Transfer of Equity confusion

Skintfoodie

Hi all

My partner and I have been going through the process to do a transfer of equity to add my name to his mortgage, and we're then moving mortgage products with the same company and getting a further advance for home improvements.

The T.O.E is taking ages and I'm getting very worried we will lose our mortgage deal and have to go back to the Halifax to re-arrange. I've also just been sent paperwork from our solicitor saying she needs a copy of the Buildings Insurance and my name must be on it - but how can my name be added to it before I'm added to the mortgage?

Has anyone else had this problem?

Also she's requested our bank details, but we aren't redeeming the mortgage to move it elsewhere, we're doing a product transfer, so I can't understand what money she thinks is being paid over.

She's terrible at replying to my emails asking questions, sends letters I don't understand because nothing is explained in them and then is never around when I ring!

Very frustrating

Lilla

Hello,

Can I check something please? If I understand correctly, your partner was the sole owner of the property with the mortgage in his name, and now you will become a co-owner with the mortgage also shared. You will then remortgage and take out a further loan with the same lender (Halifax) you are currently with. Is this correct?

If so, could I please clarify why you're worried that you'd lose your mortgage deal? Is there an agreement in principle that's expiring or you're worried that the interest rate may change?

The solicitor is asking for your bank details as they have to check what bank details will be used for the direct debit after your name is added.

Buildings insurance - a quote can be obtained with a future start date reflecting both of your names, it's not a problem. As it is a condition of every lender that buildings insurance is in place in the name of all mortgage applicants, it is normal that the solicitor asks you for proof. When I arrange buildings insurance for clients, it is just on file until the remortgage completes (or new mortgage exchanges), so I can then place the insurance on risk.

However, if you'd like to stick to your current insurer, you may contact them, explain the situation and ask for a letter confirming that you'll be added to the insurance once you are added to the mortgage. You can then send this letter and the terms & conditions of the insurance to the solicitor.

I deal with Halifax a lot and normally I get good service from them, so if you needed any help, please feel free to contact me.

Senior_Paper_Monitor

You might good service from Halifax but I'd love to know if you get it from their 'free solicitors' (and if so how ??) - which is where the problem appears to be.

Skintfoodie

Lilla wrote: »

Hello,

Can I check something please? If I understand correctly, your partner was the sole owner of the property with the mortgage in his name, and now you will become a co-owner with the mortgage also shared. You will then remortgage and take out a further loan with the same lender (Halifax) you are currently with. Is this correct?

If so, could I please clarify why you're worried that you'd lose your mortgage deal? Is there an agreement in principle that's expiring or you're worried that the interest rate may change?

The solicitor is asking for your bank details as they have to check what bank details will be used for the direct debit after your name is added.

Buildings insurance - a quote can be obtained with a future start date reflecting both of your names, it's not a problem. As it is a condition of every lender that buildings insurance is in place in the name of all mortgage applicants, it is normal that the solicitor asks you for proof. When I arrange buildings insurance for clients, it is just on file until the remortgage completes (or new mortgage exchanges), so I can then place the insurance on risk.

However, if you'd like to stick to your current insurer, you may contact them, explain the situation and ask for a letter confirming that you'll be added to the insurance once you are added to the mortgage. You can then send this letter and the terms & conditions of the insurance to the solicitor.

I deal with Halifax a lot and normally I get good service from them, so if you needed any help, please feel free to contact me.

I'm concerned about the losing the product we're moving onto - will the Halifax hold it until the transfer of equity is complete?

Would you normally tell clients about this insurance thing? This was the first I'd heard about it in the letter, and it didn't explain it at all - feel a bit better after seeing that we can get a letter saying I'll be added.

The letter states the bank details are to transfer the whole value of the house to us? V confusing.

Skintfoodie

Senior_Paper_Monitor wrote: »

You might good service from Halifax but I'd love to know if you get it from their 'free solicitors' (and if so how ??) - which is where the problem appears to be.

We weren't offered their free solicitors, but the mortgage adviser told us it would cost £250 for the transfer of equity - it's actually costing £450! So I was shocked at the cost from the solicitor.

Senior_Paper_Monitor

I stand corrected

£250 is about right for a ToE - and £200 for a remortgage is pretty good. But the service appears a little short whetehr paid (albeit cheap) or free.

Lilla

Skintfoodie, thank you for your clarifications. I tend to agree with Senior Paper Monitor that £450 is a very good price, even if it came as a shock, as it wasn't explained to you in the beginning.

Rates are changing all the time. Do I understand correctly that you applied via a broker for remortgage in joint names subject to the ToE completed first?

Yes, I normally discuss the insurance arrangements with clients, as mortgages are a big commitment and buildings insurance is the only mandatory insurance, so it has to be right. However, please note that insurers are different and not all of them are co-operative, but it was done by the insurer of a ToE client, so I know it can be done.

Indeed the letter re the bank details sounds confusing - what is the exact phrasing?

Skintfoodie

Thanks for the help with this, I emailed her, then rang her and we got to the bottom of it. She seemed to think that we were redeeming the mortgage along with Transfer of Equity and that the whole proceeds would be paid to sols and then out to us, less their fees. That's not what was happening, the T.O.E is going through, then the mortgage product transfer, then the further advance being applied. The buildings insurance we were able to just ring up and they faxed the necessary to her. So I was worrying over nothing! Just wish she'd mentioned the buildings insurance beforehand so we knew it was coming!