Adding Someone To Your Mortgage

What Are The Steps To Add Partner Or Spouse To A Mortgage?

1. Discussion:

The first step is to have a discussion with the person you want to add to your mortgage. Having discussed all the pros and cons and what you’re getting yourself into, you will be more  prepared for a situation that may arise latter.

2. Cost Calculation:

This can be overlooked at times, but you need to make sure that you are prepared for the incoming charges that you will face, from things like Early repayment charges, Broker/lender fees, and solicitor fees. If you are borrowing more, then mortgage payments could go up too.

3. Talk To Your Mortgage Broker:

Having a mortgage broker on your side can make things a lot easier for you. A good quality mortgage broker can tell you if going directly to a mortgage lender or remortgaging to a new one which is the best option for your case. Always work with a fee free mortgage broker like MariannaFS to save money on broker fees, and do not forget to check out clients reviews.

4. Contact Solicitors:

Having discussed with solicitors about your plans to add someone to your mortgage and having understood the options available  if things do not work out. Solicitors can also  advise on the type of the ownership options like Joint tenants or Tenants in common.

5. Mortgage Application:

After considering all the costs and legalities, when you are ready you can make the mortgage application with the help of the mortgage broker. Your mortgage broker will consider the best possible option for you, by using years of expertise to search the whole market to give you the best deal possible. Once the mortgage application is approved you will have the mortgage offer.

6. Completing The Legal Process.

After submitting the mortgage application your solicitor will work on the legal process of adding a name to the mortgage. The process involves signing a form from both applicants and this is sent to the land registry for registration. Solicitors do all the work while completing the remortgage.

What Should You Consider Before Adding Partner Or Spouse To Your Mortgage?

Adding someone to your mortgage may be better for you or it may not be the right move, as it could end up with you getting a worse deal than before, so you will need to make sure that you have considered some points first.

 Fees:

• You will need to consider the fees charged by your lender while adding someone to the current mortgage.
• Adding a second person to the mortgage will require legal work which involves the solicitors’ fees on top of the remortgage fees. A Standalone transfer of equity may cost around £300 to £600 in solicitors fees.
• Early Repayment Charges – your lender could charge Early Repayment Charges if you break your mortgage early to add someone to your mortgage. The ERC is usually 2 % and 1% of the loan amount on a 2 years fixed rate mortgage.

Credit Profile:

• If you plan on adding your partner to your Mortgage, they will need to go through their own financial checks (such as credit checks) just like you had to when you first applied for your Mortgage. If their credit score is not good enough as per the lender’s requirement, then your lender may reject the application to add someone to your mortgage, or you may get a higher rate and therefore higher monthly payments.

Relationship Status:

• Being a married couple or in a civil relationship means that both parties will have mostly joint mortgages and 100% of the property ownership will be passed on to the surviving partner after the death of  the other. But if the person is not married or in a civil relationship then the property ownership may not to pass on to the surviving partner.

What If My Lender Doesn’t Want To Add My Partner or Spouse To My Mortgage?

Just because your lender won’t agree to add your partner or spouse to the mortgage, it doesn’t mean other lenders won’t allow it.  A mortgage broker can check with their other lenders if you fit their criteria. Mortgage brokers can compare mortgage deals from all of market , saving you the hassle and time of doing it yourself.

Can One Spouse Remortgage A Property Without The Other?

If only one person name is on the existing mortgage, then they can usually remortgage on their own. But if both spouses are on the mortgage, they’ll need to apply together to remortgage. Mortgage lender won’t allow one person to remortgage while property is on both names.

But during divorce settlement this is possible by taking one persons name of the mortgage. The remaining borrower must qualify the income, credit score requirements.

Can Both Spouses Be On The Mortgage But Only One On The Title?

Yes It’s possible but not many people would do this arrangement unless this is done for tax planning purpose. Most lenders prefer that all borrowers to be same as on mortgage and on title because a person not on the title acts as a guarantor rather than a legal owner. Very few number of lenders would allow both borrowers and sole name on title.

What Are The Types Of Property Ownership?

There are two major types of property ownership.

Tenants in Common:

In this type of property ownership you and your partner hold the property in percentage. For example the share can be a 60/40 ownership in property. The percentage of share can be passed on to the next of kin which may not be the partner.

Joint Tenants

In this type of property ownership both  partners own the property in equal share. In the event of the death of one person, their share of the property is automatically passed on to the partner. Many married couples keep the joint tenants ownership.

Is Adding A Partner Or Spouse To A Mortgage A Good Idea?

It is down to your personal circumstances whether it is good idea or not. But adding someone to mortgage means sharing your property ownership. Always discussing the pros and cons of adding someone to your mortgage will help you to decide if adding someone to current mortgage is good idea or not.

Can  I Remove Someone From My Mortgage?

Removing someone  from the property is the same process as adding someone to property. It is common when someone wants to move out of the property the next person wants to buy out their shares .

If for any reason you wish to take off someone from the mortgage,  approaching the lender will be the first step.

It can be difficult to pass the income and affordability from a joint name to a single name. Many lenders will require at least 10% equity in the property while remortgaging.

How Can A Mortgage Broker Help Add Partner Or Spouse To A Mortgage?

The process of adding someone to the mortgage can be complicated if you decide to go to the lender directly.

But going through a mortgage broker can make things easy, as the broker can advise you the best solution for your circumstances.

We at MariannaFS offer fee free mortgage advice from the whole of market, delivering you the highest quality mortgages available.

If you are thinking to add or remove someone from a mortgage get in touch with us for impartial mortgage advice.

FAQs:

Benefits Of Adding Someone To Mortgage

Adding a partner, spouse to your mortgage can provide advantages in financial borrowing capacity as both income consider, legal security, and personal stability. Adding a spouse or partner known as a “transfer of equity,”

Can I Add My Spouse To My Mortgage Without Remortgaging

Adding a spouse or partner without remortgaging is possible. The process involves approaching your current lender and request to add your spouse or partner through a transfer of equity. Bear in mind this is not a straightforward as it sounds as the process involve solicitors to make changes to title and mortgage lender has to agree to the changes.

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