Removing the Ex from the Mortgage

Man standing along on a hilside next to a house

Relationship splits make up a surprisingly large part of what we do. When you and your partner split up, either the property needs to be sold or one of you needs to buy the other out. There may be other debts that also need to be discussed. It is not necessarily straightforward.

When it comes to the mortgage, the lender will not always release one of the parties from the mortgage or the property, so this should not be taken for granted. It is up to you or your ex to demonstrate to the lender that you can service the mortgage on your own. Once we have proven that you can service the mortgage on your own we can get the transfer of the mortgage approved in principle. Before it can be fully approved, and the transfer completed, the lender will need to see a signed relationship property agreement.

Things to remember:

  • We will need a signed relationship property agreement.
  • Any joint credit card or overdraft accounts will need to be closed.
  • Any guarantees on behalf of the ex will need to be cancelled.

Amicable (unofficial) separations

Even with an amicable separation, if you own a property with your ex you will be jointly liable for the mortgage. Even if you do not live at the property or pay the mortgage, any lender will still view the debt as yours. They will assess your servicing ability based on the whole mortgage, not just half of it. This can complicate things if you want to buy another property down the track.