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Transferring a mortgage into a new name

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  • Transferring a mortgage into a new name


    My boyfriend and his friend own a property together. In 6 month’s time they want to change the mortgage to be in my boyfriend and my names (removing his friend) as his friend is looking to move out. The property is currently in around £2,000 negative equity (worth £150,000 mortgage stands at £152,000).
    We went to see an independent mortgage advisor and she told us we cannot just transfer the mortgage and deeds to me as the mortgage is more than 90% LTV of the property. She said that we would have to raise the money to bring the mortgage down so that it is 90% LTV before the mortgage company would even consider to change the names on the mortgage. Is this correct? Or is she just trying to get us to raise the cash so we have a ‘10% deposit’ of the current value, meaning she can look for a new mortgage and make money out of us? We understand that the mortgage company will want to do a credit check etc on me too.

    We really need to know ASAP


  • #2
    Re: Transferring a mortgage into a new name

    Best thing to do is contact the lender directly for the correct response. It might be that the adviser you have spoken to is giving incorrect information whether through lack of knowledge, lack of research, or a desire to make some money, or it might be that they have contacted the lender on your behalf and that the information they have given you is accurate.

    The only way you will find out for sure is to make your own enquiries directly with the company involved (your partner will have to do this as you are not a named borrower and the lender will therefore not be able to discuss the account with you).
    Property for sale in Torquay



    • #3
      Re: Transferring a mortgage into a new name

      Most lenders would be uncomfortable in making changes to a mortgage on a property which is in negative equity and it gives them a chance to try and make you pay some money to them so that in the event you defaulted and were repossessed they could get their money back.

      Bottom line is until you contact your lender with the question "I am thinking of potentially ......." you will never know. If you tell them you are going to do it then they might make you put money in whereas if you say you are potentially going to do it they cannot do so.

      You can talk to the lender if your partner gives you authority to do so in writing, I have done this many times to help people in financial difficulties.

      You will definitely be credit checked if you want to go on the mortgage, are you also changing the entry on the land registry, you should do this as otherwise your partners friend will still need to give permission for sale in the future and I am sure you can imagine what will happen if your property has increased in price ?

      If the bank do insist on money being introduced could you not ask your partners friend to pay some of the money since (presumably) the legal title is in joint names ?
      Adam Long