Mortgage Advice

kazybaby0141

Hi there, I have recently rid myself of bad debt after six years, My partner has a mortgage,& I am on the mortgage life insurance.
As we both help pay the mortgage, but it is in my partners name, because of my bad debt.

Can I be added to the mortgage now, as I am debt free, Some advice would be appreciated, Thanks

kingstreet

Ask the lender about a transfer of equity to add you to the mortgage and the deeds. The usual cost is around £400 to £600 in total.

You may wish to combine it with a remortgage for another new mortgage product as this may reduce the cost a little.

kazybaby0141

Many Thanks, would the banks do this, or should I contact a solicitors, And does the £600 have to be paid instantly, or can it be added to the mortgage, Regards

kingstreet

If you wish to be added to the current mortgage, the first action would be to contact the existing lender. Once they are happy to add you, they will ask you or a solicitor you want to handle the transfer of equity.

If you decide to remortgage elsewhere, the lender will appoint a solicitor for you, with you picking up the tab for the transfer of equity bit.

A fee may be payable to the lender for administering the transfer with the solicitors costs payable at the end.

If you want to add the fees to the loan you simply apply for slightly more money than you need to repay the existing mortgage or if staying with the same lender, ask them if you can increase the mortgage slightly.

Please think carefully about adding fees to the mortgage. They will attract interest until the end of the mortgage term, or until you pay them off, if earlier. This can add unnecessary costs to your total mortgage bill.