Transferring a mortgage to another family member?

groovyb

Hey everyone!
My mum has a mortgage on a house but has now had to move to a council owned bungalow adapted for her disabilities. I would like to take over the mortgage on the house and was wondering if there was a way to simply transfer everything into my name? I have a feeling it's not going to be that easy but really don't even know where to start :eek: if anyone could help or advise me the best way to go with this I'd be very grateful

Torry_Quine

You can't transfer the mortgage but would have to get your own. The place to start is her mortgage company.

cte1111

Will your Mum not need the equity from the property to pay for her bungalow? Even if it's council owned, she will still need to pay rent I would have thought. She can't just give the house away and expect to receive housing benefit.

groovyb

She's not expecting to get housing benefit but she's got both mortgage and rent coming out of her account and I try to help her out with them, I will contact the bank to see about getting my own mortgage for it. Thank you

holly_hobby

You will essentially be purchasing the property from Mum.

This will mean a new mortgage in your sole name, be that with Mums current provider under a transfer of equity, or via a new provider - either way your credit status and income will be assessed by whichever lender you select.

If the purchase price (or amount reqd to redeem Mums mortgage) exceeds 125k there will be Stamp Duty (SDLT).

If the RTB was exercised less than 5 yrs ago, then Mum may need to repay some of the original discount.

If she sells for less than market value, then this may well affect any future application for means tested benefits.

A broker will assist.

Hope this helps

Holly