Transfer of equity advice

Macca13

Hi

My partner is currently on a mortgage with his ex and now I want to go on the mortgage.

He has a poor credit score and mine is good. I have monthly commitments of about 500 a month but earn 27153 which is more than his ex and he earns 22000(26000 with overtime).

The existing mortgage is for 83000 but they o/s is 77000.

What are the chances of bank of Ireland accepting this and what is the process?

I look forward to your help

Thanks

kingstreet

I presume you want to replace the partner?

This is a "one-off, one-one" transfer of equity.

You need to ask the lender for the paperwork and procedure to apply for it, together with the charges. If they accept the request, a solicitor will be needed to complete the legal work once the mortgage change is agreed.

The cost is usually between £400 and £600.

Macca13

Thank you very much

Will it be like going through a new mortgage application? As I am worried about my partners credit history?

I have worked out that is only 1.5 our joint salaries?

Thanks

Goldiegirl

It won't be a new mortgage, it'll still be the existing mortgage, but with one name removed and one added.

However, as you are applying to them to go onto the mortgage, you'll go through all the credit checks and underwriting procedures, in the same way that a new mortgage applicant would.

If you pass the checks, in theory, the removal of one borrower and the addition of another acceptable borrower wouldn't add to lenders risk.

However, I have heard of cases where this type of application has been declined due to the existing borrower (the person staying on the mortgage) failing the underwriting.

I think you'll just have to ask the lender and see what they're attitude is to this type of situation.

jibwauly

I am in exactly the same situation. Looking to do a transfer of equity removing an ex partner and adding a new.

My main concern is that they will re-evaluate myself - (I have recently become a shareholder and now paid dividends). I wonder if its just the person being added that gets checked? I guess some places vary.

Crashandburn

They would just look into the new party been added to the property rather than yourself. The only case where by your situation would be reassessed is if you were porting your mortgage across to a new property and then that is subject to new underwriting.