Keeping good mortgage deal.....

lynchboss

My sister is about to split with her partner. I have offered to take over 25% of her motgage as alone she does not earn enough to cover the loan. She has a good tracker deal. How do we get his name off the mortgage, and mine on (or have some legal agreement the BS will accept) without having to re-mortgage???

Mrs_Bumble

It is called a transfer of equity, your sister will have to approach her existing lender to ask for him to be removed and for you to go onto the mortgage. He has to be in agreement. Your income in conjunction with your sister's has to be sufficient to cover the existing lending or they won't remove the husband.

You do realise that you are taking on responsibility of the mortgage being paid, in the eyes of the lender you would be jointly and serverally responsible for the mortgage payment, meaning that if your sister didn't pay they would expect you to cover the payments. Are you prepared for that?

If the lender does agree then you would need to have to get a solicitor to finish the legal paperwork, transferring the names on the title deeds etc. You would need to have the title deeds, split as tenants in common and get separate legal advice about having a trust deed agreement drawn up etc and for advice on the responsibility of taking on the joint mortgage.