Joining a mortgage / Changing a mortgage

alleywall

Hello,

I have been living with my boyfriend long term and we are starting to consider putting my name on his mortgage. Basically we both want to know what to expect before we carry it through.

He currently has an interest only mortgage with nationwide but I'd like to change it to a repayment mortgage.

Who do you think we should get in touch with first? A mortgage advisor or the company in which the mortgage is with? Is there anything we should expect? Unexpected fee's?

We haven't saved up for fee's yet but we are hoping to have the money in the next 6 months.

Any kind of advice is welcome.

Kind Regards
K

kingstreet

Fees for a transfer of equity are not unexpected. You should expect them to total between £400 and £600 for lender and solicitor. If remaining with current lender. you will be vetted as a new applicant and added to the current mortgage, unless you decide to remortgage with a new lender into joint names, completing the transfer of equity at the same time.

Check stamp duty implications too, as that may be another cost you can reasonably expect.

http://www.hmrc.gov.uk/sdlt/calculate/transfer-ownership.htm

Finally, if you want to convert to repayment, again ask current lender to do this during TofE process, or apply for a remortgage on a joint repayment basis.

alleywall

Thanks for the reply.

I forgot to mention that his mother is guarantor of the mortgage and we would like to have this removed at the same time. Would this be an issue?

Who should I approach first, the lender or solicitor?

Kind Regards,
K

kingstreet

This is done at the same time, either by requesting her removal by the existing lender, or by remortgaging into joint names elsewhere. With the latter, the existing mortgage is repaid, so it simply ends on that day.

You deal with the mortgage first, then it is passed to the solicitor to deal with the legal work afterwards.