Ulster Bank - being unreasonable??

A

aoc

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advices please:

trying to deal with Ulster Bank - Ex. and myself have come to agreement that he will take over (as in get new I realize all of that) mortgage on our joint property - here's the problem. I currently live in the house with our daughter, but bank are asking that he live there and show that he has affordability to pay mortgage for 6 months before they give him a mortgage. This leaves me in a very uncertain position - which I have explained to branch advisor - to no avail. There will be nothing legal or in writing to confirm this - what happens in 6 months if he does not get approval then for some reason (they have checked he has affordability).

In my mind we are offering them a solution to a messy situation - I have questioned if he has affordability why do we need to wait 6 months and in reality they are asking me to vacate the family home ... and in 6 months if they did decide not to approve mortgage I would have moved, allowed ex. to move in and my name would still be on deeds....

any advices????? should I contact branch manager???
 
The bank are not being unreasonable.

At the moment, you are both jointly liable for the mortgage meaning that the bank can follow either of you if you go into arrears. This is good for the bank.

You are looking for your ex partner to take on a mortgage for a house that he will not be living in. No bank will offer a residential mortgage on this basis.

What you are offering the bank isn't "a solution to a messy situation". It is an offer for them to take on significant additional risk with no potential extra reward.

Sorry for being so blunt but it's best to be honest than to try to sugar-coat it.
 
What is your actual plan?

Ex takes over mortgage and ownership of the house, and moves into the house. You and your daughter move out.

Ulster Bank are under no legal or moral obligation to allow you take your name off the mortgage.


In my mind we are offering them a solution to a messy situation
Click to expand...

Is the current situation messy for Ulster Bank? It doesn't sound like it. They don't need a solution. You do.

UB are being totally reasonable to ask him to prove that he can afford the mortgage. It's not quite the same, but offers of split mortgages are usually provisional. The mortgage holder has to prove that he can meet the repayments for 6 months.

If you are planning to move out and if your ex can afford the mortgage on his own, it doesn't make a huge difference to you. If they refuse to allow your name off the mortgage, your name will still be on the deeds. If the house is in positive equity, you could force a sale if he does not meet his repayments.

I do think that they should give you something in writing. Maybe not a commitment, but an indication.

Your ex should formally apply for a mortgage in his own name. This may prompt a refusal with a note why it's being refused.

Alternatively, you and your ex should do a side agreement that he takes full responsibility for the mortgage and you renounce your interest in the house. If he fails to get your name off the mortgage within 2 years, then the house would be sold.

Brendan
 
Yes I understand where you are coming from......

To clarify - I am not looking for him to take on a mortgage for a house he will not be living in - he will take out a mortgage for the house and he will be living there.....
I think you have mis-read my post.....

He has a new partner and will be taking out a joint mortgage - so in effect the bank again could as you put it follow either of them.........
 
Brendan -

Yes that is the plan - it has taken 5 years to get this far!

I understand that they have no obligation - one of my wonderings is - if I did not own a property and applied for a mortgage the bank would not make me live there for 6 months before approving a mortgage.... this is where I am coming from.....

house in in negative equity -- I have no problem with my name coming off deeds....

The mortgage advisor in the branch has confirmed that they will not give him a mortgage until he has paid the current one for 6 months, he can then apply - but have given no guarantee that they will then approve his application.......

my fear is that I vacate the house with nothing legal / likely to be for the bones of a year..... its v uncertain and an amicable as things can be ....people change their minds etc
 
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