Locked in mortgage with parents?

A reader from Lancashire bought a home with the help of her father and is now trying to move on – but family ties are hard to break.

Drawing on years of experience, mortgage adviser Katie Tucker - technical manager at fee-free whole of market mortgage broker charcol.co.uk - takes her through the situation and what it means for her finances.

A reader from Lancashire asks:

My partner and I were renting in Dorset and wanted to get onto the property ladder.

My family live in Lancashire where the house prices are a lot cheaper, so we relocated, but being without a job my dad went on as a joint applicant to get a mortgage.

He had no interest in the house other than to get me into the area to see me. I have been paying the mortgage now for three years and my dad has never paid anything, he will not however get off the mortgage, meaning I cannot sell the house now that I want to move.

I have contacted my mortgage lender who said I could change the mortgage to remove my dad for a fee, but he has to sign a form to remove himself, which he will not do.

I am in a situation where I am eventually going to lose my job here, and really need to sell the house and relocate. My dad won't let me sell the house, I assume I need his permission to sell the house even though I have paid everything even the deposit for the house.

Is there anything I can do?

Katie replies:

The only way to resolve this is to take legal action. You would show you have paid everything and would have a strong case for "forced sale" (like with a divorce).

I imagine you are reluctant to do this in case it is used against you by your father, as much as your current partnership is.

However, you have been forced into this decision. Your father has given you a moral problem here of choosing between him and your partner, not a financial one.

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

For more information on the issues discussed here, go to mortgage broker charcol.co.uk or call 0800 358 5560.

Charcol Limited is authorised and regulated by the Financial Services Authority (FSA registration number 427339). The FSA does not regulate credit cards, personal loans or some investment mortgage contracts. Some buy-to-let mortgages are regulated by the Consumer Credit Act (CCA).