Removing a name from a joint mortgage for most UK mortgage lenders
This involves two components: looking at your mortgage agreement and then working out the legal requirements to get out of the contract.
We have a few mortgage providers lending for different situations and personal circumstances.
The quickest way is to contact us, as we have experts on hand to help you remove a name from your mortgage, so enquire now below:
The legal process of removing someone from a joint mortgage
It is pretty simple to follow the legal process, provided all parties agree about what should happen.
The solicitors (conveyancers), who will set up the legal charge for the lender and the parties named on the ownership set-up on the Land Registry, etc., will be involved as with any mortgage application.
What do you need to do? You would tell the mortgage advisor and solicitor that you are applying for a mortgage. The solicitors will then send you the required title transfer documents and the standard remortgage package.
This usually comes with an additional charge of around a hundred pounds. However, you don’t need to use a different mortgage conveyancer (unless that is what you are looking for) because they can handle everything.
If all parties agree, approval can be granted within a day.
If the person you want to pay the mortgage disagrees, your options become a legal challenge. This can be expensive for everyone, so it is best to avoid it! This can often lead to the property being sold. However, one or both of them will need compromise at some point.
The mortgage process of removing a name from joint mortgages
It can be straightforward to get a mortgage.
You will first need to review your existing mortgage to determine if it is worth looking at other lenders or staying with the current deal.
You should not be tied to your current contract or have repayment penalties that make it worth it. If this is the case, you should switch to another lender. It could be cheaper, and you might get a better rate.
This is similar to a remortgage, which involves a new application.
Even if you keep the same mortgage, the lender will need to evaluate whether the person who remains on the mortgage can afford the loan and is creditworthy. To ensure responsible lending, the lender must understand your current financial situation, income, and credit history.
They will check your credit score and income and ask for bank statements or self-employed proof of payment. They may send someone out to revalue the property (newer lenders are more likely than old ones to do this).
Although applying to a new lender is similar to staying at your current location, it may take slightly longer if they have to value your property.
Once you have been approved, you can relax. The solicitors will send you all the paperwork. After you sign and return all documents, the solicitors will notify the lender. If everything is in order, it can be completed within a month.
Suppose your current lender declines you (usually due to credit score, affordability, or, i.e. If your income isn’t sufficient to pay the mortgage, don’t panic. There may be other lenders that will offer you the mortgage. An exclusive mortgage expert will be able to give you the best advice. They are experts in the market and can help you with any questions.
Send us an enquiry, and we’ll connect you with one.
I need to get someone out of my mortgage without having to buy them out
Remember that you can cancel a mortgage without having to buy them out. Once they agree, the lender will approve it. It all depends on how the ownership is set up. Most property is owned as “joint tenants, ” meaning you each own the entire property. Therefore, any equity would be divided equally between you (or whatever agreement you make if you disagree).
Many are set up as “tenants-in-common, ” meaning you have already decided who has what equity share. You would probably know this if you did it, but it is worth speaking with the lawyer who created it. It doesn’t matter what; it is possible as long as you agree to it.
It is called a “transfer of equity”, and the solicitor will send you paperwork to sign. This process can take up to a month, depending on which lender you choose. The lender will require you to apply again for the mortgage in your name or with another person if you add another owner.
How do I remove my name from a UK joint mortgage?
There are many ways to get out of a joint loan.
- Ask your partner to buy from you.
- Split the proceeds (if any), and sell the property
- Ask your partner if they are open to taking over the mortgage
- You can sell your share to a third person if your partner agrees.
- Ask your lender if they will cancel the mortgage. Your partner would need proof that they can service the loan.
There are many reasons to get off a mortgage. This could be due to separation, investors going it alone or someone wanting to remove themselves as a guarantor. Regardless, we see mortgage removal as one of the most common equity transfers. Our mortgage experts deal with it every day.
What to do: This process begins with the agreement of the person you wish to leave on your mortgage. Then, the lender will require that the applicant applies to their name. The remaining person asks to remain on their own and not request removal.
This is because it can be a waste of time to make enquiries without input on the matter. First, you need to give the task to them. If you want it to be done quickly, assist them in organising everything (and make sure that they inquire with us).
If they consent, you can enquire on their behalf. Just make sure to add them to your enquiry. The expert will need to talk to them directly. We can also help you if you are looking for another mortgage. You can do it either way.
They can either contact the existing lender or look for a new one to arrange the mortgage. It is always best to do the latter, as it will allow you to compare different deals and factor in repayment penalties. Our brokers can help you with this!
Lenders will evaluate the remaining applicants for credit score/history and income.
This applies to both the current lender and any new lenders. It is considered a new application. The lenders will also need to make sure the property has sufficient equity. Negative equity can cause problems as the lender may lose some security when removing a party.
Once approved, it is up to the solicitors who will handle the paperwork. If they are denied, they will need to determine why (usually credit score or affordability) and then approach another lender specialising in that area.
This is why we ALWAYS recommend talking to a mortgage broker, as they have the experience and knowledge to get approvals for those who have been declined.
Next, there’s the legal work. This is quite simple. The solicitor will need to know that you are leaving the mortgage. They can also send additional paperwork to cover the “transfer of equity”. This will include a signed document to confirm your satisfaction with the numbers. The solicitors will then notify the lender to complete the application.
If you are being purchased, your solicitors may also take your money from the lender.
Some other considerations:
Capital Gains taxes might apply. Capital gains may be required if the property is not your primary residence. Talk to an accountant or a solicitor.
If property investors have signed a personal warranty, they might want to confirm with their lender that the obligations will be voided following the transaction. They were surprised to learn that not all personal guarantees are voided after the transaction. Some secret warranties can survive the removal of mortgage interest and property interest so you may be left with some liability.
