Potentially complicated mortgage question

[Justabitconfusedreally]

Morning,

I'm not sure if this board or the property board would be the best to post on so hedged my bets on this one first.

I'm posting on behalf of my partner as they do not have an account, however I have had some very good advice from here in the past so there was nothing to lose by posing the issue on here!

I will try and sum up the situation the best I can but the longer it goes on it seems to grow arms and legs, so it is quite long.

My partner and his ex bought a house together (for context their two kids live there as well), they split up some years back (no I had nothing to do with it). There was no immediate talk of him coming off the mortgage even when we got together (he wasn't contributing to it he was on it in name only). I own my own place which he later moved into as he was renting.

When the mortgage came up for renewal, it transpired that his ex partner was in arrears of over 1k. She recieved money to clear this from a family member.

Durng the remortgage process the bank said he wouldn't be able to come off the mortgage. Other than being told he couldn't come off the mortgage all we know is her payments reduced by about £200 per month. So, we thought not ideal but we'll suck it up for the fixed term she has and he could then try to get off after that.

He has now started receiving letters (bank didn't have a current address for him before so he didn't recieve anything about previous arrears, he wasn't previously interested as he though it was all being paid etc) saying the monthly payments are not being made. She has not paid the mortgage for 5 months.

It has also come to light that her new partner moved into the house full time at least 4 months ago which she didn't say anything about and we only found out as one of the kids mentioned it.

So my questions are, is there anything he can do about her not paying the mortgage while he is still tied to it and can't come off? Other than continuing regular contact with the bank.

Also regarding the new partner moving in, should he have been consulted before this happened as he is named on the mortgage and does this now affect him being able to come off the mortgahe as it is now over 3k in debt despite the lower monthly payments and in theory more money coming into the household as I would have thought the new partner would be contributing in some way.

Unfortunatly we do not have information on her financial situation, (she did previously confirm with my partner that she could afford this new monthly payment) or much information about this new partner as communication between my partner and his ex is just regarding contact for the kids, as this is already set up and follows a set pattern they really don't talk that much. She has not been forthcoming other than to say she hasn't spoken to the bank.

Thank you for reading if you got through that!

Then forcing sale is the only option. You can talk in circles about it for months, but that won't fix the mess. Serious conversations need to be had about where the children are going to be housed, if she can't afford adequate housing for her and the children can you take them in?

What was their eventual plan in terms of the house? e.g. was he expecting to get some equity from it in future, or was he just essentially staying on the mortgage so the kids would keep their home but not ever expecting to get back any of the equity built up during their relationship?

3..Offer to take on the mortgage in his own sole name, buying the house as a Buy to Let property until the children are 18; and from which she pays him rent - if he is able to afford this option and if his credit rating is sufficiently robust.
He will then have control over the mortgage and payments.

I would be very wary of this - should she ever need to claim benefits to cover the rent, this may well be considered a 'contrived tenancy'. Similarly I suspect he would find it very hard to find a lender willing to lend on this arrangement.

So, he moved out and stopped paying the mortgage?

And she’s not paying it either.

There really is only one solution that will stop the mess that is about to happen and that is to sell.

Unless of course they want the bank to repossess - in which case they should both carry on not paying. Your partners credit file will be trashed and she and the kids will be evicted by bailiffs.

It would be a massive loss for your partner. However, she may come out of it a little better as her homeless status would get her on the list for housing.

I suspect she has a plan (aided by her new partner) for this to happen. She must really hate your partner.

I really think your partner has to get the house valued. She may even change her tune and start paying once she realises he is serious.

Yes definitely time to get her to agree to sell failing which he applies to court for an order to sell.

@Persipan he wanted nothing from the house just to be able to be removed from the mortgage when possible. Initially he wasn't too concerned when this happened because as far as he was aware the payments (which she agreed to pay) were being paid. If she had chosen to sell up before now he didn't want anything from the proceeds etc.

