separated - approaching lender re: Taking over mortgage

I am currently separated from my husband (but not legally separated). We have a mortgage in joint names on the family home. I have been using my income and savings to cover mortgage and all other household bills.
Does anyone know what is involved in approaching lender regarding taking over the mortgage ? Assuming my husband will go with this, what will the lender look for? I am currently not working but have been paying this since March and this has always come out of my own bank account (not a joint one).

The fact that you are not currently working will come against you greatly, I imagine.

Yes, I'm concerned about that as I don't know if they would do a full stress test or if the bank would just look and see if I have been meeting the payments. I have a better chance of meeting the mortgage if I can settle other financial stuff and at least know where I am at and I may also qualify for MIS. Even if my husband got a lump sum of the savings I think he would default on providing money towards mortgage as he's already saying he can't pay me the minimal maintenance that he has agreed to.
Has anyone gone through this? I don't want to ring and rock the boat but I also don't want to go through a whole separation agreement process only to find that the lenders won't let me takeover the mortgage.

They will have to underwrite it as a new application so it is very unlikely you will be approved unfortunately until you are in full time employment.

Would I be able to use social welfare & maintenance & savings as income (rather than income from working)? Also, if I was to obtain MIS, would this be taken into account? Have never missed a payment on the mortgage. If I was to make a settlement, could show that I have a lump sum at my disposal which I could use to pay off lump sum of mortgage or use to pay mortgage each month.

If it was necessary to be in full time employment, would a job offer suffice or would I need to be working for a year or so?

Also, just thought of this.. if mortgage is on a fixed rate and transfer of equity takes place, will this fix rate end on day that the transfer takes place? May a penalty need to be paid? Or will the fixed term just end when it should have originally.

You will need to be full time and no on probation - only employment income is taken into account.

Re the fixed rate, this depends whether the lender allows you to stay on the current fixed rate or insists on a whole new mortgage.

Thanks for the feedback, do you know what way the stress testing is currently working? Is it a point or so on top of current ECB? Then what portion of income should repayment be at? NorfBank, do you know if a lender would look at gross salary, or net income, less outgoings such as life insurance, car insurance and so on?
In the ballpark, if someone was looking for 100 to 125K mortgage, any idea of what region of salary they would need to be earning? I know outgoings will impact this but just to try and get a starting point. Any help at all would be great, thanks. Oh, and would it help if there was a guarantor? I don't know if that would even be an option, but just wondering.

Hi Dubinamerica

I am currently going through a separation and am taking over the mortgage. Go to your lending institution and discuss your situation with them. In order to transfer the mortgage and the deeds of the house into your name, you will have to make an application for that mortgage and the lending institution will then decide if you are in a position to meet the repayments. If your are approved you will also have to produce the Deed of Separation stating that your spouse/partner has transferred his interest to you and also a Deed of Waiver will also have to be signed by both of you. The Deed of Waiver, basically means that your spouse is waiving all his rights to the property and you to any of his.

Re salary required for 100k-125k, the duration of the mortgage would be a factor. I would think you would need to be earning at least 50K per annum but you would be best asking the lender.

Remember a credit check will be done on you and you will have to declare any other outstanding loans/ credit card payments that you may have.

May I make a recommendation to you. Why not go to MABs, the Money Advice Bureau, they are excellent and will help you work out your finances and will clarify any queries you may have. Also, if they think you are a good candidate for a mortgage, you could ask them for a letter stating this and this letter will be accepted by the lending institutions.

One very important thing get yourself a good solicitor.

Shop around for mortgages, you might get a better deal from a different lending institution.

My lending bank has approved my application subject to the above conditions, i.e. Separation Agreement and Deed of Waiver. My situation is slightly different than yours as I am in full time employment and have no maintenance issues.

Sorry for being so long winded but I know what you are going through and I have done all of the above. I truly empathise with you.

I hope things work out for you and remember take care of yourself.

All the best

Windy

Thanks so much for the information on this, I really appreciate it. I am going to try get to the CWO again this week and look for MIS to pay the interest portion (or even some) of the mortgage. I am hoping that this may carry some weight with the building society.

Do you know if a person can actually go through the procedure of applying to see if it's feasible to take over mortgage. You mention that yours was subject to the deed of waiver. I'd like to know if I even have the option of taking over the mortgage at this stage, rather than going through the whole process of making an agreement with my husband only to find out that the lenders won't go with that right now. Did you involve your solicitor in this part regarding filling in the forms and going to the lender or did you follow up with that directly?
thanks so much

If you go and have a chat with your bank they will very quickly give you an indication as to whether or not they will transfer mortgage to your name without you having to do a full application.

However, and I hate to be the bearer of bad news, in my opinion it is highly unlikely any lender will allow you take over the mortgage without an income. Social welfare income is not usually considered an income from a lending point of view, they are unlikely to take OPFA, MIS, JB or JA into account and possibly only a portion of maintenance. Whether or not you feel you can afford to pay the mortgage will be irrelevant and the application would need to meet the lenders criteria for a mortgage at the moment.

Was a lender for many years and even in the good times (?) your situation would be the same, the bank is not going to take off one party to a mortgage where the second party is not in full time sufficient employment to pay the loan even if the other person is not working.

So rather than hoping you will be able to take over the mortgage in your present situation, have a quick word with the bank and get a definite answer.

Sorry