Transfer Of Equity - How to get my brother off my mortgage!

bruce-1980

Hi

I've been going round in circles for months now trying to get my brothers name off my mortgage but short of selling the house I dont know what else I can do!

I purchased the house about 10 years ago but fell just short of the affordability so my brother kindly came in on it with me purely to make up the figures. He's never actually lived there or paid anything towards the house.

Now he wants to get his own mortgage and needs to come off mine! Only problem is I've failed the affordability and have been told he'll have to stay on it! Unfortunately, that's not an option!

What's the score here? Surely they can't force him to stay on a mortgage he doesn't want and if he really wanted he could have his name removed? But if it is possible for him to 'forcibly' remove himself from the mortgage, what would the repercussions be for me?

Any advice from somebody in the know would be much appreciated!

Thanks!

Dave_Ham

You are attacking this the wrong way - in my opinion.

You and your Brother committed to buying a property with a mortgage from the bank over x years. The rest is pretty much irrelevant.

Assuming you have tried to remortgage without him, the only 2 ways for him to be removed are for you to sell the property or for him to take you to court to force the sale.

So lets look at whether you are close to being able to afford in your own right, if this means you lose a really good base rate tracker or SVR deal then unfortunately so be it.

An idea of mortgage value, property value and your income would be useful to determine this.

holly_hobby

bruce-1980 wrote: »

What's the score here? Surely they can't force him to stay on a mortgage he doesn't want and if he really wanted he could have his name removed? But if it is possible for him to 'forcibly' remove himself from the mortgage, what would the repercussions be for me?

Removal of your brother from your mge (transfer of equity/TOE), is only by the express permission of the lender, and only if they are satisfied that you can service the mge on your own income.

If they have determined that against their critria you can't, then unfortunately its tough your brother can not be released by them.

You could seek to remortgage to an alternative lender, whom may have more generous affordability criteria, and at the same time effect the TOE re your brother.

However, if your sole income isn't sufficient to meet any lenders affordability criteria, then there is only 1 solution, and that is to sell the property, either via your own co-operation, or bia your brother going through the courts and the court instructing sale .... either way if your income is too low to svc the mge, the property will have to be sold in order to release your brothers name from the mge commitment.

Hope this helps, even if not music to your ears !!

Holly

bruce-1980

Sell it is then! Cheers for the advice! :beer:

foxwales

I don't really see an issue unless your brother has poor finances.

If your mortgage has been paid on time and you have had it for 10 years, then there should be sufficient equity and payment history to satisfy mortgage lenders for your brothers mortgage application as you are financially linked by the mortgage.

If your brother has a deposit and good credit history and has good affordability criteria, then there is no reason why he cannot be named on another mortgage, providing he has the ability to meet all legal financial comittments on both products.

Instead of you being forced into the sale of your home, get your brother to speak to an independent mortgage broker who can advise on the likelihood of him achieving a second mortgage.

You will need to pay down your mortgage so that a sizeable amount of equity is owned by you before they will release him.

ACG

How much is your income, how much is left on the mortgage, do you have any debts?

It might be possible with other lenders.