@fridaynight1 he moved out, but couldn't afford both the mortgage and rent. It was agreed she would pay the mortgage herself, which she was to begin with. She got in debit but a family member helped clear those. She is now in greater debt even though the payments she has now are lower and her partner is now living with her. So, on paper she has more money coming into the household. We don't know much about the new partner - the kids like him and that was the only concern when he came on the scene.

When your partner signed for the new mortgage was there an extended term? Is it in a fixed term? Just unusual to have lower interest rates, when generally they have been higher so did your partner extend the mortgage term?

How is the relationship between your partner and ex? If its not amicable he may need to consider mediation

he would be best to agree to pay the mortgage directly as part of the maintenance agreed. It needs to be agreed and recorded in writing/witnessed.

He should then agree a plan for the future sale (ie when youngest child is 18 or now and anything in between). This would include any equity split.

@Livinghappy, it's possible, there was no direct communication between partner and ex. The broker asked for information from him he gave it she got a new fixed term deal. The relationship is civil most of the time but they have little contact now other to dicuss the kids, the contact agreed is regular and set days etc so they don't really have to talk that much.

@CarAccident he is calling the bank tomorrow and also arranging legal advice, he has messaged her again as a last ditch attempt at seeing if she has contacted them herself.

Her new partner has no obligation to contribute. Your partner however does. In the eyes of the law he is jointly and severally liable for the mortgage. If she isn't paying it he has to or the mortgage provider can repossess the property. Any agreement between the parties is irrelevant to the lender. If he wants to discuss the situation with her then he needs to go over and do so. But she can say he is just as liable as she is. If he doesn't want his credit rating affected he needs to have this conversation now.

I know it's unfair but that is the reality of your situation. Is he paying her maintenance? Perhaps he could withhold that and pay towards the mortgage instead.

@Jesusmaryjosephandtheweedon if someone lives with you it is not unreasonable for them to contribute to the household, that might not be the mortgage but will be in other ways. I doubt most people would let someone move in with them and not expect some kind of contribution? So any money he contributes frees up her own money to go towards the mortgage. However she hadn't paid anything for months so it doesn't matter anyway.

As I mentioned before any attempts at communication are not being acknowledged in any purposeful way, he did try and talk to her in person and she dodged the conversation happening.

Yes of course he's paying maintenance. I don't see how taking money from his children would help though if she's not made any payments anyway.

Thank you for the helpful responses.

He has asked again if she has called the bank. He is calling himself tomorrow anyway and he will be seeking legal advice.

I wonder if she thinks maintenance isn't enough so is just refusing to pay the mortgage because she knows legally he will have to? Whilst he might not want to force the sale of his children's home, threatening to do so may well be what it takes to get her to properly engage with him.

@Zippedydoodahday I suppose its possible but he's always paid what was agreed on time and has paid extras towards extra circular activities etc so I'm not sure why she would have a problem broaching a higher figure in maintenence, obviously I could be wrong though.

Yes, a lot of posters are saying forcing a sale is the way to, well resolve is the wrong word but for lack of another....

I'm just being factual and not trying to rile anyone up. Of course it is reasonable to expect her partner to pay towards the property he is living in and maybe he is. She however is refusing to pay the mortgage and she is the problem, unfortunately due to the fact its a joint mortgage your DP is also liable.

I'm not saying that taking money from his children is the way to go but if you know that she has the money and just isn't paying for the mortgage then that might be the only option.

He needs off the mortgage, whether that is by the new partner going on it or selling it. I understand he doesn’t want his children losing their home but as things stand that may happen anyway, plus him being financially ruined in the process. No point being a martyr.
He needs to have a straight talk with her. They are financially tied. He’s still liable for the house and the payments. Is there any equity in the house that will cover it if it has to be repossessed etc? If she can’t pay it with a partner living there too is there something wrong or is she just choosing not to. The point is you won’t know any of this without a straight frank conversation.

It would be better to speak to the broker first and understand what the last loan agreement made consisted of so he isn't on the back foot when speaking to the bank the bank will be protecting their own interests.