Buying ex out of the house

[Rockchk31]

Hi, very new to the whole separation sensation. I was wondering if anyone could advise how it works buying out someone in the mortgage. My parents are looking to help with this instead of borrowing more money. My concern is will the bank look at if I can afford the current mortgage on my own....on paper computer will say no but I know that I can. Any advice would be welcome as I would prefer not to leave the home for our daughters stability. Thanks.

will the bank look at if I can afford the current mortgage on my own

Yes - in effect you are applying for a new mortgage to pay off the old.

Ahhh ok, even if I pay him off with money not borrowed from them?

You need to be able both to qualify for the mortgage on your own and to pay your ex whatever share of the equity it’s been agreed he should have (you don’t say whether you were married or not, which can affect the equity share.)

If you are able to qualify for the whole outstanding mortgage on your own then your parents just need to help you with whatever equity your ex is due. If you don’t qualify then they need to help you with both the equity and whatever shortfall remains between the outstanding mortgage and what mortgage you qualify for.

Unfortunately, “on paper” - income and savings - is what mortgage lenders use to assess the sum you can borrow, not whether you think you can afford the repayments.

Ahhh ok, even if I pay him off with money not borrowed from them?

Yes. You can't take his name off the existing mortgage. You have to take out a new mortgage in your name only. That means the lender will look at whether or not you can afford the mortgage. How you pay him off is irrelevant.

**You don’t say whether you were married or not, which can affect the equity share.)

We are married yes

Thanks for your replies, looks like we would have no option but to sell as I can’t borrow anything near what is owed, really disappointing but needs must I suppose.

I wouldn't give up hope yet. Have you absolutely counted all sources of income. And tried different mortgage lenders.

If you can prove that you can afford it on your own, they might agree.
Had the same problem - separated but ex-H still on mortgage. We separated our bank accounts early on so the mortgage has been coming out of just my account for 2 years+. When I rang my mortgage provider they went through my income and said whilst they wouldn't approve on that alone, I have paid it all these years and not got into financial difficulties, so because of that they will approve me.