Mortgage on own when married

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Sallyella

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Hi, I have a situation where my husband has got in a bit of bother and has gone into arrears with a bank loan. He basically topped it up a lot of times over recent years. Both it looks like it is going to to the ombudsman as it has since been advised to him that the bank were negligent. He is still paying a bit towards it under temporary terms until it's all sorted out but right now it looks like his credit rating is bad as it is showing his arrears.

So I have a mortgage with him on a family home a few years now. We also inherited a house a few years back which we almost have sold. Therefore I will come out with a good bit of money cash in hand. Our plan the whole way along was to also sell our current family home and buy somewhere bigger while downsizing our mortgage at the same time as we would have the guts of 70% of the purchase price of a new home through the sale of my inherited property.

My trouble is I need the extra 30% through a small mortgage. But because my hb has a bad credit rating I reckon it will be refused even though it will be for such a small amount. And until now I was unaware a married person couldn't get a loan by themselves.

Looking for any advice anyone might have. I'm eager to move on with our plans as it is going toake our whole financial situation better in the long run. I.e current mortgage 210k - new mortgage will only be 50k at most.
 
A married person can get a mortgage by themselves but just not for the family home, they could get one for example on a buy to let. If you had sufficient income on your own you could contemplate buying the new one as a buy to let and then selling your own and moving in, assuming you could get one at the same rate as a home loan.
 
You need to get your husbands liability sorted out on the loan he's in arrears on. Not necessarily settled but get proper advice on it and what the likely outcome will be.

If that lender moves against him (assuming its a normal personal loan), they could/should come after his share in the the other assets you have i.e. the equity in your existing home and the equity in the home you inherited.

But as Monbretia stated, there's nothing stopping you getting a loan off your own bat. The problem is BTL rates are well above standard mortgages.
 
Sallyella said:
Hi, I have a situation where my husband has got in a bit of bother and has gone into arrears with a bank loan. He basically topped it up a lot of times over recent years. Both it looks like it is going to to the ombudsman as it has since been advised to him that the bank were negligent. He is still paying a bit towards it under temporary terms until it's all sorted out but right now it looks like his credit rating is bad as it is showing his arrears.

So I have a mortgage with him on a family home a few years now. We also inherited a house a few years back which we almost have sold. Therefore I will come out with a good bit of money cash in hand. Our plan the whole way along was to also sell our current family home and buy somewhere bigger while downsizing our mortgage at the same time as we would have the guts of 70% of the purchase price of a new home through the sale of my inherited property.

My trouble is I need the extra 30% through a small mortgage. But because my hb has a bad credit rating I reckon it will be refused even though it will be for such a small amount. And until now I was unaware a married person couldn't get a loan by themselves.

Looking for any advice anyone might have. I'm eager to move on with our plans as it is going toake our whole financial situation better in the long run. I.e current mortgage 210k - new mortgage will only be 50k at most.
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Can I also add that the inherited property is my house solely and not in my husbands name. I know some people may suggest clearing my husbands loan for him but that is definitely something I want to avoid at all costs for various personal reasons.
Monbretia said:
A married person can get a mortgage by themselves but just not for the family home, they could get one for example on a buy to let. If you had sufficient income on your own you could contemplate buying the new one as a buy to let and then selling your own and moving in, assuming you could get one at the same rate as a home loan.
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yeah not sure they would look at me for the extra mortgage on top of the one I already have. Worth looking at though I suppose.
 
Andy836 said:
You need to get your husbands liability sorted out on the loan he's in arrears on. Not necessarily settled but get proper advice on it and what the likely outcome will be.

If that lender moves against him (assuming its a normal personal loan), they could/should come after his share in the the other assets you have i.e. the equity in your existing home and the equity in the home you inherited.

But as Monbretia stated, there's nothing stopping you getting a loan off your own bat. The problem is BTL rates are well above standard mortgages.
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We have been advised that as the inherited house is in my name they cannot touch my savings/assets as the loan is solely on his own name. I do hope that is true as I was very apprehensive that they could come after my money in an attempt to clear his loan?
 
Credit Union an option? Rate would be higher but would be secured loan and they are sometimes more open to unusual situations like this.
 
Sallyella said:
We have been advised that as the inherited house is in my name they cannot touch my savings/assets as the loan is solely on his own name. I do hope that is true as I was very apprehensive that they could come after my money in an attempt to clear his loan?
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I think this is a bit like digging your head in the sand instead of dealing with reality. Firslty how much does your husband owe. From what you posted his share of the 'equity' in the family home might be at risk. You know about 'his' loan presumably, and about the fact that he kept 'topping' it up. How far along with the ombudsman are you.

I would advise going to a bank detailing what you've posted on here and see what they say. Alternatively wait until your husbands case has been heard.

By the way, if the ombudsman rules against you husband what is your plan then?
 
