Will Lenders allow someone other than registered owner to pay the mortgage?

im2020

My wife and I are registered as (equal) owners (tenants in common) for our house with a 48% Loan to Value Woolwich mortgage. I am the sole earner and pay the mortgage, albeit from our joint account.

For a number of reasons I want to transfer the ownership of our house into my wife's sole name while continuing to pay the mortgage.

Before approaching the Woolwich I wondered if anyone can tell me if they're likely to baulk at this and ask us to make a totally new mortgage application?

Thanks in advance for any thoughts.

IM

Thrugelmir

Your lender will decline the application.

As you would have the debt in your name and your wife the asset in hers. So leaves the lender totally exposed in the event of default.

Annisele

I agree with Thrugelmir - the lender will want the asset and the debt in the name of the same person. If it's your wife's asset and your debt, that makes repossession near impossible if you stop paying. However, your wife can't take on a mortgage with no income.

Could you tell us a bit more about what your "number of reasons" are? We might be able to suggest another solution.

On the face of it, I'm puzzled by your plan. If you are continuing to live in the property and pay the mortgage, then you'll still have a beneficial interest in it - so if you're trying to protect the property from creditors, transferring to your wife won't help. If you're trying to protect the property from something like future care home fees, the rules on deprivation of assets will likely bite you.

Dave_Ham

To get a straight answer, you sometimes need to ask a straight question.

I think the other 2 responses have missed the point (or maybe I have) but you want to put the deeds and mortgage in your Wifes name, but still pay the mortgage from your account.

Whilst the Woolwich may be a tad cautious, they are likely to consider it but it will be a new application. Therefore your Wife will need to have a sufficient credit score and importantly be able to afford the repayments on her own.

If you have the direct debit setup elsewhere this may or may not be an issue, although you could always send the money to Wife first.

This does sound like a half baked idea though, as if it is the HMRC, or a creditor or anything you are trying to protect this will be absolutely visibile what you are doing and therefore they will just revoke it and put it back in place.

Get some decent advice if I were you, one where you can lay out your exact circumstances and what you are looking to achieve.

Wh05apk

I don't think Woolwich will allow the OP to be removed, if he is still living in the property, as he will have residency rights which could over-ride their rights to repossess.

im2020

Reasoning - I simply want to provide peace of mind for a wife who worries. It's not going to happen, but if we ever broke up she would have the house.

The direct debit is set up on our joint account and would stay that way.

Can I be a mortgage guarantor?

Dave_Ham

Seems a tad extreme, what happens if anything happens to your Wife..?

Agree Woolwich may still not like it, but would have thought they would just request the usual form to be signed for over 18 with no interest residing at property (family member)

May be easier to ask the Woolwich as I still think it is possible, dealbreaker may be your Wifes ability to afford the mortgage on her own (on paper)

zzzLazyDaisy

im2020 wrote: »

Reasoning - I simply want to provide peace of mind for a wife who worries. It's not going to happen, but if we ever broke up she would have the house.

It isn't as simple as that anyway.

In a divorce all matrimonial assets fall into the pot, regardless of whose name they are in. So putting the house into your wife's sole name would not stop you taking half in a divorce if you chose to go for it.

As a by the by... is there a reason why the house is held as tenants in common? Joint tenants would give you both more security if one of you dies, as the house would pass automatically to the other, and does not fall under any will or intestacy rules. As things stand either of you could gift their share of the house to someone else on death and that could get messy.

Mrs_Arcanum

im2020 wrote: »

Reasoning - I simply want to provide peace of mind for a wife who worries. It's not going to happen, but if we ever broke up she would have the house.

The direct debit is set up on our joint account and would stay that way.

Can I be a mortgage guarantor?

A local land owning millionaire did this (in his case to avoid taxes) and put everything in his wife's name. Unfortunately, she pre-deceased him leaving everything to their son.

im2020

My mistake - we are joint tenants not tenants in common.

Since all of your helpful responses suggest that at the very least we would have to make a new mortgage application it looks like I'm going to have to think again because our current deal will never be repeated and I don't want to lose it.

I'm still curious about the role of a "Mortgage Guarantor", though.

Mrs_Arcanum

im2020 wrote: »

My mistake - we are joint tenants not tenants in common.

Since all of your helpful responses suggest that at the very least we would have to make a new mortgage application it looks like I'm going to have to think again because our current deal will never be repeated and I don't want to lose it.

I'm still curious about the role of a "Mortgage Guarantor", though.

Surely you have insurance that will pay off the mortgage if you die? This would then leave the house free & clear to your wife provided you "willed" it so.