Transferring house deeds after divorce - do mortgage company need to know?

[AmyElliotDunne]

There is no way I'd be allowed a mortgage for this amount on my income, but it is still a lot cheaper than renting a similar sized house and I want to keep my equity in the house and prevent uprooting the dcs so really don't want to rock the boat with mortgage co. and risk having to sell.

Stbxh doesn't mind staying on the mortgage (I pay it, it's just in joint names) as he rents and has no plan to buy. He is keeping his pension and paying no spousal maintenance in return for me getting the house.

Is it possible to take him off the title deeds but keep him on the mortgage without freaking out the lender?

I know this makes him technically 50% responsible, but he trusts that I won't expect him to pay it in any but the most extreme circumstance (e.g. me being seriously ill and unable to earn) to keep a roof over the dcs' heads.

Yes, the mortgage company need to know. He is liable for the mortgage - they won't just release him from that liability unless you can show you can cover it all yourself.

That's a bummer Head I know he's still liable, but can't he just be on the mortgage without being on the deeds? If he's happy with that why would the mortgage company not be?

The Mortgage company need to know Otherwise you are in breach of your mortgage conditions which could lead to the loan being called in

You can be on a mortgage without being on the title deeds. Depending on the terms of your mortgage, though, you may need the lenders consent before you transfer the property into your sole name. You need to look at your title register and see if there is a restriction in the Proprietorship Register requiring their consent. If so obviously they will need to know. If not, I'm not certain what your position is. It could certainly be registered to you but whether you need to inform them I'm not sure.

Just going through this myself, spoke to mortgage company who said I could but they would need the request for deed only transfer in writing from solicitor

Thanks guys, sounds like I need to bite the bullet and ask the question. When I phoned them before the guy I spoke to said I'd definitely need a new mortgage, but maybe he didn't know what he was talking about and I need to speak to someone else?!

The mortgage company can agree to the transfer of property but insist the mortgage remains in joint names. Nothing unusual.

That's what I had hoped Collaborate, but the guy I spoke to on the phone must have been confused between title and mortgage and shouldn't really be working for a mortgage provider !

I'll call them and perhaps try out a hypothetical "I'm thinking about doing this, what would happen?" and hope I get someone more knowledgable this time.

Do watch out as the rules on loans totally changed last year and many many lenders are now applying tougher tests even on remortgages and they might require you and your ex to have a new mortgage when your ex is taken off the title deeds.

Also when we looked into being personal guarantors for an adult child on a loan the broker said these days the lenders do not like those on their own - they much prefer the parent going on the deeds even if the parent only has a 1% share of the property so you might find they are similarly wanting to keep the husband on the deeds even if his share is changed to 1%.

Ooh ok ,thanks Jilly, that's good to know. That's what concerns me most, that they will want us to take out a new mortgage which will end up costing me more. I'm ok to keep his name on the deeds if it helps, then get a separate thing drawn up to say that he signs over his share at a particular point (when kids are all grown up and I want to move anyway) or something.

Got a meeting with the mortgage co. tomorrow morning, so will put me out of my misery one way or the other!

Dp had declarations of trust drawn up to say that exW's share of "his" property is his and his share of "her" property is hers (he has kept marital property and is buying her a new property - joint mortgages on both and both jointly owned).

Thanks Chasing, that might be what I need to ask the solicitor for then. Hope it won't be too expensive!

Went to see the mortgage co. this morning and they are fine with just transferring the deed and said it shouldn't affect the mortgage at all, which is a huge relief, I jsut need to speak to a solicitor and get it sorted with them.

When the mortgage comes up for renewal later in the year he said it will also help if XH's name is still on it, as then his income can be taken into account to calculate a new rate for me, even if he's not actually contributing, as long as I can show that I'm capable of paying it. Could end up quite a lot cheaper - yay!