What's the difference between 'borrower' and 'mortgagor'?

mooncake

I got a letter from the lender that borrower lists my husband's name and mortgagor lists both mine name and my husband's name. Our lawyer told us because my husband is the solo borrower so only his name can appear in the deed. If my name is in the mortgagor's list, does it mean we must add my name in the deed as well? As far as I know if we add my name to the deed there would be an addtional cost. I don't want any large amount extra cost at the moment.

My lawyer says he doesn't know about this. I should ask the lender. He says the lender can offer anything they like. If I am not satisfied with the offer I can reject it. I don't know what else to say. It's up to us whether keeping my name in mortgagor's list or not. I don't want rejecting offer this kind of thing happens, if it's just an email to the lender asking for delete my name from mortgagor.

I am waiting for the reply from the lender to explain the difference between borrower and mortgagor. Shall I get my name off the mortgagor now, or it doesn't matter?

kingstreet

Ordinarily, lenders insist that those named on the mortgage are also named on the deeds. One or two lenders are happy to have more borrowers than there are owners, but this is the exception, rather than the rule.

Is the lender asking you to make some kind of change, or have you simply seen something on a letter and put 2 and 2 together?

Are you remortgaging, or buying a new home?

If the latter, why aren't you purchasing the property jointly?

In direct answer to your question, the borrower is the person taking out the loan which will be secured over the property by the mortgagor.

The mortgagor is the person, or people, who own the property who can authorise the securing of the loan over their property.

mooncake

Thank you Kingstreet.

Ordinarily, lenders insist that those named on the mortgage are also named on the deeds. One or two lenders are happy to have more borrowers than there are owners, but this is the exception, rather than the rule.
The lender didn't insist. My husband applied for the mortgage sololy. After our mortgage was approved, the mortgage adviser from the bank asked whether we would add my name to the deed. We hestitated so the mortgage advisor said he added my name in their system and leave us to decide.

Is the lender asking you to make some kind of change, or have you simply seen something on a letter and put 2 and 2 together?
The bank didn't ask. I simply saw the names on a letter of valuation conformation, stating they were processing the final offer now.

Are you remortgaging, or buying a new home?
Buying a new home.

If the latter, why aren't you purchasing the property jointly?
This is out of question now. Everything has already happened. As foreigners we didn't know only borrower's name can appear on the deed. I am relying everything on my solicitor but ...... Anyway, the only reason is I don't care whether my name is on the deed or not.

In direct answer to your question, the borrower is the person taking out the loan which will be secured over the property by the mortgagor.

The mortgagor is the person, or people, who own the property who can authorise the securing of the loan over their property.

Is it better to ask the bank to delete my name, or it won't be a problem just leave it like this?

kingstreet

If you aren't going to be a borrower and you aren't going to be an owner, I don't see how you can be a mortgagor?

Wouldn't that mean you'd be asked to sign the mortgage deed for a property in which you will have no ownership?

The lender may have to amend its mortgage offer if it arrives worded as it seems to be, but that's something for the lender and the solicitor to sort out between them.

mooncake

I called my solicitor and he was very sure that only borrower's could appear on the deed. But the bank said we could add my name to the deed, and they knew some of their customers had done this. Based on my research it will cost at least 1k-2k pounds to add a name to the deed. If it cost nothing, of course I would like to do it. That's the reason we hestitated and left my name on the bank's system.

The solicitor said he wouldn't concern about it. Anyway, I am asking the lender to take my name off.

G_M

I suspect taking your name off will result in a secondary issue - that an adult who is not on the mortgage deed is living full time at the property. This is not insumountable but will require another bit of paperwork.

Personally my advice is that you should be joint owner and joint borrower - for all sorts of reasons, including marital.

kingstreet

G_M wrote: »

I suspect taking your name off will result in a secondary issue - that an adult who is not on the mortgage deed is living full time at the property. This is not insumountable but will require another bit of paperwork.

Personally my advice is that you should be joint owner and joint borrower - for all sorts of reasons, including marital.

Seconded. A consent to mortgage form will be needed.

I'd also prefer the mortgage and property in joint names, where possible.

mooncake

For what kind of reasons? If it is about money, it wouldn't be an issue between us. Any other reasons? E.g. when the house needs repairing, can I let an electrician in without my husband signature?

And what kind of paperwork? Neither the bank nor the solicitor mentioned this. We've included myself as a dependent since the very beginning of applying for the mortgage.

I am scared of paperwork. Everytime we talk about paperwork, it costs us money, solicitor, survey ......I am about to cry now. Is England a nightmare? ----When a husband buy a house even his wife can't live inside.

kingstreet

When there is to be an adult resident in the property who will not be party to the mortgage, they are required to sign a "consent to mortgage" form.

This prevents the creation of an implied tenancy in the event of repossession. It simply means you will agree to the terms the lender sets for repossessing and will move out should such an event take place.

It is standard in all such cases and by all mortgage lenders.

mooncake

I see, standard paperwork. It shouldn't be a problem.

mooncake

If you aren't going to be a borrower and you aren't going to be an owner, I don't see how you can be a mortgagor?

Wouldn't that mean you'd be asked to sign the mortgage deed for a property in which you will have no ownership?

Kingstreet, what is a mortgage deed?

Is 'you aren't going to be an owner' because my name won't appear on the deed? I know that people can ask solicitor to add names to a deed, even if the property is still under mortgage. Why not at the beginning of buying a new house? I don't know how much it will cost. But I think it should cost less than adding a name later on.

The mortgage advisor insists that he is sure we can add my name to the deed. It seems the bank side had no problem with adding names. He said it happened to other customers as well that their solicitor said he couldn't add another name. But it's not the truth. The mortgage adviser is very kind he want to communicate with my solicitor by himself now.

It is a simple legal purchasing issue. Why is there no clear legal statement that the solicitors can read to carry on their work ?