Refused remortgage - what to do

[notbeenagreatday]

I've posted in legal too but thought might be some more advice over here

So under the terms of my divorce I'm due to pay ex husband a sum of money next year. I am in the family home as have young children and always earnt 3x ex so can cover the mortgage easily.

Was mulling over moving house so rang to discuss with my current mortgage provider today - who after doing a soft check flat out refused to offer additional borrowing on my current mortgage to pay him so I can't move and I can't do additional borrowing!

I'm shocked. They said they based it on my Experian Report - but I've duly registered and my credit score is 1000/1000 - literally cannot improve on it.

What am I supposed to do? They said it could be due to ex husbands credit rating (they are so wishy washy with what they are allowed to say) but I have no control over whatever debt he might have had if he used this house before he moved out as the registered address other than asking him to change the address details? I can't ask him to run his own credit report - we don't have that kind of relationship?

My salary is circa £85k per year and my current mortgage is £170k and I need £60k so well under borrowing multipliers

I re fixed at the end of the last fixed deal so that has 4 years to run without incurring early redemption so can't change lenders.

@Unexpectedlysinglemum

That should read one bathroom not one bedroom 🙈

But doing a cursory bit of research suggests I cannot remove him from the mortgage without also removing him from the deeds - which requires a transfer of equity - which surely requires me to pay him his £60k

So back to square one

I literally said this to you, several pages ago.

i design and manage mortgages for a living, you need a transfer of equity

@Ohforgodssake123

Yes sorry 🙈

Any who I'm waiting for a broker to get back to me with a An Agreement in Principle and another call tomorrow.

Looks like I'll just have to take the early redemption charge on the chin but small price to pay to sever ties finally with my ex

OP I had a similar ish situation when I was buying my ex out - during the separation he decided to stop paying the mortgage for 2 months and he didn't tell me. Thankfully I found out and chucked the payments onto a credit card. Hence when I came to look to remortage to release the equity, I found it very difficult to secure one. Might this of been the case with you as well? My mortgage broker advised me of this as I couldn't see this note on my credit file through experian etc.

Have you made a formal complaint? It might not make a difference but typically complaint handlers are more skilled.
Quote ‘Consumer Duty regulation’ and stay that you don’t feel the company has worked to provide a ‘good outcome’ that is tailored to your needs.

Hi sorry to jump in on this... but hoping you can explain if a transfer of equity was also happening as I am hoping this will be the case in my situation... (ex is receiving a huge inheritance worth over 250k so hoping he agrees to xfer his small portion of equity to me to retain the house soley in my name and he get a new house with his money)

Is there a seperate charge for a "transfer of equity" and another form to fill in or is it all done in 1 go amd the £185 covers all?

I’m sorry lovely, I don’t know. I just know the process in place for the bank I work for and that they are pretty standard.

id reach out to a solicitor

@QueenBakingBee

No definitely not as the mortgage has always been paid out of an account I look at almost daily so definitely no missed payments

My ex has always been useless with money - some might call me financially controlling but I managed all our finances as I couldn't trust him

@Evecob

Yes - there is £185 to remove him from the mortgage (with the current bank) and then a conveyancing solicitor to do the transfer of equity and get the land register deeds undated. I've just had a quote of about £700 for that

As an update spoke to a couple of brokers - L&C have been really helpful and hoping to get an Agreement in Principle on next couple of days - this is on the basis of doing extra borrowing on current property, will remortgage to a new mortgage provider pay the early redemption charge and so the transfer of equity