Re-mortgage?

MrsTinks

Riiiiiight

Time is about up for the fixed period that OH was locked in for on his motgage after first buying the house. Currently the house is in his name and when we re-mortgage we want to do it in both our names, would this make it a re-mortgage or a new mortgage because the deeds would need to change to show both our names...

Is there any advantages/disadvantages to keeping it in just his name or changing it to joint?

Thanks gang!!!!

AndrewSmith

Hi,

The deeds will need to be changed anyway if you are changing either the amount, the lender or both.

The process of adding (or removing) a party from the mortgage is called Transfer of Equity and can be carried out by the solicitor at the time of remortgage.

Advantages ;

In the eyes of English Law you would then be deemed as joint owners in equal proportions.


Disadvantages;

Will create a financial association between you thus any adverse credit now or in the future may affect the other partie's ability to obtain credit.

You both become jointly and severably liable for the whole debt, if he up and leaves, you are responsible for the whole mortgage and vice versa.


There are many other issues surrounding this and, to be honest, it is something that you should take profesional legal advice on.

No-one on here will be able to give you the correct answers for your own situation as it has far reaching ramifications.

A brief meeting with a solicitor will offer all the information you need to make the choice from an informed point of view.

Andy

payless

If mortgage is over £250K there may be stamp duty to pay