mortgage advice needed

[alanon]

my wife and I had a joint 105% mortgage (�85000), we got this just before the Credit Crunch in late 2006. the flat was �80,000 and we spent �5000 on decor etc. 2 months ago she walked out on me, the flat and our marriage claiming she never loved me and needed to "find herself", I am in the process of applying to take the mortgage on alone and am earning �10,000 per annum more than when we first got the mortgage ( I was on 15K then), problem is I have had a default on my credit rating since then for a ****** wee overdraft from the clydesdale bank for �700 which there poor administration caused. will my mortgage lender do a fresh credit check on me? any other ways round this? many thanks

[Ethel]

Yes, there will be a fresh credit check, and you will need to prove you can afford the mortgage on your own.

The lender will look at your income and the current value of your flat today.

[alanon]

was hoping a fresh credit check would not be reuired as I am an existing customer........will the �700 default cause them to refuse me?

[Nosha123]

They may not refuse you - but they will want to look at all your earnings and affordability since it is unlikely there will be any equity in the actual property (on a 105% mortgage).
Had there been a lower loan to value then they probably would be happier (ie you had put a 20% deposit down)

[Nosha123]

I'm not certain but I think your Wife cannot just walk away from the mortgage!!! and drop you in it. She is liable to pay half of it until such a time that you have taken it on completely. Otherwise her credit rating will be affected too!

[alanon]

she has paid last months share & although has froze me out is likely to pay this months share, the flat was valued last week at 80K and there is 82K outstanding on the mortgage.

another issue is I was going to rent out for 6 months in the meantime to save us both some cah, she was unhappy and this was when she stopped communicating forcing me to take on the potential tenants as "lodgers", if they choose to pay me anything should she benefit from this? she did indicate to our mutual friend that she would like to! cheeky I think after using this as an excuse to freeze me out!

[Ethel]

You must inform your mortgage lenders and your insurance company if you take in lodgers or rent the property out - you need permission from the mortgage company to let.

Whilst you and your girlfriend are equally responsible for paying the mortgage, you are getting the benefit of it and she could ask you for rent (she won't).

In the current financial climate I think you will find it difficult to get a mortgage for 82k on your wage, and nearly impossible to get a mortgage of �82k on a property worth �80k.

A fresh credit check will be required because it will be a new mortgage. There will be legal fees to pay as well.

If your lender does agree to your renting the flat out, you and your girlfriend should equally share the profits of the rent (if any).

[alanon]

thanks Vibrasphere (I think!) hope the "youve just made this up" was not an accusation as it did come across a bit strong! I may be ignorant in these matters but not dishonest.

anyway the script is my mortgage company have not declined but reffered it due to the fact that my new salary is substancial more than when originally got joint mortgage but falls just short.

Does this mean I am in with a chance?

[Ethel]

That deals with the Registered Title, not the mortgage. The original mortgage is in two names, based on two incomes.

The mortgage company may not be prepared to carry on the mortgage with one name - it is quite usual for it to be treated as a new mortgage, especially in the current climate.

[ummmm]

You have to pay to take someones name off the deeds....

[alanon]

ta vibrasphere, has been "Reffered" so ex signed papers today authorising north rock to go ahead with process, i have good credit bar one default for �700 with clydesdale bank, do have high monthly outgoings but are mostly my wifes (she has assumed responsibility for 2 thirds of a �350 loan per month & I have it in black and white from her) but my earnings fall slightly short (I earn �25k & need mortgage for 82k)

whats the process, and whats my chances?