Follow this topicFollow this topic Q&A » Mortgages

Taking My Name off a Mortgage

Paddy Adamason
by Paddy Adamason 24 January 2013  |  Comments 6 comments  |  Love Love  0 loves

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?

Report

Enjoyed this? Show it some love

Twitter
General

Comments (6)

  • darshanubhi
    Love rating 0
    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 Love  0 loves Report
  • TBoneBod
    Love rating 12
    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 Love  0 loves Report
  • rbgos
    Love rating 84
    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 Love  1 love Report
  • MikeGG1
    Love rating 909
    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 Love  0 loves Report
  • Paddy Adamason
    Love rating 0
    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 Love  0 loves Report
  • MikeGG1
    Love rating 909
    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 Love  0 loves Report

Post an answer

Sign in or register to post an answer.

Something you're dying to ask... or answer?

Register with lovemoney.com to start asking and answering questions on Q&A.

Get started now

Sign in for a better Q&A

Registered already? Great! You can just sign in to ask and answer questions.

Sign in
W3C  Thank you for using Lock, Stock and Two Smoking Barrels