So Tim and Mary are happily divorced and in the agreement the house will be put in Marys name after the mortgage is paid off in another 10 years. Meanwhile both their names are still on the mortgage and the banks are no wiser as to the new arrangement. Tim is happily remarried in another country. Now Mary wants to fix the interest rate ahead of the upcoming downturn but the bank is asking for their addresses and if they still live together. What is the reasoning behind this? I
Bank wants address of ex who is still named on the mortgage
- Thread starter bluefinu
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Brendan Burgess
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Both are mortgage holders and both must seek to fix the mortgage rate.
It would be odd for her to apply on her own.
The fact that they have split up would not be a reason for them not to fix the mortgage rate.
But they will insist on them jointly applying for a fixed rate.
There is no reason for her not to tell the bank that they have split up.
The bank clearly has information that they have split up and will want to add his address to their records to notify him of changes to the mortgage.
She should do so.
If her income is sufficient to cover the mortgage, she should apply to have him removed from the mortgage to save this messing.
Brendan
It would be odd for her to apply on her own.
The fact that they have split up would not be a reason for them not to fix the mortgage rate.
But they will insist on them jointly applying for a fixed rate.
There is no reason for her not to tell the bank that they have split up.
The bank clearly has information that they have split up and will want to add his address to their records to notify him of changes to the mortgage.
She should do so.
If her income is sufficient to cover the mortgage, she should apply to have him removed from the mortgage to save this messing.
Brendan
NoRegretsCoyote
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I've fixed and re-fixed several times with Bank of Ireland. Correspondence comes jointly addressed to my wife and I to one address. For every re-fixing the bank needs both signatures as it is a joint mortgage. AFAIK lenders won't send to separate copies in these circumstances.
Anyway, if Tim is co-operative Mary can just sign the form to fix a rate, post it to him abroad, he then signs and posts it back directly to the lender.
Mary should just ignore the lender's requests about their personal circumstances. If she tells the lender nothing there is nothing they will do. Once the lender has signed instructions from both mortgage holders to fix the rate they will execute.
Brendan Burgess
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This is definitely the correct way to do it.
The problem is that by the time he gets it and the time he sends it back to the bank, the offer of the fixed term may have lapsed.
I have heard in situations like this where it's only a paperwork issue and has no impact whatsoever on the ex, the wife has faked the signature of the husband. The husband does not lose out in any way. The bank does not lose out in any way.
Brendan
NoRegretsCoyote
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Perhaps, but when reviewing an application for a change in conditions made by one of two parties to the loan, I'm sure they'd review the files which would contain the relevant details.
Brendan Burgess
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So you would trust them to give a top-up to one of the joint borrowers with only one signature?
You would trust them to switch to interest-only with only one of the signatures?
Brendan
Re: Tim and Mary .. if something happens to Tim right now would his current wife (not ex wife mary) have a right to make a claim to the property ? Similarly if Tim and new wife had children, wouldnt those children have a claim?
I know it was mentioned to be some agreement in place, as part of divorce but does it cover other possible scenarios?
Also if something happens to Mary, and assuming mortgage protection in place, would the house go to Tim? The mortgage would be paid off and his name is on mortgage and I guess the deeds.
I think mary could find herself in a precarious situation unless she has everything tightly sorted. Can she take on the mortgage in her own name?
I know it was mentioned to be some agreement in place, as part of divorce but does it cover other possible scenarios?
Also if something happens to Mary, and assuming mortgage protection in place, would the house go to Tim? The mortgage would be paid off and his name is on mortgage and I guess the deeds.
I think mary could find herself in a precarious situation unless she has everything tightly sorted. Can she take on the mortgage in her own name?
I don’t think raising a mortgage is an option for Mary. The divorce agreement stipulated that once the life of the mortgage is over the house will go into Marys name. The now grown children have always resided with Mary. Perhaps she should check this out as she has always paid the mortgage through maintenance which was also agreed in the settlement. Her solicitor is since retired and there is still 10 years left on the mortgage. Would there be a way for her to clarify this agreement?
No both signatures could be provided my question was why they want clarification of where both parties live.
Thanks for your reply the court agreed maintenance helps the the mortgage as she has the children full time and raising a mortgage on her own isn’t possible.
Thanks for your reply. She’s not in a position to raise a mortgage. The online form also asks for info on where both parties live so l was wondering was it a standard question.
Unfortunately she’s not in a position to raise a mortgage
Ah, so it was a question on the form rather than the bank acting on suspicions!
As above anyway, both parties need to agree to any change so complete the form and see if the bank are willing to offer a suitable fixed rate.