Advice on Transfer of equity/freehold & Mortgage

jamez79

Hi,

Background - I purchased a house 2.5 years ago and although I could afford the repayments, the bank wouldn't lend me enough based on my income. So in order to get the mortgage for the property, my brother agreed to put his name on it with me. I have since then paid for everything (legal costs, monthly payments etc etc) and my brother still lives at home with our parents. - He is now looking to buy his own place, but is on my mortgage.

I have recently put in to buy the freehold for my house which is currenlty being finalised. It's obviously in both our names as is the mortgage. I then plan to do a transfer of equity to get the mortgage in my name alone leaving my brother to get his own place. He doesn't want any payment, just his name removing. He'll sign to say he's had legal advice etc.

If he goes to get a mortgage on a property he likes and has an offer accepted on, whilst still attached to my mortgage, will this hamper him? There is nothing to say he has a mortgage, ie no payments, cash or otherwise, it's just his name is on my mortgage. Would a credit check pick up on this? Would he still have a first time buyer status? Can i put in for a transfer of equity whilst the freehold is still going through?

Thanks in advance.

Robert_Sterling

I think that if your brother's name is on the mortgage then he is "jointly and severally liable" for the mortgage payments. So were I him I would not start applying for a mortgage until I had freed myself from that liability.