Sallyalla,

I cannot see a negligence case on the terms you mentioned, succeeding in any way.
Mr Bank may well have been stupid/negligent in keeping lending but if that was a (crime) bankers would mostly be jailed! It is never Banks responsibility unless in rare extenuating circumstances.

Your husbands ICB (irishcreditbureau) will be shot for the next few years.
As Bronte said, his equity in joint mortgage is at risk of being taken when house is sold.
eg sold for k200 less mortgage k100 leaves k100 , in law this k100 is k50 husband & k50 wife . ie his k50 is at risk.

At this stage it would be wise to try to come to an agreed repayment on the loans.I wouldn,t be inclined to wait on ombudsmans case.
That will stall any charge ie (stop bank getting funds from sale of family home)

You can then
1. Sell family home and keep any profit.
2. Husband can keep repaying new agreed amount on loans.If he stops paying it is only him that Bank can chase.

You seem to worry that other assets/savings in your name may be hit.
Unless you guaranteed husbands loans, the answer is 100% your assets are untouchable.

Hope this helps.
 
Sallyella said:
We have been advised that as the inherited house is in my name they cannot touch my savings/assets as the loan is solely on his own name. I do hope that is true as I was very apprehensive that they could come after my money in an attempt to clear his loan?
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In that case then the inherited house should be fine.
 
Hi guys. Thanks for the replies.
Bronte....no please don't think I am burying my head in the sand. I didn't know about my husbands increasing loan at all. It was all done behind my back and its all a bit of a mess. A relative of my husband who is a former bank employee told him to stop paying the loan as she thought he had a good case against the bank. This was not my decision and I haven't been happy about it.

Gerry we wouldn't be making any gain on our family home. We would be lucky just to break even. So there would be nothing for them to take from my husbands share as such. But completely see where you are coming from.

Do you think if I went to the bank that we have our current mortgage with and tell them about the sale of our other house and came to some agreement with my husbands loan that they would give us the small mortgage as in essence we would be significantly reducing our current mortgage. Just to note our current mortgage is fully paid up, never any issues and my own credit rating is spotless.

I am trying to get to a situation that I use the money from my 2nd house wisely.

Maybe I am better forgetting about it for now. It's just all a bit upsetting.
 
Sallyella said:
.
I didn't know about my husbands increasing loan at all. It was all done behind my back and its all a bit of a mess. A relative of my husband who is a former bank employee told him to stop paying the loan as she thought he had a good case against the bank. This was not my decision and I haven't been happy about it.

Do you think if I went to the bank that we have our current mortgage with and tell them about the sale of our other house and came to some agreement with my husbands loan that they would give us the small mortgage as in essence we would be significantly reducing our current mortgage. Just to note our current mortgage is fully paid up, never any issues and my own credit rating is spotless.

.
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I can well see how you'd be upset. I think it's an excellent idea about going to the bank. Cards on the table and see what they say. Perhaps it would be an idea to pay off your husbands loan now, and get a larger mortgage. This should be very doable, particularly if it's the same bank.

That relative of your husband would want to be very sure of himself giving advice like that. My advice is that if you borrowed the money you pay it back.

Going forward, as a marrid couple in relation to finances in particular, people shouldn't be doing things behind the other persons back. No doubt you've already had that discussion so it's best now to get over it and deal with it and move on.

If the above doesn't work I suggest you go to a very good broker who will tell you what to do and if it's possible. Try poster LD Ferguson on here, he'll tell you if you have any chance.
 
Sallyella said:
Do you think if I went to the bank that we have our current mortgage with and tell them about the sale of our other house and came to some agreement with my husbands loan that they would give us the small mortgage as in essence we would be significantly reducing our current mortgage.
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As long as they are not the same bank that your husband owse the money to. Be careful here, all the bank that is owed the money want is there money back, they don't care about you or your circumstances. There's a reason Mr Banker rhymes with another word :). I second Brontes post about Liam.
 
Gerry Canning said:
As Bronte said, his equity in joint mortgage is at risk of being taken when house is sold.
eg sold for k200 less mortgage k100 leaves k100 , in law this k100 is k50 husband & k50 wife . ie his k50 is at risk.
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Maybe pedantic in the greater scheme of things but are you sure that this is correct?
It's a common assumption that married couples share their pooled resources 50:50 but it's not necessarily the case - e.g. when it comes to separation/divorce anyway.
 
I'm only giving my opinion. If you sell a house and have 100K in your joint account, to me in a married couple, you both own half. Then they can go after that.

If we talk divorce, that's for a court to decide who gets what. Including giving the house to one partner etc but this is making this scenario very complicated and it's not needed.

