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Can stbx stay on the mortgage and it not effect his ability to get another mortgage?

(104 Posts)
Rainbow03 Tue 11-Jun-19 22:35:17

If my stbx can’t be removed from the mortgage after a divorce as I don’t earn enough to take it on solely, is there anyway to stop it from effecting his lending ability on a new flat? I can afford it on my own but the bank doesn’t view it that way.

I don’t want him to be effected and I would take 100% liability for it!

Rainbow03 Wed 12-Jun-19 09:40:05

The bungalow has 2 small bedrooms and a room we couldn’t even fit a cot in, it’s small.

titchy Wed 12-Jun-19 09:42:45

There's no money in trust...

His idea won't work as others have said so you'll have to sell the house. If he quits his job, you'll have to sell the house - and may well keep more of the equity.

Either way you'll be selling the house. Lawyering up means you get a bette deal and maybe some of his pension.

Rainbow03 Wed 12-Jun-19 09:52:47

His pension he relatively new, he asked me to set it up, it’s probably worth about £13,000 now.

ceirrno Wed 12-Jun-19 10:48:38

@emotionalaffair He'll also need to pay extra stamp duty and possibly have to get a mortgage with a lower loan to value as it will count as a second home.

That won't be an issue, there's an exemption for that in scenarios like this

Rainbow03 Wed 12-Jun-19 18:31:57

The other option I was given by the lawyer was a Mesher order where we can determine the triggers. For example he told me he doesn’t want me meeting a man and letting him live in the house.

I thought that you would only need to sell a house if it was much bigger than your needs?

TheBrockmans Wed 12-Jun-19 18:43:53

he told me he doesn’t want me meeting a man and letting him live in the house.

But he could get on with his life and get a girlfriend? He could be constantly questioning you and ds about your love life real or imagined. Doesn't sound ideal.

Rainbow03 Wed 12-Jun-19 18:51:39

I don’t think he would like a man in any house I owned at the moment, hopefully this will disappear eventually.

Tbh the family home doesn’t remind me of him at all. I did all the decorating myself and with my dad. Me and my mum did a lot in the garden. He had absolutely no interest in anything.

Rainbow03 Wed 12-Jun-19 18:54:22

All the memories I have of my dad from the last few years are in that house, all the decorating and the laughing and joking. Then he got cancer and died last year. I had lived away for 15 years prior so don’t have so many memories then.

stucknoue Wed 12-Jun-19 18:59:22

We are going to be in the same situation, I spoke to a mortgage broker who said he can get a mortgage but he is a high earner and we have a low mortgage with tons of equity. If needed though I will borrow from my parents

Rainbow03 Wed 12-Jun-19 19:29:05

Our mortgage is just under £60,000 with about £140,000 equity and my stbx earns 5x my salary.

TheBrockmans Wed 12-Jun-19 22:07:19

I don’t think he would like a man in any house I owned at the moment, hopefully this will disappear eventually.

He probably won't but at least if it isn't a condition of you staying in the house he won't have any say over it. If it is a condition then it gives him a licence to scrutinise your lifestyle whilst living his own as he sees fit.

Mycatatetherat Wed 12-Jun-19 22:52:22

If your mortgage is just under £60000 can't you get a job that will enable you to afford to take it over? That's a low mortgage.

Rainbow03 Thu 13-Jun-19 07:06:28

I was just thinking what happens with the family dog? My stbx doesn’t like her so she is with me. Do I get doggy maintenance. Finding a flat that’s takes a dog is hard, would I have to give her away😕

Rainbow03 Thu 13-Jun-19 07:33:03

@Mycatatetherat I work 3 days at the moment and have Ds 5 days and he starts pre school in September. Then I will have 2 more days to work overtime which would hopefully boost my mortgage if I applied then. Maybe we could have an agreement that I will get him removed by then, either with my overtime or borrowing from my mum. Hopefully he can get another mortgage in the meantime with our payments included, they are about £270 a month.

