Can I get a mortgage while jointly owned matrimonial home

[silva27]

I wanted to ask for some advice regarding my ability to obtain a mortgage while I remain named on the mortgage and title of my former matrimonial home.
My divorce financial settlement has now been determined by a sealed Consent Order. Although the former matrimonial home is currently still jointly owned and subject to a joint mortgage, the financial settlement between my ex-husband and me is structured as follows:

• My ex-husband is required to pay me a fixed lump sum of £90,000 in full and final satisfaction of my capital claims.
• £30,000 is due by 31 October 2026, with the remaining £60,000 payable by monthly instalments of £600.
• The outstanding amount is to be secured by a legal charge over the former matrimonial home in my favour.
• If the property is sold following default, the existing mortgage is redeemed first, the outstanding balance owed to me is paid second, and the remaining proceeds are paid to my ex-husband.
• A sale, remortgage, transfer of ownership or change in legal or beneficial interest triggers repayment of the outstanding balance owed to me.
• The Order provides for a clean break in respect of our remaining capital and income claims.

The current mortgage balance is approximately £320,000 and the property is worth approximately £500,000 in its present position, potentially more once outstanding building-regulation documentation relating to the extension is resolved. My ex-husband has always serviced the mortgage, both during the marriage and since our separation. My ex pays the mortgage and I don’t contribute although I fully appreciate that I remain legally liable to while I remain a named borrower. I can provide evidence of the mortgage payment history if required. Therefore, although I remain named on the property and mortgage at present, my financial entitlement from the property has effectively been fixed by the Court Order rather than me ultimately receiving a percentage share of the remaining equity. What I would like to establish is whether there are any mortgage lenders who may be willing to consider these circumstances and the sealed Consent Order when assessing me for a mortgage in my sole name. In particular, could someone please advise whether any lenders may consider this through manual underwriting, taking into account the fact that my former husband has historically serviced the existing mortgage, rather than automatically treating the existing joint mortgage in the same way as an ordinary second property/mortgage commitment? I am looking to purchase a modest home for myself and my two children and would ideally like to remain close to their existing schools. Before assuming that purchasing is impossible until I am formally removed from the mortgage, I would like to establish whether there are any lenders whose criteria could accommodate these circumstances.

You'd be better asking a mortgage broker. I'm really hoping you've posted a hypothetical final order here and this isn't the actual situation. Surely you'd look into the impact on your being able to house yourself and children before settlement, as evidence as why you not being paid your share for OVER 8 MORE YEARS is a really bad deal. If this has happened I'm so sorry.

I'm by no means an expert however what would happen if your Ex defaulted on paying the mortgage and the lender took the house back and sold it below the market value just to get their investment back. Where would that leave you with the outstanding payments ?

I personally would not be happy waiting for over 8 years for the full amount. You would get a much better mortgage with the £90k up front for the deposit, rather than just £30k. If ex has to sell the house to afford the £90k, that's what should be done. Too much can happen over 8 years - house value could go up - would you receive an adjusted payment if the value doubled in that 8 yr period ?

Anyway as I understand it, if you are already named on one mortgage it's not easy to get a second. Had this very situation when we were selling our last house - one of the couple had an existing mortgage with a former partner and consequently couldn't get another mortgage to buy our place.

Go to a broker before you sign any financial settlement

Not sure I would have agreed to this and having to wait so long for the remaining money via instalments.

Why would you agree to this bonkers agreement!

Yes you can BUT the amount of your 2nd mortgage will be what’s left of the balance of your mortgage capacity after taking off your existing mortgage
also there’s stamp duty implications

so basically you’d be extremely limited

In answer to your first point, if there’s currently 180k equity, the bank would need to sell for more than 90k below the expected 500k market value for OP to lose out. It would be her ex who loses out.

If you seriously paid a solicitor/lawyer for this agreement and accepted all I can say is wow big mistake. So your going to be connected to your ex for many more years to come, your assuming he will pay the money monthly because I very much doubt that will last long then you have to go back and forth to court etc. Your leaving your name on a property you won't live in so regardless of paperwork your still and always will be liable for the mortgage payment also so should he default you will end up with bad credit. I've never seen anything like it, get courts to allow selling of property, paying off mortgage, splitting what is left then end of the matter.

Unfortunately it’s a very bad deal but it’s done now. It’s over 5 years with final payment of 24k paid at the end of year 5. My issue is if I can find a broker that could overlook my ex’s mortgage based on the consent order and legal charge…

Must be possible, men often have to stay on the mortgage until.kids reach 18 after all, and they buy other property.

Yes it’s possible but you will need a broker for sure. The bigger issue is having to deal with the second home charge. A good broker with experience should be able to handle this

My lump dump is protected by the legal charge and even if bank takes the house there is enough equity even for him to get some money out of it. But yeah it’s 5 years not 8 as he have a log stop to pay me in full by the 2031. And he is late with 2 payment I can take him back to court and force the house sold. Unfortunately it missed the clause to remove me from the mortgage and now he is refusing because it’s not written. He is high earner and can absolutely obtain mortgage in his own name 😑

You’ve been shafted my love!
Are you a high earner?

Only if 40k is considered high 😂 I’m well aware though. I’m fine with whatever better not dwell on the past but my ex has no reason to keep me on the mortgage yet he refuses to release me because consent order does not state he has to… solicitor said only way out is if either he pays the total amount in full or agrees in writing to release me. I just don’t get some people why it has to get to this point. Relationship broke down just let it go and move on with your life 😑

Please tell me this is not the final order. You need it to say that he has to excuse you from the mortgage and if not the house must be sold.

He can ruin your credit rating, you are still financially liable for the mortgage, and you have lower affordability for anything else…I hope you have not agreed to this.

You need to take this back to court. You’ve been shafted and I cannot believe your solicitor allowed it

If this was supposed to be in your order and it was missed that’s negligence on behalf of solicitor

if it wasn’t in the order I can’t believe either you or solicitor were ok to agree it

You are absolutely right, the only positive I got is that if he misses 2 payment it will trigger immediate payout and house being put on the market. I’m being very hopeful he won’t ruin my credit score because he’s a high earner means he will ruin his own credit 🤷‍♀️

I have 2 friends who have been in those position- if you have the affordability you can get a mortgage but it will be higher interest and effectively a buy up let product (even though you’re not letting it)

It’s not huge unusual so I agree you just need to speak to a broker

Why is the order not that the ownership is transferred to him and you then have a legal charge added to the property?

I doubt it. Because you are still liable for the payment of the mortgage on the jointly owned house. But consult a mortgage broker. Maybe there's a way round it.