Negative Equity Mortgage Problem

[Pat9]

My girlfriend and I have recently split and the house is worth less than the mortgage. I can afford the mortgage repayments but know that the lender would not think so, so would not allow me to take out a mortgage in my own name. How can I ensure that my ex has no entitlement to any future profit, and that she has no responsibility for mortgage payments or any arrears.

[Buenchico]

I think that your only option is to discuss the position with the mortgage lenders. Your agreement with them probably places a 'joint and several' liability for payment upon you and your former girlfriend. This means that, if any money is owed, the lenders can choose whether to pursue you both for the debt or simply pursue whichever one of you they think is most likely to be able to pay the full amount. This 'joint and several' lability cannot be removed without the consent of the lender so you have no alternative other than to approach the bank or building society.

Sorry!

Chris

[Pat9]

Thanks for your comments buenchico, someone has mentioned a "declaration of trust" but I do not know how this is looked on legally. I feel that the lender is a last resort as my basic wages are not enough to give me a mortgage but my overtime etc. is. Unfortunately I have not been in my present employment very long, so this is something else the lender would not look on favourably.

[Buenchico]

Quite a few solicitors offer 'first 30 minutes free' deals. Why not make an appointment and take a copy of your mortgage agreement along?

(In the first instance, you might try your local Citizen's Advice Bureau. If nothing else, they might be able to recommend a suitable solicitor).

Chris

[Pat9]

Thanks buenchico you have been very helpful. I will do as you suggested and see what the CAB say.

Thanks

[lady_p_gold]

If you are joint tenants and own the house then it is both of you that own all the house as far as I know. She would be liable for mortgage payments and arrears and entitled to any profit, or a share in it.  You would have to go to a solicitor to get it into your sole name and you would not be able to do that without her consent.  Normally one would think of buying out the other party but in this case as there is negative equity and you can't get a mortgage on your own, then it is a problem.  I suggest you speak to your lender, or perhaps the CAB

[lady_p_gold]

oops sorry I hadn't refreshed the page and I didn't see the previous answers !