There's also another argument. If one person alone pays the joint mortgage, it could be argued, despite the house and mortgage being in both names, that the one paying the mortgage owns everything. With all the changes in laws I haven't kept up with it all, so maybe the fact that, in general, women staying at home, usually equal zero in monetary terms for calculating who gets what. It was also an issue in relation into who put what into deposits.
 
elcato said:
As long as they are not the same bank that your husband owse the money to. Be careful here, all the bank that is owed the money want is there money back, they don't care about you or your circumstances. There's a reason Mr Banker rhymes with another word :). I second Brontes post about Liam.
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I love this Elcato . All the same bank with loan and mortgage. Yeah I mean look it's another reason why I would prefer the house/mortgage of new house in my own name. While I love my hubby dearly and he is a great dad he cannot be trusted with money. So it's just frustrating on my part that we could be stuck in the house/mortgage situation for a while if I don't clear 25k of a loan for him. He doesn't want me to do that. But I don't want to be stuck in this house/large mortgage for years to come either. Ah think I just need to get some legal advice maybe.thanks all.
 
Sallyella said:
I know some people may suggest clearing my husbands loan for him but that is definitely something I want to avoid at all costs for various personal reasons.
Click to expand...
vs
if I don't clear 25k of a loan for him. He doesn't want me to do that

So which is it then:)

Why don't you lay out the numbers here: my guess is, based on what you have written the LTV is 100% at 210k so no equity in the family home.
then you write
My trouble is I need the extra 30% through a small mortgage. ........ I.e current mortgage 210k - new mortgage will only be 50k at most.

So this suggests the new house is only worth 166k [ 50/30% ] for what you say is a bigger house, and the inheritance then looks like being 116k or so.
so if u repay the 25k the the mortgage goes to 75 on 166 which is LTV of 45% which is very doable.


Before you get legal advice,which won't be much different than what has been written here, but will cost a bundle more, you need to clarify the numbers and your thinking and forget about the om-bulls-man, you can still pursue the case, even if you repay the loan.
 
My
ircoha said:
vs
if I don't clear 25k of a loan for him. He doesn't want me to do that

So which is it then:)

Why don't you lay out the numbers here: my guess is, based on what you have written the LTV is 100% at 210k so no equity in the family home.
then you write
My trouble is I need the extra 30% through a small mortgage. ........ I.e current mortgage 210k - new mortgage will only be 50k at most.

So this suggests the new house is only worth 166k [ 50/30% ] for what you say is a bigger house, and the inheritance then looks like being 116k or so.
so if u repay the 25k the the mortgage goes to 75 on 166 which is LTV of 45% which is very doable.


Before you get legal advice,which won't be much different than what has been written here, but will cost a bundle more, you need to clarify the numbers and your thinking and forget about the om-bulls-man, you can still pursue the case, even if you repay the loan.
Click to expand...
Our current mortgage balance is 210k. The house is valued around 200k mark so we might just break even.
My inherited house is going to be sold for 225k. Sale agreed stage. I will owe capital gains tax of 35k though so will prob come out with 180k after all bills are paid.

180k won't buy a house around my area for this price so Thats where I am coming with a ball park figure of 50k of an additional mortgage.

Regarding my HB loan.....out of a moral aspect I would rather not pay it as I have paid a lot of debt off for him already and he needs to see the error of his ways. I'm trying not to get involved in his whole mess. But if I have to pay it so that we can put the money from my inheritance to good use I will.

I didn't post here to be judged. Just for any advice on mortgages/loans on my own. Thanks
 
Irocha is trying to help you. It's very important you tell us the details including your financial fears in relation to your husband. We've heard it all on here before.

Is the mortgage on your home in joint names? Have you been paying that correctly all along. Do you or he pay it or both, are your finances joint.

What did he do with the money from the loan, was it spent on the family, a car, gambling etc. instead of a solicitor I would suggest you both need to sit down and decide going forward what solution can be found for your fears and his issue.

I have by the way a radical solution for you if it's totally impossible to get a mortgage. You pretend you are separated and you do everything to demonstrate that to a bank, then you go to the bank as a single separated woman. If your husbands issue is serious, like gambling, this is what I would do. That way you protect the assets for the whole family.
 
Bronte said:
I have by the way a radical solution for you if it's totally impossible to get a mortgage. You pretend you are separated and you do everything to demonstrate that to a bank, then you go to the bank as a single separated woman. If your husbands issue is serious, like gambling, this is what I would do. That way you protect the assets for the whole family.
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What about stuff like the Family Home Protection Act?
I don't think that you can abrogate the likes of that (and maybe other laws relating to married couples/families) simply by lying.
I would treat advice like the above with extreme caution.
Sounds very dodgy to me.
 
Bronte, your suggestion wouldn't work without producing legal separation etc and that's a bit drastic not to mention costly.

Apply for the new house as a buy to let in your own name, rate might be higher but you may be able to reduce that if in future it becomes the family home, check with bank 'what if' you were to move in eventually.
 
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