Removal of partner from mortgage

emptyglass

I have a bit of a discussion going on, on the Loan thread about raising money to pay off my ex partner.. My solicitor earlier this week suggested my partner can't be removed from the mortgage and deeds until the fixed rate deal finishes next December otherwise I have broken the contract and will have to pay the early payment charges. As I need to raise £75000 to pay her off a broker has told me I must remove her from the mortgage so I can raise funds against the house in my name. The house is worth £180000 with £13000 outstanding @ 5% early payment charges on this. Any advice will be most helpful.

Emmzi

"it depends"

check the loan agreement. and call the bank.
I can 'port' my fixed rate mortgage. But I don't know if i can port it in just my name.

Mrs_Bumble

What sort of income do you have?

Do you have any existing credit committments?

Any adverse credit history?

Who is the current lender

Is she happy to come off the mortgage?

emptyglass

Mrs Bumble

Enough income to cover the £75000 extra.

No other debt.

Good credit rating.

Nationwide.

As soon as possibly, she never contributed anyway.

_Andy_

What is your income though? you may feel it is enough but it's more relevant what the lender will think.

Mrs_Bumble

Then as I see it you have 2 options:

1) Approach Nationwide and ask to a) transfer existing mortgage into your name only (this shouldn't incure the ERC as you are not repaying it just removing but do double check - they will charge a fee for this b) additional borrowing application for the £75K you need to buy partner out, paying whatever arrangement fee for the additional borrowing product - their will be a solicitor fee for the transfer of equity part of this transaction - removing partners name from deeds

2) Remortgage away totally from Nationwide pay the ERC which is what £650 plus the exit fee for leaving Nationwide - this route will incur the normal remortgage costs plus the transfer of equity element of the legal fees, whatever application fee/valuation fee etc

Not sure at this point why the broker told you that you had to get it in your name first?? Were they an independent, whole of market broker?

Depends on what deals Nationwide would give you for the further advance as to which route will be most cost effective, but you have both options, speak to a good, whole of market broker and cost both options.

emptyglass

Thanks Mrs Bumble.
I will contact the Nationwide shortly. The broker rang me after I asked moneysupermarket.com the best option to raise the money.

Mrs_Bumble

No worries, moneysupermarket sell your details onto mortgage brokers who buy leads.

Ask around friends and family to see if they can recommend a good whole of market, independent broker

Good luck, let me know how it goes!

jingle68

ive just removed my partner from my mortgage after we split up earlier this year, my mortgage is on a 2 year deal until november & it made no difference.
I was charged £160 + legal fee's to do this.

ring your mortgage co & ask them.

emptyglass

over the phone nationwide said there isnt an issue removing her from the mortgage and borrowing enough to pay her off, so hope they dont change their minds when i see them in the branch.

Mrs_Bumble

As long as your income tallies and no adverse credit, no reason for them to change their mind in branch