Ex-BR and getting a mortgage - long story...

motherbored21

Ex is an ex-BR and wants to 'apply for a change of borrower' on the still jointly owned property, in which he resides.

He seems to think that a letter is drawn up by his solicitor, it goes to mine and, if I agree, the mortgage and property become his. I think he will have to apply for a mortgage, as though he is a new borrower and, as he is an ex-BR, with no accountable earnings for the last 20 odd years, he won't get one.

Do mortgage companies allow £21k borrowing for these circumstances?

Any help would be appreciated, thanks.

TheGardener

Hi - mortgages are not transferable as far as I know and even if they were, you would absolutely need the mortgage lenders permission - is it currently a joint mortgage? I think someone with more expertise in mortgages will be able to give you a more definitive answer but I'd tend to think like you - it doesn't seem likely someone who doesn't have an income would be able to do that - how was he planning on paying the remaining mortgage? However, I guess in theory you could 'gift' your interest in the property to him - but would that make him liable for capital gains tax? If you were planning to go BR (your post doesn't make it clear why this transaction might take place) there would be no point gifting anything to him as I would imagine the OR will simply reverse the transaction in order to realise the equity.

motherbored21

Thanks for the response. Yes, mortgage was in and still is in, joint names. I tried 'gifting' it to him a few years back, but the lender wouldn't accept it because of the bankruptcy and arrears (accrued by him) on the property.

I am not going BR, but didn't think about CGT. Good point, thanks.