Mortgage query/divorce

[JLbaby]

I have a query about applying for a mortgage when you have a joint mortgage with someone.

I am going through a divorce and ex h is buying me out of the house, so he is applying for a mortgage on the house in his sole name (it could take up to 8 weeks for this to happen and for me to be removed from the mortgage/deeds). I have seen a property I like and want to put an offer in but I’m not sure whether I can apply for a mortgage when I am on a mortgage already?

They will take the existing mortgage into account when determining affordability, so it entirely depends on the figures involved whether that will reduce your DIP to something unusable, or whether it will go through. What kind of LTVs are we talking?

Even if I'm in the process of being removed from the mortgage (and I have proof)? What's a DIP? Sorry I'm a mortgage novice!

LTV is about 35%

Decision in principle.

If you can find someone who will do it as a manually underwritten case, you might be lucky, but the tendency now is to process all mortgages extremely cautiously. They have no guarantee that the first house sale will go ahead and they don't want a customer who is liable for more mortgage can they afford.

Either find a way to string it out for 8 weeks or find a "whole of market" independent broker and see what they can do with it.

Sorry, the marital home isn't being sold, ex h is buying me out and applying for a mortgage in his sole name.

I'll try and find a broker and see what they say, thank you.

Good luck. Your LTV probably gives you a shot.

I would wait if I were you. Your LTV is very low which is good but your decision in principle and any mortgage offer will take your existing mortgage into account. You would then need to get all this redone once the 'sale' goes through. I have been in your exDH's position and it was still considered a purchase even though I was essentially 'buying' the property off myself and my ex. In your case I think it would be viewed as a sale as well.

Can you wait? In my current house my DHs house was for sale while we were buying our new one, long story short I ended up buying our house on my own as a result. His house sold a month before we moved into ours. In our situation we couldn't wait but if we had our purchase and subsequent remortgages would be easier.

Wait if you can.

Sorry, I also meant to say that my buying my ex out of our flat took about 5 weeks so it may end up being quicker than you think.

I bought in a similar situation.

My XH was remortgaging into his sole name. I wasn't due to get any money from that as we'd agreed a legal charge where I got my money some years later.

I had a cash deposit and affordability to buy on my own wasn't a problem - calculated without my other mortgage.

I used a broker and my building society (Coventry) were happy to approve the application subject to me coming off the old mortgage (Barclays). They just wouldn't release the funds to my conveyancing solicitor until Barclays had sent a specially worded letter that I was no longer on the old mortgage. It did get a bit hairy because that letter didn't get faxed until day of completion.

What helped was that there was never any question of XH or me getting approved alone because we were going nowhere near the limits of affordability checks.

That's really helpful, thank you Ellisandra! I can imagine it's a fairly common situation given the divorce rate these days.

I'm speaking to L&C brokers and they seem very helpful so far and he said he would make a few enquiries as to whether I can make an application while still on my current mortgage (but in the process of being removed). Glad it all worked out for you in the end.