Equity Transfer

blondy222

My husband and I are separating I am goiing to buy the house from him with my partner. I have seen a mortgage advisor to see what mortgage we can get which comes out pretty good.

I need to get another mortgage quote so now have to go to my current lender to discuss Equity transfer to see if it will be better to stick with them and transfer names. The only thing I dont understand is will the current lender just transfer names on the outstanding mortgage and ask me to take out another mortgage for the sum to pay off my husband (half the equity in the house) or will they sort out a new mortgage to cover the whole cost for myself and partner?

Hope someone can help;)

opinions4u

If you are staying with your current lender, they can transfer the names of the mortgage over to you and your partner.

This is a legal process, so you will also need to employ a solicitor.

I'd estimate fees of around £200 for the lender and £400 for the solicitor - you might see some change from those figures!

blondy222

will they give me my partner and I a whole new mortgage?

Trying_to_be_good

Are you wanting to take on the whole mortgage yourself? That could be just a new advance of the half-equity to buy out your ex.

If you can't/don't want to take on the whole mortgage yourself, it could well be a totally new loan. That could include paying any Early Repayment Charges on the existing loan - which would reduce the equity in the property and potentially reduce the amount due to your ex.

Is the current loan's interest rate worth keeping? This will influence your choice of new loan.