Taking a name of the mortgage, how easy?

realfun

Me and my bro took out a joint mortgage with NatWest in Apr 2010. Since then we have making repayment without any delays. When we applied I was studying and working part time however my older bro was working full time.

Now that I am working full time for the last 5 months on a good salary with a a bit of saving, me and my bro decided to take my name of the mortgage and apply for mortgage on my own on a new property.

How easy is to do the paper work, and from your experience would the lender allow this?

Thanks,

Senior_Paper_Monitor

If your brother qualifies under the lender's current criteria to have the mortgage on his own then it should be allowed (it is totally at lender's discretion) and is fairly simple - probably about £500 in costs (mainly solicitor - which will be compulsory)

realfun

Senior_Paper_Monitor wrote: »

If your brother qualifies under the lender's current criteria to have the mortgage on his own then it should be allowed (it is totally at lender's discretion) and is fairly simple - probably about £500 in costs (mainly solicitor - which will be compulsory)

Thanks for the prompt reply, from you knowledge do you have any inkling on what could be the lenders criteria?

Senior_Paper_Monitor

Depending upon his status - Natwest are amongst the most generous of lenders in terms of income multiples (up to 4.9 times single income - from memory, but have to allow for any financial commitments - credit cards, loans etc - to be deducted).

LTV, property type, credit status etc all come into the equation - he will just have to ask them.

realfun

Just spoken to my lender and they said they can allow 90% of the mortgage to be transferred to a single person depending on income assessment.

I forgot to ask them what kind of proof they would want to see. Can anyone confirm what they are likely to ask?

Cheers

Caz3121

They will do a valuation to be able to calculate the LTV (although this may come out a PC rather than a visit)
They will then want your brother to fill in an application for a mortgage/provide payslips etc?

realfun

Thanks.

Due to my brother away on business, I have few more questions I need to ask if that's ok.

The only issue re payslips is my older brothers payslips are still being posted to our parents house except his bank statements. Will this cause any problems or are they more concered about the name and income?

Also, would they ask for the most 3 recent payslips incl p60 in originals or can photocopies be sent instead?
Also, what other proofs could they ask for bank statements, utility bills, letters etc.

Thanks,

catieeb06

Shouldn't do- a lender may question it but as long as he has a reasonable answer.

What does his license/bank statements say?

realfun

To make everything a smooth process, would you recommend to change address with the HR people so the payslips are sent to the correct address?

Not sure about his licence but his bank statements x2 are sent to the new house.

Would the bank ask for original or photocopies of documents?

catieeb06

Well at most it might put half a days delay on things so I wouldn't worry about it too much.

Best thing to do is contact the lender and see what they suggest.

realfun

Thanks,

Just looking at some deals on the Natwest website for exisiting customers with mortgages.

It askes me "What type of borrower are you?", my current deal expires 31st March 2012 and want to renew a deal with the same bank. So that does that mean I am "remortgaging" or "exisitng mortgage customer(changing deal)?

Please can you help, this is our first renewal process with the mortgage company.

Thanks.