santander mortgage partner swap / self employed

jam14

Our daughter and boyfriend have just split up after 6 months of owning there first house, he has agreed to having his name come off the mortgage and to be replaced (we will pay him back his initial deposit)

At the last meeting with the bank my wife was looking into having her name on the mortgage but due to her age the terms would have to be changed, the manager suggested our daughter takes it over but she is concerned she will lose any first time buyer benefits when she eventually decided to get a place of her own. Can anyone advie in monetary terms how much she would be losing?

With wanting to do this as quickly as possible as he is still in the house and shes here we are concidering the option of me (step dad) going on the mortgage. Question is will they accept my self employed status? I have been trading full time for 2 years and a month, prior to this I was full time employed but set up as a sideline 6 months previous, so in total as a registered business 2 1/2 years.

I bank with Santander for personal & business, question is if I take in my current accounts since April's tax return will they accept this as proof of earnings or will they want 2 years tax returns?

any help or other options ? basically the mortgage has a release clause with another 18 months to run so all we want to do is get to that point then remortgage but obviously not pay a penalty.

thanks in advance

Thrugelmir

jam14 wrote: »

but she is concerned she will lose any first time buyer benefits when she eventually decided to get a place of her own. Can anyone advie in monetary terms how much she would be losing?

Your daughter already owns a property. So even if benefits were available she wouldn't qualify.

jam14

no our other daughter !

kingstreet

The difference between first time buyer mortgage products and those for subsequent purchasers is minimal. The stamp duty relief for FTBs is also well gone, so no real impact.

Obviously, second daughter will find herself tied to her sister for some time and may find it difficult to extricate herself if she wishes to buy her own property.

jam14

we will remortgage her on a guarantor mortgage we just dont want to have to pay the penalty.

If we can persuade our other daughter she wont be any worse of (or make up the difference at the time she moves) then we can go ahead with her.

However initially she was not happy hence my intervention, now I am concerned Santander may require longer term records in place for my self employment even though its going really well

kingstreet

A remortgage is a new mortgage with a new lender used to repay the current mortgage. This would trigger the payment of any early repayment penalty, so is unlikely to be the answer here.

Your daughter considering joining the mortgage may experience problems if she cannot extricate herself from this when she wants to buy her own property. She may not get a worse mortgage deal, she may not be able to borrow enough if she can't leave her sister's mortgage!

Santander may accept two years accounts to replace the former partner with you. Usually, accountant signed accounts or SA302s are acceptable as evidence of income.

Is your age and the mortgage term not going to cause the same problem it caused your wife?

The usual cost of the transfer of equity you are considering is around £450 to £600 in total.

jam14

Ive just turned 40 so can keep the same 25 year term, my wife being slightly older would hav eto change the terms which also may lead to cost.

basically I want to go on it purely to secure the house for her short term, long term are going to wait until the release penalty has passed then either just keep my name on as we have paid off our mortgage or remortgage and guarantor mortgage. Likewise if the other daughter does it to get past the 2 year penalty limit then remortgage as guarantor and shes off it should she need to be (she isnt going to be leaving for at least 18 months anyway)

I do my own accounts but also bank for business with Santander so hopefully they can confirm the figures easily enough?

kingstreet

Changing from party to the mortgage to guarantor retains the same implications for the guarantor. The commitment is still declarable like any other credit agreement and could result in a lower mortgage being available for the guarantor's next purchase.

Banking with Santander probably means you'll have to supply SA302s for the two full years and they'll check your current year's income from the turnover on your account.

jam14

So bearing in mind my first 6 months was set up when I was still employed and so income was negligible, last years was tax returned in April and this years are on my accounts every month through invoicing - do you think this will suffice?

Were not bothered about guarantor as i say we have no mortgage and its more to secure the property and get the ex away rather than monetary.

kingstreet

TBH the only way you're going to get a definite answer to this evidence of income issue is to ask the lender itself. As this is a TofE, you won't be dealing with the normal "new business" area, so the exact requirements may be different for existing customer situations.

jam14

thanks we have already had a conversation but that was about my wife or daughter, this is a new avenue we have an appointment this week just wanted a better idea so thank you