Ending any relationship brings several financial challenges, especially when shared property is involved.
In most joint mortgages, the primary problem is whether one party can make a change without the other’s consent. This is even more relevant for people looking to remortgage after a divorce.
Mortgage agreements usually require consent from both parties to remortgage a joint mortgage. However, various legal and financial complexities must be navigated.
Today, we will answer the question, “Can my ex remortgage without my consent?” and what you can do to safeguard your interests in such cases.
Table of Contents
What Is A Joint Mortgage?
A joint mortgage is a property loan that two (or more) people take together and are responsible for paying back together.
Couples usually take joint mortgages, but friends, relatives, and family members can also take them to purchase property together.
In a joint mortgage, both parties are equally liable for paying back the loan, and any payment failures are reflected in the credit reports of both (or more) parties involved.
Can My Ex Remortgage Without My Consent?
No, they cannot because remortgaging a joint mortgage requires consent from all parties named in the mortgage agreement.
The lender will need the signature of everyone involved in the mortgage before it can be converted to a new mortgage contract.
This is because remortgaging either involves getting a new deal from your existing lender or switching to a new lender, and either option will directly affect the terms of the agreement.
So, without the express consent of every party involved, a joint mortgage cannot be remortgaged. If one of the borrowers was to apply for a new re mortgage separately, it would fall down at the solicitors stage, as they would be required to complete a transfer of equity which would require agreement from both borrowers and they would not register the new re mortgage on the property title.
Moreover, lenders usually protect the interests of all parties involved in any mortgage. So, the application will be rejected if your ex tries to remortgage without your consent.
Situations Where Consent Is Mandatory
In this section, we’ll examine some scenarios in which the explicit consent of all parties involved in the mortgage deal is mandatory.
1. Switching Deals
During remortgaging, your ex will likely seek better interest rates and favourable repayment terms and might also want to switch lenders.
All of these affect the existing deal, and lenders would need explicit permission from all parties signatory to the agreement to approve this. So, unless you consent, your ex will be unable to remortgage.
2. Releasing Equity
Releasing equity means borrowing money against the property value, and this is an important financial decision as it impacts ownership and loan balance.
As a result, both (or all) parties involved in a joint mortgage must agree in this case so that one person cannot unfairly access shared assets.
3. Ownership Structure Modification
Remortgaging can involve updating the property’s ownership structure. As a result, this requires all parties’ express permission and signature.
This ensures no one can make decisions unilaterally without everyone else’s consent.
Some Exceptional Circumstances
In the above section, we’ve seen that joint mortgages usually have provisions to protect all parties’ interests.
However, certain exceptional circumstances exist where one party can proceed without the other’s consent. These are usually cases of legal interventions, and some of these are mentioned below.
1. Divorce Court Orders
Divorce courts in the UK can enforce decisions regarding shared property and mortgages. Courts can order one party to take over the mortgage entirely to maintain financial stability.
In these cases, the lender must agree with the court’s directive, even without the other party’s permission. Of course the applicant on the mortgage must meet the lender’s criteria and this will all have to go through the correct legal channels.
2. Sole Responsibility
Suppose one of the parties in a joint mortgage can prove that they have been solely responsible for the mortgage payments over an extended time.
In that case, they might move to court or request the lender to take full responsibility and ownership of the mortgage as an exceptional circumstance.
3. Consent Refusal
In case one of the parties refuses to remortgage, the other(s) might seek legal action. This is a last resort; courts will intervene to resolve the disputes if the refusal is unfair.
Steps You Can Take To Protect Your Financial Interests
When dealing with a joint mortgage after a divorce, ensuring your financial interests are not hampered is vital.
Here are some steps and tips you can take to protect your interests:
- Monitor the mortgage account closely and request regular statements
- Act immediately in case of any unauthorised transactions
- Always seek legal advice in case of disputes
- Promptly communicate with the lender in case you spot any unauthorised changes
- In case of problems communicating with your ex, seek mediation
- Regularly check your credit file for mortgage discrepancies.
Frequently Asked Questions (FAQs)
1. What happens if my ex tries to remortgage without telling me?
In this case, the lender will unlikely agree to the remortgage without your consent or this will be found out at the conveyancing stage. If you suspect your ex is trying to do something similar, contact your lender and inform them immediately.
2. What can I do if my ex refuses to consent to a remortgage?
If your ex refuses to consent to a remortgage, you can consider mediation services or seek legal advice. As a last resort, you can move to court, and the judge can enforce a decision in your favour if the refusal is deemed unreasonable.
Your home may be repossessed if you do not keep up repayments on your mortgage.
All content is written by qualified mortgage advisors to provide current, reliable and accurate mortgage information. The information on this website is not specific for each individual reader and therefore does not constitute financial advice.
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