Removing a name from a mortgage agreement?

MickMun

Hi all, hope someone can help and offer a bit of advice.

Had a mortgage for about 1.5 years which is currently in 2 names, 50/50 split on the house. However due to changing circumstances I am now looking to change the house to solely in my own name and 100% ownership. However i don't know much about the process.

Does this require an entirely new mortgage? My main concern is that although I can financially afford the repayments myself, I don't think my salary is classed as high enough to afford a mortgage of this level by the banks calculations.
If unable to change to a single salary, is it possible to put down another large deposit to bring the total mortgage cost within the range deemed acceptable by my salary?
Any other concerns or problems that I will likely encounter?

Thanks in advance.

Thrugelmir

You need to be able to fund the mortgage in your own right. This would be a new application.

So would need to inject the equity required to achieve this.

meer53

The other person on the mortgage will also have to agree to give up their share of any equity which you may have in the property, are they willing to do this ? It will be a new mortgage agreement and subject to affordability.

MickMun

The other person on the mortgage is willing to be removed and as far as i know there has been little change in the value of the house since we purchased it.
The mortgage that we are currently on is fixed for several years, will this require payment to end it early/change mortgage?

kingstreet

You need to approach your lender for a transfer of equity.

This involves the lender removing one party from the current mortgage, subject to the other being able to afford the mortgage alone.

Once the lender has agreed the change, the matter is passed to a solicitor for the change of ownership to be effected.

Typically, a transfer of equity costs in the region of £400 to £600.

opinions4u

Ask the lender informally if they would be likely to agree to the change of ownership. This will avoid paying a needless administration fee.

If the answer is no, which is likely if your income is insufficient, you're probably stumped.

What income do you have?

How much is the debt?

What's the property worth?

MickMun

We purchased the house for £83,500 and paid a 10% deposit.
Right now I think the remaining mortgage is approximately £73k and I earn 17.5k per annum (tax free sum however as it is a phd stipend)

slyoldfox

on a similiar vain, my now wife was given sole ownership (deeds only in her name) on the house she bought with her ex husband, NR and now NRAM have both refused to remove his name from the mortgage . He is untracable and my now wife had been paying the mortgage on her own for the last 6 years but still they wont remove his name. We wanted to avoid the expense of re mortgaging specially as my wife still has lingering credit issues as her ex had taken out various dodgy small loans etc but would dearly love to tell NRAM where to go as they have been no help whatsoever

Thrugelmir

slyoldfox wrote: »

but would dearly love to tell NRAM where to go as they have been no help whatsoever

Not their problem. Its your wife's.

slyoldfox

Wow that was constructive. Glad i joined. :j

Thrugelmir

slyoldfox wrote: »

Wow that was constructive. Glad i joined. :j

Its fact. Unfortunate if its not people want to hear.

There's plenty of give advice on the forum. Ultimately people have to help themselves as well. Not expect easy answers to difficult situations.