Removing EX from Mortgage

D

dodo

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I have a Tracker mortgage 0.85 Above ECB Interest Rate with Pepper Finance for a house that is rented out, i have had bad dealings with them in the past about the Mortgage which is upto date with payments now and they tried to get me to sell house for price of mortgage, i know this mortgage makes no financial sense to them as it a good tracker rate.
I earn enough to qualify for the remaining mortgage and have 700E a month left each month after mortgage paid,which covers the taxes,maintenance etc.
Can they block my request to remove ex from mortgage? Divorce hopefully sorted next year. Tks
 
Yes. They are under no obligation to agree to remove your ex from your mortgage.

In fact, the courts sometimes make a settlement "dodo to get the house and the bank to put the mortgage in his name" but the mortgage bit is of no legal effect.

How much is left on the mortgage?
Is it interest only?
How many years left?
How much is the property worth?

Pepper will refuse to take her name off.
Your ex may insist you to sell it as part of the agreement.

So it might be worth having a chat with Pepper now. Don't mention the divorce. Ask if there are any deals going for paying it off early.

Brendan
 
Thanks for the advice Brendan
 


How much is left on the mortgage?250K
Is it interest only? Capital &Interest
How many years left? 19 yrs
How much is the property worth? 300K

When you mentioned about asking Pepper about paying off the mortgage early by selling the house. What is best way to approach that and do I mention that as it 0.85 Tracker above ECB it would be beneficial to you?
Also would this have negative impact on credit rating?
 
can they actually refuse a transfer of equity if both parties agree to this, having received legal advice and the person remaining on the mortgage has shown ability to repay? Do they have to at least consider this transfer of equity?
What is your solicitor saying about this??
 
Actually have not gone to solicitor yet as looking at options first of either selling or removing Ex from Mortgage. Just checking Askaboutmoney first as can get good advice on here . Plan is mid Jan to start the process.
 
dodo said:
What is best way to approach that and do I mention that as it 0.85 Tracker above ECB it would be beneficial to you?
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Just tell them that you are looking at your overall finances and would be prepared to sell the property for a €50k reduction on the mortgage.

Your chances of them agreeing are very low.

Pepper is happy enough with a tracker at 0.85%.

But try it anyway.

Assuming the property is in both names, Mrs Dodo will have to agree as well.

Brendan
 
The investment property will form a part of your joint assets to be distributed as part of the divorce settlement.

Given that you have been in arrears before, your ex will probably not agree to holding onto the house as she will be on the mortgage for the next 19 years and any messing by you would result in her credit record being wrecked.

But if she is getting the family home, then it would be reasonable for you to insist that you keep this property and that she stays on the mortgage.

Brendan
 
It's a tricky situation. The investment property is a super investment at 0.85% tracker rate and should be kept at all costs. If the OP and Ex are in agreement then that helps but there's the issue of the bank. Having the Ex's name on the mortgage is theoretically beneficial to them as it's (potentially) another point of recourse in the event of default. It's detrimental to Ex as it impairs her borrowing ability, shows up on her CCR and there's the possibility of future issues around arrears and default. I don't think her remaining on the mortgage is an ideal solution and a clean break is preferable. Banks are fairly used to this and generally take a pragmatic view.

Talk to your solicitor and get a firm agreement as to what you want to do and then approach Pepper.
 
Spoke to the bank and they said as there is no arrears or financial restraints they would not give discount if I wanted to do a full & final settlement,
 
Brendan Burgess said:
Yes of course they can.

Dodo and Mrs. Dodo have a mortgage with Pepper.

They are under no obligation, nor should they be, to issue Dodo a mortgage on his own.

Brendan
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But are they obliged to consider it? That is my query . Do they have to show that they put it under consideration?
Obviously people can't just request another person to be removed from a mortgage and expect it to happen even if they are not in a good position to repay.. however if both parties agree (having received legal advice) and person has shown ability to repay, does the lender have to at least consider it as an option? Surely they must have a process to at least look at the transfer of equity request?

The OP needs to seek legal advice on this . From the posts it is unclear if their ex/estranged spouse is in agreement to a possible transfer of equity, if OP has the funds available to avail of this and whether the property has been considered as part of separation/divorce proceedings.
 
It’s a mortgage at 0.85% administered by Pepper with two borrowers.

Great if the borrowers plan to carry on as is.

But if you want to change anything, it’s an issue.

And removing a borrower is analagous to getting a new mortgage; all bets are off and you’re entitled to nothing unfortunately, which makes sense really.
 
dubdub123 said:
Surely they must have a process to at least look at the transfer of equity request?
Click to expand...

Why? They probably have an obligation under the Consumer Code to reply to requests. That is all. And their reply will be no thanks.

Dodo can ask if he wants and maybe they will consider it. But they are under no obligation.
 
Did ask and no they will not give discount,at least we know where we stand.
 
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