Name being added to mortgage

PinkPeonies

Hi everybody,

I'll try to make this as clear as possible but fee free to ask for clarification.

I'm a full-time student who will finish this May and am obviously going to try and secure full-time work (not self-employment etc.)

I live with my fiance who owns the house (mortgaged of about 4 1/2 years) we live in and he is the sole name on the mortgage. We spoke about putting my name on the mortgage a while ago but I dismissed it as I was a full-time student with an annual income of under £3,000 lol.

My question is, assuming I gain full-time employment at (what I deem to be quite a low income, no offence to anybody) at around £13,000 p/a how long do you think I would have to work before it could be realistic to add my name on. I realise the fees for this alone will be nearing £1,000.

I know there are so many risk factors when they calculate the mortgage but he has an impeccable credit history, a very healthy amount of savings etc. I'm beginning to think if they've approved the mortgage for him adding me shouldn't be a problem as it's deemed affordable to him solely.

Thanks in advance

kingstreet

If his income is sufficient, you don't have to be earning anything.

The current borrower should approach the lender for a transfer of equity to include the new party. If the current sole borrower's income is sufficient to maintain affordability, the lender will permit the change even if the new borrower isn't working, or has a low income.

At that point, the matter will be passed to a solicitor for the transfer of equity to be completed. Once both parties have given their agreement, the new borrower is added to the mortgage and the deeds to the property.

Check the HMRC site for stamp duty implications, if any.

http://www.hmrc.gov.uk/sdlt/calculate/transfer-ownership.htm

A transfer of equity typically costs between £400 and £600.

PinkPeonies

Thanks ever so much for the quick reply. That is what my partner thought and it seems like common sense but I didn't want to embarrass ourselves asking for something which is completely ridiculous.

We're also getting married next year so am I correct in assuming we wouldn't be liable for any stamp duty prices as it would become half 'mine' legally. Also we believe the house is in negative equity having bought it for £124,000 and houses very similar and in our area are going for around £120,000.

Thanks again seems very positive!

kingstreet

The property value is below the stamp duty minimum, so that's not going to be a problem for you either way.

PinkPeonies

Thank-you that's what I thought having read around a bit more (including the site you recommended). Good news all round, thanks again

Simon_gloster

It would need approving from an underwriter.

A lender would prefer 2 of you on the mortgage so if repossessed they could chase both of you.

Are you with a high street or sub prime lender? Some may ask to put some money do so its not in negative equity.

PinkPeonies

Hahah yes I bet they would! We are with Nationwide, do you have any idea whether they would expect a payment and how it's worked out? I'd assume by % of house value or % of negative equity; surely it wouldn't have to be the whole amount of negative equity as some people run into £10,000s and they couldn't expect that? I hope they don't expect too much as it's only just negative, thankfully, although we're going to get a few free valuations soon. Thanks for replying

star4876

my solicitor has quoted £500 to progress a transfer of equity, and the bank may charge a reapplication fee to assess your suitability to join the mortgage, I know Santander charge £140 for this, so that should give you some idea of the costs involved.

The application should be OK depending on both your credit histories etc. Assuming you haven't got any defaults or CCJs on your file then you're bringing an extra income to the table, so I can't see his lender would object.

Good luck!

PinkPeonies

No nothing of the sort thankfully. Yes I thought there might be some kind of suitability questionnaire/check which they would charge for which is why I've budgeted nearing £1,000.

The main reason we're thinking of doing this is because in the next 1/2 years we need to move house and were thinking it will be easier to get a mortgage if I were named on this one. I haven't owned property before but as he isn't a FTB we wouldn't be eligible for the stamp duty discount etc. Should be meeting Nationwide soon and then having the house valued too.

Lol I am hoping to get full time work and like most graduates I am hoping for something good but even F/T minimum wage should be enough (for the mortgage purposes anyway).

Thanks for all the replies and advice