Refused remortgage - what to do?

[notbeenagreatday]

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.

Go to an independent mortgage advisor, they will find you a good deal that suits your circumstances

is your ex still on the mortgage? if so that might explain why his score is impacting the potential remortgage, now would be a good time to buy him out properly and get a mortgage in your sole name, is this what the sum you're paying him is for? please dont pay him his money from the house if he is still on the mortgage, especially since you could afford it on your own. do you have a final settlement for your finances?

I have a rental house which is for my son in the future. The mortgage went up hugely. To way more than the rent. I was told I couldn't re mortgage by a well known mortgage company. I found someone off Facebook. Still a registered mortgage advisor but not from a big company. He get me 2 mortgage offers no problem. One was with virgin money so not obscure. Can't remember the other one.
So don't go with a big mortgage advisory company. Ask an independent mortgage advisor and they will try harder and will find you a deal.

@tiredandexhausted1995

is your ex still on the mortgage?

Yes it's still a joint mortgage. To remove him I have to pay him his agreed share of equity as per divorce terms

I can't buy him out as I need the additional borrowing to do that and the bank have said no. I applied to day for a decision on principle to remove him from mortgage and do additional borrowing all in my sole name. They said no. I asked if I could port the mortgage with additional borrowing to a new property all in my sole name - also a no

Yes there is final settlement if you mean the financial consent order? That details the sum I need to pay and by when

@Daisy12Maisie

I would but I'm concerned about early redemption fees since I still have 4 years to run on a 5 year fixed

I assume if I went to a broker then they can negotiate with my current lender?

My current lender is NatWest.

Check your credit score on other platforms, I've found they don't always have all the same information.

A credit check is on the person not the property so unlikely your ex husband is impacting on your ability to borrow.

I'm a high earner but self employed with unpredictable income - I have always used independent whole market mortgage brokers. I doubt they'll have trouble finding you something.

@butterfly0404

Yeah I've checked the main ones and all say I have a perfect score

See that's what I thought but NatWest definitely told me today the credit check looks at the property and who I'm associated with (which is I assume the only way the lady could tell me that's it an issue with my ex! Without divulging information)

As you and your ex are still sharing a mortgage (a joint financial product) you will have linked credit records. If he’s been a dick it will potentially impact your ability to get credit.

If you can get evidence he’s done this, you may be able to go back to court as it’s a pretty valid reason why you’re not able to buy him out, but you’ll need to seek legal advice.

@AnotherDelphinium

Thankyou - I know he has had debt collection letters delivered here post divorce as I genuinely opened one by accident

I told him then he needed to contact them and update his details.

The score doesn't matter.

Have you got other debts, have you missed any payments in the past 3 years?

So my ex was tied to my credit report for 9 years which apparently is standard. I found this out after a loan he applied for appeared on my credit report 6 years later. Don’t panic about your early repayment fee as you may find it all works out in the end.

Are you sure you are completely clean and that the mortgage has always been paid without any late payments?
I'm an Underwriter and find it very strange for them to decline you when it's a buy out situation regardless of how bad your exs credit is.
He's not going on the new mortgage

None whatsoever

All the information reported by Equifax etc states not a single missed payment

I know! This is why I'm in a total spin!

Definitely no late payments in 11 years of paying the mortgage - the Equifax reports etc all confirm as much

NatWest were next to useless just kept saying it was down to "adverse bureau days" whatever that means - and to speak to Equifax as it must be a poor credit score - so I made them wait on the phone whilst I got the report and said well I've been scored 1000/1000 so how can that be? NatWest said to speak to Equifax. Equifax said they don't make recommendations 🤔 even though NatWest said they relied on that in making their decision (to decline) all either of them was said was that they also looked at the "property" and so that meant who I am associated with! But I can't disassociate myself without getting the additional borrowing to buy him out!

Could it be that they won't allow additional borrowing as debt consolidation and divorce payment is seen as debt consolidation??

There must be an error somewhere. My friend has just got additional borrowing to take a mortgage into her sole name, to use the extra money to buy out her ex and clear some credit card debt. She earns less than £50k and has been approved to borrow £180k see an independent mortgage advisor there has to be something wrong

Thankyou @AutumnLeeeeves

I'm just so stressed and upset. I've been all excited planning on selling this house hoping to get a new (better one) for me and the children and severing ties with him completely. And this has completely thrown me.

Put it this way....his reasons for leaving....I'd rather he'd had an affair that's how bad it was (sorry for those who've been cheated on - I've been there - with a different partner and know how truly awful that can be)

I think I'll just wait a few weeks/maybe 3 months and try again

Your score is irrelevant, they’re an absolute con. Equifax may rank you as 1000/1000, but they don’t offer you (or anyone else) credit. What matters is your actual credit report.

If it’s adverse reports on your credit file, and there’s nothing showing on any of the three credit agencies for you, it’s going to be your husbands score that is impacting on yours as you have joint credit. You can apply to have his history discounted, but I’m not sure if that’s available while you still have joint borrowing.

@YouveGotAFastCar

Yes I think you are right.

What if I apply to remove ex husband from the mortgage now? That only costs £185?

@YouveGotAFastCar

And then do the legal "bit" in terms of paying him and removing him from land registry etc when I can (hopefully) do the additional borrowing?

Be careful about removing you ex from the mortgage your existing mortgage company doesn’t have to agree and you may find yourself paying a non refundable admin fee to try to do it, I found myself in crazy situation with existing mortgage company they refused to help me. I had to remortgage away from them as they decided to play hard ball with me even had the gall to tell my ex to value the house to screw more money out of me. The legal bit removing from the land registry and mortgage needs to take place at same time otherwise you might have unexpected consequences like him still having a claim on it.