Buying Husband out of home

S

star32

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We are going through a seperation and probably a divorce within next 2 years. I am in family home with kids. I am in a position to buy him out and finance the mortgage myself. We have a very nice tracker mortgage which I am afraid of losing. Do I have the option of getting a solicitor draw up document saying he no longer wants rights to the house. Will the banks take him off mortgage eventually once I prove I can pay it say over a two year period. On paper with my wages they won't agree but I rent out two rooms long term to students - would they take this income into consideration. Do I have any other options.

I can easily afford the mortgage repayments and would love to keep tracker without entering into a new contract with bank.
 
To be honest, I haven't a clue and you seem to be a proactive person who has earned the right to get on with the rest of your life financially and otherwise. I know when we got our first mortgage, the bank made it clear that if we rented out even one room the interest rate would increase. The interest rate back then was savagely bad for the house-owner and the newer rate was worse.

I don't often suggest a visit to a solicitor, but yours is a case where a good solicitor might have solutions.
 
Lenders policies vary on this. Some allow it, so your only hope is to ask your particular lender given your particular circumstances, will they allow you to take over the mortgage and retain the tracker. I have seen cases where it's been no problem. I have seen cases where they just refused to take the second borrower off the mortgage. And I have seen cases where they agreed to take him off the mortgage as long as she reduces the negative equity by €50k.

If your bank refuses, your husband can sign a paper surrendering all rights to the property. Unfortunately, he remains on the mortgage and this will hinder him from getting another mortgage.

So
1) Ask you bank. If they agree, off you go.
2) If they refuse, talk to your husband about the side-agreement.
3) If he agrees, get your solicitor to draft it up.

Brendan
 
I did it a few years ago Star. Ex was removed from the mortgage but I retained my tracker. There was not an issue. However, I did qualify with my salary to take out a mortgage in my own name. It's not being able to afford the repayments they look at, rather if you qualify for to mortgage in your own right - think it was 3.5 times your salary. Also Plenty of equity I. The house - banks didn't mention that however but I'm sur it was a factor. I then paid him 50% of the equity as ruled by the judge.

I would get agreement in theory with the bank first, as there is no point agreeing to buy him out if banks will not allow. I had this in court on the dash and the proof that I could pay him the equity.

In court, I asked judge if I could buy him out (ex had agreed) so judge ruled on this and gave me a certain length of time to proceed. If I Couldn't buy him out, I could Continue to pay all of mortgage and then house would be sold and divided 50:50 when youngest finished full time education. Solicitor transferred house, deeds etc to my name, V best of luck but have all your eggs lined up before court!
 
It is great for borrowers that some banks are facilitating this.

However, for shareholders/taxpayers, it is an utterly ridiculous policy.

Banks should insist on the removal of the tracker rate in cases such as this.
 
My lender is Danske bank so not high street bank - I have a feeling they will be more difficult to deal with. My husband was open at first to the idea now I feel he will fight me on it. He lives with his girlfriend in her own home - I'm hoping he doesn't was to buy in future because of this situation. I'd say he looks on our house as an investment for the future but because of this he feels he can come and go as he pleases. I will definitely go down this route though and hope he comes around to the idea. Do you think highlighting the situation to Danske will cause further problems though especially with the tracker?
 
Mousehelp - I can afford the mortgage but not on paper as such with the 3.5 rule. I will have student income also. If the banks don't agree though I was going to not say anything and keep paying mortgage just hopefully get a side agreement on the side with my husband. There is 60,000 equity on the house I can afford to pay him 30,000 straight away and not remortage. It seems all so complicated though and if it all falls through I would expect him then to pay half the mortgage as 1. his kids live there and 2. as an investment for 50/50 split in the future when youngest 18 or finished education. I would like to have him to have no access to house when he feels like it - this is my biggest issue he comes and goes as he pleases I have no privacy or chance to move forward.
 
You need to talk about maintenance with your soon to be ex-husband first before anything else in my view. A deal could be done regarding that and the house repayments.
I'd be reluctant to say anything to Danske until you have everything else sorted out.
You really need to talk to a family law specialist.
 
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