Mortgage/deeds - adding my name

Milsey-Girl

I wonder if anyone has any knowledge that could help with a query I have.

I met my current husband when I was going through a dreadful divorce with my ex which included the sale of a house I jointly owned with him which had negative equity (it was 10 years ago). My ex dragged his heels over the payment of the negative equity and because he refused to agree with the payment plans the building society offered, I went ahead with re-paying my half (approx £5,000 spread over 4 yrs) whilst they chased him for his part. I still don't know to this day whether he repaid any. The building society warned me that because it was a joint debt, it could give me a bad credit rating. Although, at the time, I didn't check (too much going on), I was refused a storecard about 2 years later with no reason given. However, I now know that I have a good credit rating.

A year later I moved into my then new boyfriend's (now husband) house. A year after that I received some compensation for injuries I received from a serious accident and was able to settle the outstanding balance from the negative equity 2 years early.

4 years ago, having added 2 children to our family, we decided to move. We quickly found first-time buyers for the house, and found the perfect house for ourselves. Our first-time buyers needed a quick sale and our vendors also needed a quick sale as they were buying a brand new house. We had to arrange a mortgage very quickly and, aware of my previous history made the decision to get the mortgage in my husband's name only as my history could have slowed down the process. I seem to remember the Mortgage Adviser saying that if my name were to be added at a later date it could cost in the region of £9,000 (the house cost £300,000) but I may have misunderstood this? We were able to put down a large deposit on the new house due to the profit on the old house and the money from the compensation.

How easy and what is the process of adding my name to the mortgage and the deeds? The house is now worth approx £325,000 and the outstanding mortgage is £135,000. We are happily married and have 2 children and hope to stay that way but to safeguard my interests I wonder whether I should do this? My husband is happy for me to add my name although doesn't see it as a problem at all that my name is not on the mortgage & deeds. He is the main breadwinner (earns £37k pa) although I do work part-time (I earn £16k).

Any help would be appreciated and I apologise for the long post!

AR8

Hi there

Re your post. Firstly get your husband to write to the building society to now add you to the mortgage now that it is up and running, will no doubt be an admin charge. Alternatively you can go on the internet to the Land registry and with your husbands consent have what is know as a "charge against the property" ie 50/50 or 60/40,whatever you choose to agree on; Again there will be a cost but it gives the comfort that the property cannot be sold without you receiving the legally agreed percentage if anything goes wrong. It is cheaper to do the second option yourself than via a solicitor which would be around £400 and frankly a waste when with a little initiative you will be able to do it yourself. Good luck

minimike2

its not as easy as that....the B.S will still want to asses you as if you were making a new mortgage application - they wont just add you on.

Is the mortgage currently in a tie-in? Best bet is to wait until its out of a tie in if its in one, then speak to a broker about a new joint mortgage (taking a copy of your credit file with you). I dont believe stamp duty would be payable on the transfer of equity as you are married, but there will be some solicitors costs (typically £150-£200). The question is that if your credit file does hold this adverse information, you wont get high street mortgage rates.

Milsey-Girl

Thanks for your replies.

The mortgage is on a fixed rate until Sept 09 so perhaps we'll look at getting a joint mortgage together then so long as the solicitors/arrangement fees aren't too excessive.

How long will the issue with the previous mortgage be on my credit file for?