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Hi everyone,
I'm after a little bit of help with regards my house.
The original mortgage was with future mortgages, has been in place for 7 years, was a 100% mortgage for £149,000, currently owe £153,450 due to fees etc. Was taken out on an interest only basis for 25 years. The equity in the house is split between me and my ex partner 60% - 40%
I split with the ex around 3 years ago. It was an amicable split and she moved back to her parents and is now renting somewhere. When we split the house was in negative equity, we were also in quite a bit of debt with arrears on the mortgage, arrears on council tax, electric bills and gas bills and also other credit cards and loans.
We agreed that I would keep the house and cover all the payments to remove the debt and that she would not pay anything. We agreed that when possible we would look to take her name off the mortgage and transfer it to my name.
Since then I have met a new partner, we have together managed to clear all of the arrears and debts. I entered a debt management plan 2 1/2 years ago to try and get straight and so far it's all working. Until it came to transfer the equity.
The mortgage company tole me that I needed to clear all arrears and maintain payments for a further 3 months. I cleared the arrears in May last year. In November last year my ex found out that my new partner and I were expecting a child and all of a sudden getting her name off the mortgage became a top priority. We attempted to carry out a transfer of equity and the mortgage company declined it saying that we had to switch to a repayment mortgage and we then couldn't afford the repayments.
The ex then said that she was going to look at forcing the sale of the house. After talking with her she agreed to allow us to look at the mortage again and request a transfer of equity as the mortgage company agreed that we didn't need to switch to a repayment mortgage, but that due to new rules we must put in place a repayment plan. When i asked what they would class as suitable plan they couldn't tell me.
As you can probably guess they have declined the most recent transfer of equity request. They have given 2 reasons. The fact that I am on a debt management plan, and affordability. They have said that company policy is not to carry out a transfer of equity when a party is on a debt management plan as it shows they are having financial difficulties. They then said that we couldn't afford the mortgage, despite the fact that we are currently paying the mortgage each month and putting away £400 each month into a savings plan. And having over £300 surplus each month after all food and other bills. This is the case while my partner is on maternity leave. They are aware that she is on maternity leave and that she will be returning to work and have details of her actual salary but they have said they are not able to factor this into account.
I'm after 2 bits of advice really. Is there anything I can do with regards the mortgage company and the transfer of equity. I'm not sure how they can say we can't afford it when we have been paying it for the last 3 years. And are they allowed to insist that we put a repayment plan in place. It was always intended that we would sell the property in the next 5-10 years.
Finally is my partner able to force the sale of the house with us having a 3 month old baby and her only having a 40% equity in the house.
I'm not trying to keep her tied in to anything, the best solution for us all is that the mortgage company transfer the names. I've got a terrible credit rating still and am probably about 12-18 months away from being able to source a new mortgage.
Sorry for such a long post and thanks in advance for any help.
James
I'm after a little bit of help with regards my house.
The original mortgage was with future mortgages, has been in place for 7 years, was a 100% mortgage for £149,000, currently owe £153,450 due to fees etc. Was taken out on an interest only basis for 25 years. The equity in the house is split between me and my ex partner 60% - 40%
I split with the ex around 3 years ago. It was an amicable split and she moved back to her parents and is now renting somewhere. When we split the house was in negative equity, we were also in quite a bit of debt with arrears on the mortgage, arrears on council tax, electric bills and gas bills and also other credit cards and loans.
We agreed that I would keep the house and cover all the payments to remove the debt and that she would not pay anything. We agreed that when possible we would look to take her name off the mortgage and transfer it to my name.
Since then I have met a new partner, we have together managed to clear all of the arrears and debts. I entered a debt management plan 2 1/2 years ago to try and get straight and so far it's all working. Until it came to transfer the equity.
The mortgage company tole me that I needed to clear all arrears and maintain payments for a further 3 months. I cleared the arrears in May last year. In November last year my ex found out that my new partner and I were expecting a child and all of a sudden getting her name off the mortgage became a top priority. We attempted to carry out a transfer of equity and the mortgage company declined it saying that we had to switch to a repayment mortgage and we then couldn't afford the repayments.
The ex then said that she was going to look at forcing the sale of the house. After talking with her she agreed to allow us to look at the mortage again and request a transfer of equity as the mortgage company agreed that we didn't need to switch to a repayment mortgage, but that due to new rules we must put in place a repayment plan. When i asked what they would class as suitable plan they couldn't tell me.
As you can probably guess they have declined the most recent transfer of equity request. They have given 2 reasons. The fact that I am on a debt management plan, and affordability. They have said that company policy is not to carry out a transfer of equity when a party is on a debt management plan as it shows they are having financial difficulties. They then said that we couldn't afford the mortgage, despite the fact that we are currently paying the mortgage each month and putting away £400 each month into a savings plan. And having over £300 surplus each month after all food and other bills. This is the case while my partner is on maternity leave. They are aware that she is on maternity leave and that she will be returning to work and have details of her actual salary but they have said they are not able to factor this into account.
I'm after 2 bits of advice really. Is there anything I can do with regards the mortgage company and the transfer of equity. I'm not sure how they can say we can't afford it when we have been paying it for the last 3 years. And are they allowed to insist that we put a repayment plan in place. It was always intended that we would sell the property in the next 5-10 years.
Finally is my partner able to force the sale of the house with us having a 3 month old baby and her only having a 40% equity in the house.
I'm not trying to keep her tied in to anything, the best solution for us all is that the mortgage company transfer the names. I've got a terrible credit rating still and am probably about 12-18 months away from being able to source a new mortgage.
Sorry for such a long post and thanks in advance for any help.
James
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