Removing an ex from a joint mortgage without refinancing
You don’t have to remortgage to remove an ex-mortgagee from your mortgage. It is possible to transfer equity on existing products, and many lenders allow capital raising for equity transfers.
A lender will conduct affordability and credit checks as part of the mortgage transfer process.
There will also be legal fees and administration costs. Many people buy out a mortgage from their partner to get a chance to review their mortgage.
They also often refinance if they have to pay Early Repayment Charges.
I am on a joint mortgage, and the other person isn’t paying their way
You’re not the only one who’s been left paying a joint mortgage or worrying about how you will pay it. This is a prevalent situation that our mortgage experts deal with daily.
You must do all you can to ensure your mortgage repayments are made.
It doesn’t matter if you “paid your share” in the eyes of the lender or the credit agreement you signed. Each person on a joint mortgage will be responsible and accept liability for the entire payment. Any missed, or partial payments would be recorded on your credit files regardless of who is to blame.
The biggest problem for new lenders has missed payments on mortgages. This will make it more difficult and likely more costly to apply again. It’s not impossible as some lenders will accept late or missed mortgage payments for the past 12 months. Some even allow you to use it for a mortgage broker if you are currently behind.
What you can do: Appeal to the lender directly and ask for an organised and temporary payment holiday, or possibly a switch from interest only, depending on the circumstances. This will give you time to sort things out and won’t adversely impact your credit score (depending upon the lender – please verify this first). ).
There are three choices…
- Sell and Move
- Take care of each other.
- Encourage or assist the other person in fulfilling their mortgage obligations.
You will need to be able to afford to mortgage the property if you plan to purchase them. The typical lending limit is 5x your annual salary before taxes. If you make £50k, the maximum mortgage you can get would be PS250k.
Talk to an expert. Going to your current mortgage lender will limit your options and reduce your chances of getting the desired outcome.
We’ll help you find the right mortgage broker.
You can’t purchase them. Please get this verified by one of our specialist brokers.
Although your lender may have declined, and the broker might not have been able to help, some brokers have the market knowledge, experience and market access that can get approvals for you where others cannot.
If it is a no, you have two options: keep paying the mortgage or sell the property. Or you could face repossession and a massive scar on your credit file for many years.
Mortgage buyouts
It is much easier than you might think. If you have the right advisor, it is possible. We help hundreds of people every year with this process. The legal agreement and getting the mortgage approved are the most important considerations.
Your conveyancer (solicitor) handles the legalities. They just send you and the person buying the mortgage some additional forms to sign. They are completely normal and easy to understand, so there is nothing to be concerned about.
A mortgage can be more complicated. Evidence that…
- Based on your income, you can pay the mortgage on your account.
- The extra borrowing is possible for you.
- The property has enough equity to allow you to add that extra money.
- You have the correct credit score/history.
Your mortgage advisor will answer these questions.
Although it is possible to buy out your current lender, this will limit your options and increase the interest rate. Even if early repayment penalties are attached, it is worth looking at all the available deals to find the best one. Customers often borrow more because they get a better rate. It costs nothing extra each month, so don’t be surprised when this happens.
Your existing lender will need to fund a new deal with different rates and end dates. This can make it a little awkward if your mortgage is due to expire in 12 months. The new mortgage will be due in 2 years.
What to do: Let your mortgage advisor know you are buying someone. They will take care of everything, including calculating how much you can borrow, approving and finding the right solicitor. After all, the paperwork is completed, the solicitors will release funds from your lender to the person you have bought out.
Notification
If all parties are willing to agree, the process could take between 4-8 weeks.
Many other lenders may be able to consider you if you get declined. You can add another person to your mortgage at any point to improve affordability or because you are changing owners.
You can agree on the value and price of the property, but you must wait until your advisor determines your financial capabilities. Although it can be challenging to value the property, you can look online at similar properties (sales of comparable properties in the same area). You can ask an estate agent or surveyor to value the property if you cannot agree.
I would like to transfer my mortgage to a relative
Good news! It is possible to share a mortgage from one person or another. With the assistance of a professional mortgage advisor, it can be simple. You can also transfer a UK mortgage to a friend, relative, or family member.
You can do this through a Transfer of Equity. However, the borrower must meet the lender’s eligibility and affordability requirements.
Often, a mortgage can be transferred to a friend/family member to plan for inheritance tax.
In these cases, it is essential to consult a tax advisor before any agreement is made. Even if the mortgage is still in effect, it’s possible to gift property. However, the outstanding mortgage balance must be paid before the property can be transferred or as part of the transaction.
How to add someone to a mortgage?
You can add your spouse, partner or husband to your mortgage. This is a smart move, especially if there are children involved. However, be aware that your mortgage will still have to be approved. The person you add to your mortgage must pass the expected income and credit checks. They may also need to pay stamp duty.
If you are looking to add someone to your mortgage, there are two options. Either you can add them to an existing agreement via a Transfer of Equity, or you could refinance your mortgage to switch to a joint agreement.
A Transfer of Equity is only available to qualified applicants.
The new borrower must meet with their lender and undergo affordability and eligibility checks. Your lender will verify that they are creditworthy before they become legal owners of a part of the property.
Remortgages are similar to a mortgage. You can either refinance with your existing lender or look for better deals from other providers. Remortgaging has one significant benefit: You could find a better interest rate on a new mortgage, but you should also consider whether you have an early repayment fee with your current deal.
This is where the key lies. Calculating the total cost and potential savings over the long term is essential. If you are required to pay high fees and charges, it is not worth refinancing a product at a lower interest rate.