tranfering mortgage to partner

animox

Hi

I have a joint mortgage with my partner on our home and we are splitting up.
I would like to sign the outstanding mortgage and ownership to her.

Would this mean she would have to apply for the mortgage on her own?
As her earnings are minimal and I'm afraid if this happens it will mean her selling and downsizing.

mortgage is with hsbc on 0.5 over base another reason to keep the same mortage

Any help appreciated

beecher2

Yes, she'd have to re-apply for the mortgage and salary multiples would have to stack up.

supasaver78

Hi I'm currently starting this process too and i'm keeping the hse. You will need to speak to HSBC first to see if they are happy for her to keep the hse based on her credit score and salary/affordability. They call it a Transfer of equity. It will also depend on the current LTV, if your property value has gone down like mine then they will require a lump sum to bring LTV down to what ever their lending limit is. Bank will charge for this ans solictor fees also needed to change land registry.

I'm with Halifax on the SVR of 3.5% and they are allowing me to keep the same product but HSBC may be different.

Hope that helps.

Thrugelmir

animox wrote: »

Hi

I have a joint mortgage with my partner on our home and we are splitting up.
I would like to sign the outstanding mortgage and ownership to her.

Is the property in negative equity?

animox

Not sure about all the acronyms but the house is worth 300K and loans are about 70K

Thanks for the advice

supasaver78

LTV = loan to value = how much you're lending compared the value of property.
if your mortgage is 70k and hse value is 300k then LTV is 24% which is very low and considered less risky but they will also look at her affordabilty to keep up with what ever the repayments are. First port of call is the bank to see if it is a viable option.

getmore4less

animox wrote: »

Not sure about all the acronyms but the house is worth 300K and loans are about 70K

Thanks for the advice

Whats happening to the equity?

koexelek

supasaver78 wrote: »

LTV = loan to value = how much you're lending compared the value of property.
if your mortgage is 70k and hse value is 300k then LTV is 24% which is very low and considered less risky but they will also look at her affordabilty to keep up with what ever the repayments are. First port of call is the bank to see if it is a viable option.

It is indeed good loan to value, but virtually all lenders will insist that the loan is still within their standard income multiples.
On a £70k loan , this will normally mean an income of between £17 and £20k will be needed