Change of Party on Mortgage - help!

Just_Peachy

Hi,

My partner wantes to remove his ex from his mortage, she has been moved out of the property for 18 months and he has been paying the mortgage on his own since then.

he has contacted Northern Rock who are going to send out an application for her to be removed, this will cost £175 (but i have read that this fee is added to the mortgage - is this correct?) then they will assess if he can afford to live on his own there. I'm not sure that he will pass this test as the mortgage is currently more than a third of his monthly wage.

The alternative is to put his dad or me on the mortgage. I would be happy to go on the mortgage but i have a personal loan of £9,000 and £5000 owed on a credit card so i am thinking that this would hamper my chances of getting accepted on the mortgage - is this correct?

Also, Northern Rock have told my partner that to remove his ex from the mortgage a solicitor would need to be involved, does anyone know what the solicitor is needed for and how much this service would cost?

I hope all that makes sense - i'm confused myself!!

Thanks

PS forgot to add that the property is in negative equity so there is no need for his ex to be bought out

Conrad

Adding someone to a mortgage is just like buying a property and applying for a new mortgage, so all the usual underwriting is required.

I'm not sure I'd want to be added to a negative equity debt:eek:

Just_Peachy

what about if he was accepted as leaving the mortgage in just his name? what would the solicitor be needed for in removing his ex from the mortgage and how much would the solicitor be likely to charge?

Conrad

To remove someone from a mortgage involves removing them from the property deeds. A solicitor is required to ensure procedures are followed and ALL parties interests are met.

Imagine for example you were on a mortgage and lets say there was £50k equity. You would be damned upset if you were removed from the contract as your right to that £50k would aslo be gone!!!

Just because there is negative equity, in no way negates the need for 'proper process' to be gone through. For all the solicitors know, the part being removed mught have put down the original deposit (for example), and such things need to be checked and not 'guessed'.

Just_Peachy

We are not suggesting that because the property is in negative equity that we will not be going through the 'proper process' i was just wondering what the process is and if anyone had an idea of how much a solicitor is likely to charge for this.

His ex is a desperate to be removed from the mortgage as he is, so both parties want the same thing.

KarenBB

Just give a solicitors a quick call to find out how much they would charge to do a transfer of equity (both parties in agreement), they should be able to give you a figure over the phone.

I'm sure the ex will be delighted to come off the mortgage when it's in negative equity.

If Northern Rock has a quick "how much can I borrow affordability calculator" on their website that would be a quick and easy way to to get an idea if your OH is likely to be able to take on the mortgage.