There may come a time when your circumstances change and you need to add or remove someone to, or from, an existing mortgage. Let us guide you through what’s involved.
When does a change to borrowers apply?
As your circumstances change you may find that you need to apply for a mortgage to become a joint one or to make changes to an existing joint mortgage. This is called a Transfer of equity and refers to making a change to a mortgage, either to add a new name or remove someone already named on the mortgage - or even both. It doesn’t usually include any changes to the mortgage terms.
In some circumstances this is necessary due to divorce, separation or if there has been bereavement in the family. Or you might decide to add someone to your mortgage alongside adding them to the title deeds if you get married or want to live together.
When does a transfer of equity apply?
You can speak to us about a transfer of equity for the following circumstances:
If you get married and want to transfer a sole mortgage into joint names; usually you would be putting the property deeds into joint names at the same time.
If you get divorced or separate from your partner and want to transfer a joint mortgage into one of your names - usually as part of changing the deeds from joint to sole names.
Removing one of the joint mortgage holders and adding someone else.
Removing one of the joint mortgage holders if they have passed away.
Where a mortgage is in a sole name and the borrower passes away.
If you need to make a change to your mortgage due to one of these circumstances, you will need a conveyancer or legal adviser to carry out the legal work on your behalf.
We will also need a conveyancer to act on our behalf and we can use the same conveyancer as you choose provided that the conveyancer is on our panel.
If you want to change the people named on the mortgage due to any of the circumstances above we will carry out an affordability assessment. This is to ensure that, following any change to the mortgage holders, the loan will remain affordable both now and in foreseeable the future.
At least one of the original borrowers must remain named on the mortgage except when a sole borrower passes away.
A Transfer of Equity is not permitted on buy to let mortgages.
Divorce / Dissolution of a Civil Partnership
If you take out a joint mortgage with another person you are both equally liable for the repayment of the mortgage loan. In the case of divorce or the dissolution of a civil partnership, you have a number of options you may want to discuss with your partner, as well as your respective legal advisers.
It’s important to note, that whilst you are in the process of making any decision, you need to ensure that the mortgage is still being paid. Any missed payments may affect your and your partner’s credit history.
What to do next
Speak to one of our friendly mortgage advisors about your options.