that she's paid the mortgage on her own for the last two years, on her income, isn't good enough, they still need her to meet their normal lending criteria.

If you are paying her regular money for child support / alimony / whatever, the bank should take this extra money she's getting into account when assessing her income.

In addition (at least in our case) the bank is insisting that my name comes off the deeds, so the ownership of the house is all hers too. That's an extra cost, with lawyers to process the deed transfer etc.
Posted on 25 January 2013 | Love 1 love Report
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MikeGG1 posted
The problem is usually that the lenders have changed their criteria since the crash and are using a much lower salary multiple, which, combined with the loss of one income, makes it very difficult.

It depends on how much the shortfall is. If it is small, there is the possibility that there could be a guarantor to enable it to go ahead.

Mike
Posted on 26 January 2013 | Love 0 loves Report
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Paddy Adamason posted
Thanks for all the responses. Doesn't seem as if it's going to be easy whichever way I look at it?
Posted on 28 January 2013 | Love 0 loves Report
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MikeGG1 posted
Have a look at the situation in total. What mortgage could you, No.1 and No.2 get between you? Does your ex have a new partner? He could be considered as well.

What would be left over from covering the old mortgage and would that be enough for a new place? Perhaps you could get somewhere under a shared ownership deal?

There are possibilities out there. Consult a mortgage broker. See the link below.

Mike
Posted on 28 January 2013 | Love 0 loves Report

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