Rainbow03 Thu 13-Jun-19 07:34:09

I just remembered when I went for my mortgage in principle in my name I don’t think I included CM as he refused to pay it but has changed his mind now!

Mintypea5 Thu 13-Jun-19 07:36:58

@Rainbow03 some lenders won't count child maintenance towards income as it can change so just double check.

Rainbow03 Thu 13-Jun-19 08:00:14

I’m pretty sure mine does but I’ll check!

LemonTT Thu 13-Jun-19 11:04:23

One of the issues both of you need to take on board is that the more you debate and faff around on entirely resolvable things the more this is going to cost you both. That £25k could easily go on legal fees meaning you will need an even bigger mortgage.

It is pointless negotiating CMS. It is not within your gift to do this. It is an entitlement for your child and any agreement can be overturned. Just work it out now based on CMS so you know your income and he knows his liability.

Really there isn’t that much to negotiate here. A half decent solicitor should give you an indication of what your % share will be. The same for him.

There will be some back and forward and perhaps you will need a Mesher Order and maybe he will agree as long as it lets him buy.

My advice, be realistic rather than sentimental. The later will cost you both money. Also Ignore his bluster as it is meaningless. Work out how you can afford this or another home and put in place a realistic plan to achieve it. Because a Mesher order is a deferment of a problem not an avoidance. At some point you will need to give him a share of the equity.

Bluntness100 Thu 13-Jun-19 11:13:38

Basically work out three times his salary. As a general rule. This is his maximum mortgage on his own.

So for example he earned 50 k a year. This means max mortgage is 150k. Split between two properties. One mortgage is currently 60 k. As such he can borrow a max of ninety k for the second property.

It's not exact science but as a rule of thumb it will give you an idea of what he can afford to buy.

However there is a huge amount of complexity in owning two properties due to capital gains tax. As the bungalow is not his primary home, then a future sale of it would attract capital gains tax. Which is reduced for every year he lived there or rented it out.

Both of you really need advice on this, as it has long ranging implications, inc for your son, due to thr tax impacts on any future equity,

Rainbow03 Thu 13-Jun-19 11:33:31

I have just been to the solicitor who has told me to snap the idea of putting his equity into a trust for our son out of his hand. I’m going to go with the solicitor who has said it should be pretty easy and inexpensive as long as stbx doesn’t change his mind.

TheBrockmans Thu 13-Jun-19 11:59:02

I would also say that if that money is in a trust fund for ds then at least if ex does go on to have more dc, or even just remarry then at least ds has some money passed to him from stbex rather than to a new family or new wife.

NorthernSpirit Thu 13-Jun-19 12:17:38

This is going to be problematic for him (staying on the mortgage). His earnings to lending ration will be circa 4 x and the current mortgage will be taken into account (so he’ll only be able to lend the difference).

As he already (I’m the eyes of HMRC) owns a property he’ll have to pay 3% additional stamp duty on the new purchase.

When the FMH is sold if he has bought a new property then he’ll have to pay capital gains tax.

Mecher orders are a bad idea all round. It postpones the inevitable for you and makes it difficult for men to get back on the property ladder.

Rainbow03 Thu 13-Jun-19 12:29:50

Yes for the trust to work I have to remove him from the mortgage. The solicitor told me to get the correct legal figure of CM from the website and use that to get the mortgage principal. I think with that figure I will be ok, if not my mum has agreed to pay the shortfall.

With the trust is my sons name there is a clause that I can live there until I die.

Rainbow03 Thu 13-Jun-19 12:31:34

We can offset some of the equity for all the savings and his pension so he has enough for a pretty good deposit. He then has his good salary so will make it up quick.

ceirrno Thu 13-Jun-19 21:47:26

Again

@NorthernSpirit (As he already (I’m the eyes of HMRC) owns a property he’ll have to pay 3% additional stamp duty on the new purchase.)

This is not true. There is an exemption in the case of a divorce and being on the mortgage of your ex.

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