Splitting up and having trouble remortgaging?

A reader's daughter is having trouble remortgaging after splitting up with her partner.

Tony Davis, myfinances.co.uk mortgage expert from Mortgage Meadow, takes her through the problem and what it means to her finances.

Sue from Harlow asks:

My daughter bought house with her partner but they have now split.

She has applied to Northern Rock to continue with mortgage alone so she can keep house but her application has been refused.

My husband and I are too old to stand guarantor.

Are there any other options for her?

Tony replies:

There are several options to consider.

Firstly, has your daughter considered sharing the house with a friend or other family member, who would be willing to replace her ex-partner's stake and name on the mortgage?

Another option is for your daughter to draft an agreement between her and her ex-partner agreeing the terms of the ownership of the property between them, for example, your daughter owns 100 per cent of the equity on the basis that she maintains all costs going forward – this can be tricky to negotiate and has no bearing with regards the lenders contract with them both, but might be sufficient as a half-way house for the two people involved. You daughter should seek legal advice if she wants to explore this option further.

If you have a question for Tony, go to the myfinances.co.uk Ask the Mortgage Expert section.

Or for more information or mortgage advice go to Mortgage Meadow.

Mortgage Meadow is an independent mortgage broker and is authorised and regulated by the Financial Services Authority.