changing mortgage security

S

sanityclaus

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I'm wondering if anyone has been down the road I'm planning.
Am separated - spouse in family home - me in rented accommodation. Both want to sell family home & buy 2 smaller homes with the proceeds. Not looking for new mortgage, just keep the one we have & instead of one big house as security there will be 2 smaller ones. Security value would be the same. Bank not playing ball. Insist that 2 new mortgages be taken out for new houses & clear present mortgage from sale proceeds.
Problem is that will not qualify for mortgage anymore, due to changes in finances.
Cannot meet full mortgage for several years but if the monthly rent being paid by me was given to bank then full repayment possible. Cannot get bank to see it this way. They would not be any more exposed than they are now & we could get on with our independent lives.
I would welcome feedback from anyone who has succeeded with this type of arrangement or on how I can push the bank to agree.
 
No way will a bank agree to this nor should they.

What you need to negotiate is
a) permission to sell
b) confirmation that they will issue you two new mortgages

I doubt very much they will agree to it though if as you say your finances don't stack up to a new house. The bank is not interested in your marital woes.

How about you post us some actual concrete figures on this in order to get better advice. Maybe one of you could get a mortgage and later the other one.
 
As Bronte says banks are not going to do this. This is not general bank practice switching mortgages from one property to another, the procedure normally is you pay off the one on the property being sold and reapply on new property. There simply aren't procedures in place to do this easily and banks are not going to make new ones to facilitate one customer.

Unfortunately I don't even think you will get them to agree to issue two new mortgages of same amount instead of the existing one if you don't qualify under their new criteria, they wouldn't have a leg to stand on if it ever ended up in court.
 
thanks to Bronte & Monbretia.
I don't want a new mortgage, just agreement to accept different security.
 
I know you don't but to the bank that is a new mortgage, they won't just swap the names of the properties around, they need to create a new mortgage on the new properties.
 
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