Advise on Mortgage

CRNeo

I took out a mortgage with my dad a number of years ago to help my family buy their house, he wouldn't have been able to get the mortgage without me.

The idea was that it would only be a temporary solution ideally... now I have just got married and my wife and I would really like to buy a house of our own in the next few years.

As my name is still on the mortgage with my dad for my families house how does this affect things and what options do I have for getting off the mortgage so I can apply for a new mortgage in mine and my wifes name?

Thanks

GMS

The mortgage you have at present will be taken as a credit commitment for affordability purposes for the new mortgage. Depending upon the calculation this could stop/restrict a new mortgage.

To come off the current one your Dad would be able to service the mortgage on his own which you say he couldn't do previously. Other than that another person would need to join the mortgage with the permission of the lender.

CRNeo

What is the likelihood of the lender allowing another person to join the mortgage in my place?

GMS

Depends on circumstances. It would be down to income, credit history, credit commitments, etc

Best to speak to the lender and see best way forward

Senior_Paper_Monitor

If they (+ dad) meet the criteria should be no problem.

A few bob in equity transfer fees coming someone's way but no basic problem.

I would suggest getting abroker to match all three (four?) parties' circumstances against criteriua and coming up with one plan for all.

CRNeo

Not wishing to sound stupid here but would this involve a re-mortgage or just a change in the existing one so therefore not changing any details apart from the names on the mortgage?

GMS

CRNeo wrote: »

Not wishing to sound stupid here but would this involve a re-mortgage or just a change in the existing one so therefore not changing any details apart from the names on the mortgage?

Adding or deleting somebody from a mortgage is a transfer of equity which requires the lender to underwrite the proposed new borrower, and solicitors to complete legal formalities.

Not just a case of adding a name.