removing a name from a mortgage

anniebea

If two people have a joint mortgage and one wants to get thier name taken off the mortgage what legal steps do they have to go through. The person who will keep the mortgage will agree to them taking thier name off.... I presume there are land registry title etc that need to be changed and it means engaging a solicitor but just looking for some overall pointers of what needs to happen. Would the person who is going to keep the mortgage have to effectively remortgage?

ninky_2

the person taking over the mortgage would have to be able to afford it on their income alone otherwise no lender is going to agree. income multiples for solo mortgagees are sometimes lower than for joint applicant. the person being taken off the mortgage would have to agree.

anniebea

I think someone is going to have to stand up as a guarantor as singe income wont hold up. Could one name be replaced by another on the mortgage?

Conrad

Yes one name can replace another as long as the incommer fits lender criteria - one plank of which is that they will RESIDE there and that they can cover any existing mortgage and the new one, so for most cases it falls down on these and other points.

As for a guarantor, they don't have to reside, but only a couple of lenders can consider these such as C&G and the rules are very strict and for the highest quality cases only - again the guarantor will need to demonstrate affordability for thier existing mortgage and debts AND the new mortgage. Guarantors will usually have to be parents.

A guarantor needs to usualy only be a 'little extra help' as it were, and not be the main income provider where the original applicant remaining has only a small salary to contribute.

anniebea

Could a parent pay half the outstanding mortage and have thier name added to the title deed, leaving the person with the mortgage with a mortgage for only half the value of the property.

The names on the title deed and the mortgage would be different so that might be a problem.