Anyone ever removed a borrower from a mortgage?

dano1066

I find myself in a conflicting situation. I have had 2 separate discussions with different mortgage advisors from bank of Ireland and they have told me that it will be possible to remove my ex from our joint mortgage and I'll be able to retain my current fixed rate. I asked if anything at all will change with monthly repayments etc. and they both said no. I'll complete the remove borrower application form and based on their "not final" assessment, I should pass the means test to be able to repay it alone.

The problem I have is that all legal advice I have gotten from my solicitor and other places online is this isn't possible. I'll need to remortgage and I'll lose my existing rate etc.

So I've the solicitor telling me the bank don't allow borrowers to be removed from a mortgage and the bank telling me they do and it will all be fine.

Has anyone completed this process with BOI before and can give some advice so I don't end up losing my current mortgage rate?

road_high

i don’t know the answer but I find it hard to believe the amount allowed to borrow could remain the same (by removing your ex partners income capacity) and monthly repayments

dano1066

https://www.boards.ie/discussion/comment/121528881#Comment_121528881

It requires me to go through a financial assessment but the mortgage advisor did this, which she did say was not a final answer, but she said my ability to repay alone will satisfy the bank and should go through the underwriters without any issue.

So this is all the more confusing to me when the bank are so strongly suggesting I can remove a borrower but the solicitor isn't convinced.

standardg60

Not with BOI but I had an ex removed with no change to rate ( I was on a tracker) or term so it's certainly possible.

https://www.boards.ie/discussion/comment/121528907#Comment_121528907

Is it the banks or your solicitor that is giving you your mortgage? Surely therein lies your answer?

dano1066

https://www.boards.ie/discussion/comment/121529034#Comment_121529034

Any advice you can give that might help me communicate this with my solicitor?

standardg60

https://www.boards.ie/discussion/comment/121529046#Comment_121529046

I would imagine it's something your solicitor hasn't known to happen before, but that's not to say it doesn't. You'll both find out only when you go through the application, but it's certainly within the remit of the bank to do it.

Full disclosure, my term was supposed to be extended by ten years. When the process was being stalled by the bank my solicitor gave me the guys name they were dealing with and said 'you try'. So I did, rang up, got through to him, explained my anxiousness to get it sorted, and he did it there and then, without extending the term.

I suppose I'm one of those who fell through the crack, but it can be done!

Jim2007

The bank officials are only interested in is the aspects of a mortgage that ensures they get paid and nothing else. Your solicitor has your interests at heart and is looking at the totality of the transaction and how it will impact you. So pay particular attention to the advice given to you by your solicitor.

Understand this, removing someone from a mortgage does not change the fact that they pledged the original asset for the mortgage nor their ownership rights in the underlying asset. And I suspect your solicitor's view by well have something to do with safeguarding your rights in the asset.

Lenar3556

Again I don’t know the answer, but why would the bank agree to remove a borrower from the mortgage?

Both yourself and your ex partner will be jointly and severally liable to keep up the repayments and comply with any other conditions of the loan. It wouldn’t be in the banks interest to simply release one party, so unless they are under some statutory or contractual obligation to do so I can’t see there being much appetite to do what you are seeking? There may be a commercial benefit to them in selling you a new product at a higher rate, so maybe that would fly.

I would echo the sentiments of the poster above in considering carefully the advice of your solicitor.

3DataModem

What's probably confusing your solicitor is the term "remove a borrower".

What's actually happening is that you are drawing up a new mortgage, with one less borrower, at the same terms as the old mortgage. This is a little surprising, but perhaps your ability to repay is really strong, OR your existing terms aren't that great.

Much more likely is that the broker is missing out a few details. Perhaps the rate is the same, but the terms aren't, etc.

Timing belt

a few questions when you say ex or you talking about x wife and if so have the terms of divorce been agreed in the courts? If they haven’t then despite you taking on the full mortgage she would still potentially have a right to 50% of the property and wouldn’t have to repay her 50% of the mortgage. If you weren’t married but were cohabiting for x no of years then the same would apply. Maybe ask the solicitor to explain his concerns because you could save a few cents on repayments but have to fork out Euros as a result because it may be considered that you took on her debt out of the goodness in your heart.

Mrsquigley

I am just in the middle of doing this with BOI presently. Removing my ex husband from mortgage. He resigned all rights to property when we divorced and has no claim on it at all.

So app sent in Jan , still going over and back with BOI in emails . Hope to have decision soon .

Did you get a resolution yet ?