Removing name from joint mortgage

dylanclarke

Hello,

I would like to remove my name from our joint mortgage and have it just in my wifes name. We are currently with Lloyds TSB on there SVR with no tie in period.

Now the reason for doing this is that we have bought a new house and are struggling to sell our own. So, I will need to take out a mortgage for the new house while still having our current one and in the process of trying to sell it.

This would not have been a problem three months ago, however now all the mortgages that allowed you to do this have been withdrawn from the market. So I am thinking of removing my name from the mortgage so it is soley in my wifes name and then the new mortgage will be in mine. My wife can cover the repayments on our current mortgage from the dividend payments from our ltd company as we are equal shareholders.

So, how likely is it that I can just remove my name from our existing mortgage without my wife having to re-apply for a mortgage again?

Rikki

They will only remove your name if your wife has sufficient income to obtain the mortgage in her own right. Its not just about about covering the payments.

silvercar

The title deeds normally need to match the mortgage names, consider the implications of that.

May be easier to get a BTL mortgage or consent to lease on your current home, provided the potential rental income would more than cover the mortgage payments, you could then get a normal residential mortgage on your new home. This plan does require you to come up with a deposit on your new place.

dylanclarke

I have the deposit for the new place, and my wife's income would easily allow her to get the mortgage on the current place. However the only difficulty I see with it, is that I was staff when I took the initial mortgage out 5 years ago and now I'm contract with my wife a 50% shareholder so she recieves a small salary and then dividends so they may insist that they change it to a self cert mortgage.

The reason I do not want to change to a buy to let mortgage is that I want to sell it as soon as possible and not get another mortgage on it with repayment penalties etc.

silvercar

You wouldn't need a self-cert just because the income is salary + dividends. You would need a couple of years of accounts and possibly a letter from your accountant. Depending on the letter a copy of recent tax returns may suffice.

You can get (or at least you used to be able to get) BTL mortgages with no redemption penalties.

dylanclarke

Ok, thanks for the info, so what would be a valid excuse to give to my mortgage company as to why I want to take my name off the mortgage? Do I need one?

getmore4less

Are you sure you need to bother, if your incomes can cover both mortgages, which I think you say they do, if you do one each, then can't you just get another loan based on whats left from you current joint commitments.

Based on affordability and a deposit you should be OK.

Having a backup plan of renting out the place will look better as long as predicted rentals cover the mortgage requirements since if you are struggling to sell you are going to chase the market down if you are not carefull.

Buying before selling is allways a risky move in a falling market.